BUSINESS LAW

Course Incharge:
Humayun Raza

Group Members:
 Abdul Rafay
 Ali Akbar
 Fouzan Rizvi
 Irfan Alam
 Talha Shiekh
CORPORATE GOVERNANCE

Corporate governance is the set of processes, customs,

policies, laws and institutions affecting the way a
corporation is directed, administered or controlled.
CORPORATE GOVERNANCE

The purpose of corporate governance is to facilitate

effective, entrepreneurial and prudent management that
can deliver the long-term success of the company.
 CORPORATE GOVERNANCE
REGULATIONS IN PAKISTAN

Corporate governance in Pakistan is still at the

developing stage. The government has formed an
institute of corporate governance which promotes good
corporate practices through various means.
 PARTIES TO CORPORATE
GOVERNANCE
Regulatory Body Stakeholders

 Chief Executive Officer  Suppliers

 Board of directors  Employees

 Management  Creditors

 Shareholders  Customers

 Community at large
 GLOBAL DEVELOPMENT IN
CORPORATE GOVERNANCE

Corporate governance is at the centre of attention in

today’s business world. This is greatly due to the large
number of stakeholders whose wealth and interests are at
stake in the business.
 COMBINED CODE UK
The Main Principles of the Code

 Section A: Leadership
 Section B: Effectiveness

 Section C: Accountability

 Section D: Remuneration

 Section E: Relations with Shareholders

 SARBANES-OXLY ACT

Is a United States federal law enacted on July 30, 2002,

which set new or enhanced standards for all U.S. public
company boards, management and public accounting
firms.
 SARBANES-OXLY ACT

The Act was held for the companies perceived corporate

governance failings are matched virtually point for point
in the principal provisions of the Act.
 SARBANES-OXLY ACT
The bill was enacted as a reaction to a number of major
corporate and accounting scandals including affecting
Enron and WorldCom.
Enron Corporation was an American energy company
based in the Enron Complex in Downtown Houston,
Texas.
MCI World Com is an American telecommunications
subsidiary of Verizon Communications that is
headquartered in Ashburn, unincorporated Loudoun
County, Virginia.
THE MAIN PROVISIONS OF THE
SARBANES-OXLEY ACT INCLUDE:

 the establishment of the Public Company Accounting

Oversight Board
 develop standards for the preparation of audit reports

 provisions for the independence of audit committee

members
 bonuses in case of financial restatements; and expanded
financial disclosure of firms'