Please
refer to our BPD Circular No. 16 dated 29th June,
2002 on the captioned subject.
The clause (5)
of the above Circular i.e. “Conflict
of Interest” has been amended/substituted as under:-
“5.
CONFLICT OF INTEREST”
Ř
Is not a director of any other financial institution.
The term financial institution will include any bank, investment
finance company, non-banking finance company, venture capital
company, housing finance company, leasing company or modaraba
company.
Ř
The conflict of interest shall not apply in the cases
of:-
a.
Directors nominated by the Government.
b.
Managing Directors and other nominated officials
of National Investment Trust (NIT) and Investment Corporation
of Pakistan (ICP) till the privatization of these two
financial institutions.
c.
Nominees of foreign and local investors, provided
that they are appointed on the boards of dissimilar financial
institutions.
For
the sake of clarity, the term “dissimilar” implies as an example,
that one person appointed as director on the board of an investment
bank may not again be appointed in any other investment bank.”
All
other instructions as contained in the above referred Circular
shall remain unchanged.
Kindly
acknowledge receipt.
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