ISLAMABAD, Jan 7: The Securities and Exchange Commission of Pakistan has prepared a Manual of Corporate Governance that explains the responsibilities of management , directors and auditors of listed companies in achieving compliance with good governance practices, according to an official source.

The SECP had issued the Code in March 2002, which was subsequently incorporated in the listing regulations of stock exchanges. The Manual will serve as a reference handbook for companies. While explaining the importance of good corporate governance practices for companies, it describes the duties and responsibilities of the directors, managers of a company in terms of the Code and the Companies Ordinance, 1984.

It also spells out the role of various stakeholders in a company. The Manual has been divided into the following sections: What is corporate governance? the need for corporate governance; the stakeholders; promoting reform and shareholder activism; role and responsibilities of directors and managers; scrutinising financial statements - what every director should know.

While discussing the roles and responsibilities of directors, the Manual lays down their fiduciary duties under corporate as well as Islamic law. It distinguishes between the responsibilities of the chief executive officer, the company secretary and the chief financial officer, provides certain guidelines which directors can use as reference while reviewing financial statements.