Yesterday, the Privatization and Corporatization Board stated compliance with the “Privatization, Corporatization and Monitoring and Evaluation of State Business Establishments Act” from 2020. In line with this legislation, the Board has officially ratified the “Standards of Directors of State-Owned Companies Act, 2020,” in a meeting held on 14th September 2023.
This newly enacted regulation delineates the disciplinary criteria that directors appointed to the boards of state-owned companies must observe in carrying out their responsibilities. It also lays out the process for registering complaints with the Privatization & Corporatization Board in cases of norm violations.
Adopting this rule is of considerable significance, as it provides a structured framework for suspending and implementing corrective measures against directors who breach the code of conduct or established norms.
Hence, directors of state-owned companies are expected to adhere to this rule, effective October 3, 2023.
