Annual Report 2012 - Lahore Stock Exchange

Statement of Ethics and Business Practices1) The Directors shall be committed to conduct businessin an honest, ethical, transparent and legal manner in thebest interest of the Exchange. Their actions shall begoverned by the vision, mission, core values, the Articlesof Association and Rules & Regulations.2) The Directors shall affirm that they are aware of theirduties and powers under the relevant law(s) andMemorandum & Articles of Association of the Exchange.The Directors shall adhere to all the relevant laws andconform to the accepted standards of code of corporategovernance.3) The Directors shall meet the requirement of Fit &Proper Criteria as mentioned in the General Rules &Regulations of LSE, in addition to meeting therequirements as stipulated under the CompaniesOrdinance, 1984 relating to their eligibility of a director.4) The Directors shall ensure to take appropriatemeasures for the sustainability of the capital market,integrity, building an informed investment communityand developing competitive products and services.5) The Directors shall play active role in the strategydevelopment and planning process, overseeing theconduct of the Exchange's business, identifying principalrisks and ensuring the implementation of appropriatesystems to manage those risks and reviewing theadequacy and integrity of the internal control systems.6) The Directors shall, subject to the approval of theSecurities and Exchange Commission of Pakistan, alter,add to, repeal or substitute any of the rules andregulations, as it may consider necessary or desirable inthe interests of LSE and its stakeholders.7) The Directors shall recognize the need to protect theinterests of members and investors in the securitiesmarket as a primary condition to promote thedevelopment of dynamic and efficient securities market.8) As the frontline regulator, the Board of Directors ofthe Exchange is entrusted with significant fiduciary roleto discharge its duties in utmost good faith. Moreover, theDirectors are expected to refrain from putting themselvesin a position where their personal interest and theirfiduciary duties may conflict.9) The regulatory framework prohibits the Directors onthe Board to abstain from participating in discussion of orvoting on any such agenda/issue which can give rise to aconflict of interest on their part.10) The Directors are forbidden to participate in anydiscussion and/or vote on any matter if they have anyinterest, pecuniary or otherwise, in such matters whichcould reasonably be regarded as giving rise to a conflict ofinterest between their duty to honestly discharge theirfunctions as Directors of LSE. The Directors are requiredto disclose their interest in writing before each meeting ofthe Board of Directors, thereby communicating that theyhave no conflict of interest, whatsoever, with any agendaitem to be discussed/voted upon therein.11) The Directors are also required to maintain theconfidentiality of information entrusted to them by theExchange and other confidential information about theExchange that comes to them, except when disclosure isauthorized by the Board or legally mandated.12) The Directors or the companies or firms under theircontrol, are not required to have any business dealingwith the Exchange or enter into contracts with, or do anywork for the Exchange. The Board shall be the sole judgeas to what constitutes “business dealing”.13) The Directors shall not take advantage of thecompany's information or property, or their position withthe company, to develop inappropriate personal gains oropportunities.14) In order to achieve the desired level of performanceand corporate objectives, the Directors shall encouragepreservation of congenial and professional workingenvironment where all the employees are treatedequitably and with respect, and where efforts of staff areencouraged and their achievements are given duerecognition.42LAHORE STOCK EXCHANGE