ISBN 92‐64‐01597‐3 – No. 53533 2004

© OECD 2004

Group DELTΔGroup DELTΔ

Afaf Nizam

Burhan Ahmed

Tahira Sadiq

Talha Ajaz

Zirgham ullah Bukhari

Goals of OECDGoals of OECD

a. To achieve the highest sustainable economic growth andg gemployment and a rising standard of living in membercountries, while maintaining financial stability, and thus tocontribute to the development of the world economy;

b. To contribute to sound economic expansion in member aswell as non member countries in the process of economicwell as non‐member countries in the process of economicdevelopment; and

c. To contribute to the expansion of world trade on ac. To contribute to the expansion of world trade on amultilateral, non‐discriminatory basis in accordance withinternational obligations.

© OECD 2004

Disclosure and TransparencyDisclosure and Transparency

The corporate governance framework should ensureThe corporate governance framework should ensure

that timely and accurate disclosure is made on all material

matters regarding the corporation, including the financial

situation, performance, ownership, and governance of the, p , p, g

company.

© OECD 2004

What means Disclosure?What means Disclosure?

A Disclos re sho ld incl de b t not be limited toA. Disclosure should include, but not be limited to, 

material information on:

i. The financial and operating results of the company

ii Company objectivesii. Company objectives

iii. Major share ownership and voting rights

iv. Related party transactions

v. Foreseeable risk factorsv. Foreseeable risk factors

© OECD 2004

What means Disclosure?What means Disclosure?

vi Remuneration policy for members of the board andvi. Remuneration policy for members of the board and

information about board members, including their

qualifications, the selection process, other companyqualifications, the selection process, other company

directorships and whether they are regarded as independent

by the boardy

vii. Issues regarding employees and other stakeholders

viii Governance structures and policies in particular the contentviii. Governance structures and policies, in particular, the content

of any corporate governance code or policy and the process by

which it is implementedwhich it is implemented

© OECD 2004

How to ensure Transparency?p y

B. Information should be prepared and disclosed in accordance with

high quality standards of accounting and financial and non‐

financial disclosure.

C. An annual audit should be conducted by an independent,

competent and qualified auditor in order to provide an externalcompetent and qualified, auditor in order to provide an external

and objective assurance to the board and shareholders that the

financial statements fairly represent the financial position andfinancial statements fairly represent the financial position and

performance of the company in all material respects.

© OECD 2004

How to ensure Transparency?p y

D. External auditors should be accountable to the shareholders

and owe a duty to the company to exercise due professional

care in the conduct of the auditcare in the conduct of the audit.

E. Channels for disseminating information should provide for

equal, timely and cost‐efficient access to relevant

information by users.

© OECD 2004

How to ensure Transparency?p y

F. The corporate governance framework should bep g

complemented by an effective approach that addresses and

promotes the provision of analysis or advice by analystspromotes the provision of analysis or advice by analysts,

brokers, rating agencies and others, that is relevant to

d i i b i f f i l fli f idecisions by investors, free from material conflicts of interest

that might compromise the integrity of their analysis or

advice.

© OECD 2004

OECD’s take for PakistanOECDs take for Pakistan

Business ethics derive from transparency objectivityBusiness ethics derive from transparency, objectivity,

reliability, honesty and prudence. These values allow the

financial sector to generate the key asset to conduct business

and discharge its fiduciary responsibility: trust.

It is vital to engage emerging economies in the creation a

new set of high ethical standards, sharing with them not onlyg , g y

rights but also responsibilities

Angel Gurría,Angel Gurría, OECD Secretary‐General, at the European Business Ethics Forum (EBEF)

22nd January’ 09© OECD 2004

ConclusionConclusion

To restore this trust we need to build a more robustTo restore this trust we need to build a more robust

regulatory framework. We need to prove that globalization is

reliable. And the only way to do so is through an enhanced

multilateral co‐operation. The global economy is too integrated

to function without sound international rules and regulators.

Any Questions!!!Any Questions!!!Please put them forward…

Thank youh k y