SOE’s Instructed to Refrain from Major Business Activities During Executive Appointments

The Privatization and Corporatization Board (PCB) has issued directives to government-owned companies, instructing them to refrain from engaging in significant financial or commercial activities during the period between the resignation of an executive member and the appointment of a new one.

In a statement outlining the procedural guidelines for such situations, the PCB emphasised that companies should limit decision-making during this transitional phase to the day-to-day operations of the organisation.

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According to the PCB, in the event of the Managing Director or Chief Executive Officer’s resignation from a government-owned company, an executive member of the board may assume the role temporarily. 

However, in the absence of an executive board member, the management responsibilities may be entrusted to a senior individual within the company’s management structure who is not on the board of directors.

The PCB has mandated that companies communicate the details of the person temporarily entrusted with the management of government-owned companies during this transitional period. The information is to be shared with the Privatization and Corporatization Board.