SECP Issues Guidelines for Shareholders Regarding Voting Process

The Securities and Exchange Commission of Pakistan (SECP) has directed companies that the shareholders should follow the voting instructions provided by the company to make sure that the voting process remains transparent. According to the SECP’s Guidelines for Professional Conduct in General Meetings, shareholders should vote freely based on their own judgment and not be influenced or pressured by other participants. Shareholders appointing a proxy should ensure that the completed proxy form is submitted by the deadline specified by the company. Late submissions may invalidate the proxy. Shareholders should avoid appointing multiple proxies as it would render them invalid. Shareholders need to appoint another member as proxy as appointment of non-members as proxy is only possible if allowed by articles of the company, SECP maintained. Shareholders should provide clear voting instructions to their appointed proxy and confirm the proxy understands their role and responsibilities, SECP added.