The Privatization and Corporatization Board (PCB) has ordered state-owned companies not to hold annual general meetings in violation of the Code of Corporate Governance for State-Owned Enterprises.

Article 18 of the Code of Corporate Governance for State-Owned Enterprises states that companies should hold annual general meetings with the inclusion of officials of the PCB and the Ministry of Finance. However, the PCB's monitoring has noticed that some government-owned companies are acting in violation of the code.

“Therefore, please ensure that officials of the Privatization and Corporatization Board and Ministry of Finance are involved in organizing the Annual General Meeting and Special General Meetings in accordance with the aforesaid Governance Code,” the PCB said.

The PCB has also asked companies to complete the online checklist form shared with them before the AGM. The link to the form has been shared with the company secretaries, the PCB said.

Compliance with PCB directives is an obligation under the “Privatization, Corporatization and Monitoring and Evaluation of State Enterprises Act” for state-owned enterprises, government-owned enterprises as well as commercial government entities.