KARACHI, Dec 7: The election of stock brokers to the board of directors for the year 2005 has ended even before it began, since three of the eight nominees withdrew on Tuesday, in favour of the remaining five who have returned unopposed.

The stock exchange has not said so, but perhaps the general meeting of members called for the election of directors on December 15, may now be adjourned. The board of directors of the Karachi Stock Exchange comprise 10 members including the managing director.

Of those, five directors are elected from and by the 200 members (stock brokers) of the Exchange and four non-member directors are nominated by the Securities and Exchange Commission of Pakistan.

Some years ago, it used to be an all-member board, but the SECP prevailed in placing its nominees under the Capital Market Reforms Programme of the Asian Development Bank. That was one of the most difficult feats accomplished by the previous SECP chief Khalid Mirza, whose gumption, grit and guts are still a legend.

Nominations were withdrawn by the following three before the cut-off time of 1:30pm on Tuesday: Mohammad Ashraf Kothari; Mohammad Rafiq Tumbi and Salim Chamdia. The last a sitting member of the board and having held the position of chairman, some years ago. The members elected unopposed include: Mohammad Siddique Dalal; Mohammad Yasin Lakhani; Dawood Jan Mohammad; Shehzad Chamdia and Abid Ali Habib.

The market is now watching out for the person who would be the chairman of the board. Market sources believe that he who has held the post for several years in the past -- Yasin Lakhani -- might sit at the head of the table, unless any other nominee, particularly, Siddique Dalal decides to contest for the post.

It is generally understood that the chairman is elected by the board from amongst the 'elected' directors. But a member well acquainted with the law argued that as per the regulations, outside directors had the right to vote, which could overturn the member directors' decision or split the votes.

But since such an eventuality has not happened in the past, it is unlikely to happen this time, as well. Last Monday the SECP circulated an order asking the chairmen of Lahore and Islamabad Stock Exchanges not to have their office in the administrative blocks.

SECP chief Dr Tariq Hassan had said that the order had been issued in the interest of transparency, fairness and integrity of the market. Unlike the other two upcountry markets, the succeeding chairmen at the KSE have long since fulfilled the requirement and sit in their personal offices, outside the administrative block.

The SECP order of the previous Monday had reminded the LSE and ISE: "As per the Memorandum and Articles of Association of the Stock Exchanges as well as the Code of Corporate Governance, the chairman is the chairman of the board and his role is limited to chairing the board meetings of the exchange".