Keepinformed
Siasat.pk - Blogger
For the benefit of the Mazdoor Tabqa on Siasat.pk majority of whom have no knowledge about corporate governance and laws revolving around it. Please read the following information. Some day it might actually help you in your professional careers.
1. Ownership in a publicly traded company has nothing directly to do with power of attorney to make decisions. You can have 5% ownership in the publicly traded company and still be Asfaq Pervaiz Kayani of it for example Mark Zuckerberg owns 18% shares of Facebook.com. Rest of the shares are owned by large banks, pension funds, government institutions and thousands of private investors. Mark Zuckerberg however had the companys decisional board structure constructed in a manner which gave him absolute power over day to day operations. Nothing can go in and out without Mark Zuckerbergs permission.
2. Tareen is breaking the law when he is supplying company's jet which was purchased from the money of the shareholders who bought the shares of his company in Karachi Stock Exchange. By that meaning all shareholders are entitled to use the company corporate jet. Open an account with http://www.akdtrade.com and buy his shares, then feel free to drive to the airport's private jet lounge and use it to fly over to PTI's next public meeting.
3. Corporate scrutiny is very limited in Pakistan if it at all exists. Investors do not know their rights and even if they do, all they can play with is, Take it or Get out. He would have been in Jail had this been in NY with SEC agents all over him.
A simple scenario would explain it much better for the common labor minded man on Siasat.pk.
You and Rehman Malik go into business together to sell shoes. Everyone in the market loves your shoes. You then decide buy a corporate jet to fly over various cities in Pakistan for business. Rehman Malik joins politics and starts using company's profits including the corporate jet to fly Bilawal Bhutto all over Pakistan.
How would you react? In this scenario "you" are the shareholders and "rehman malik" represents Tareen.
In Pakistan it is quite common however illegal.
1. Ownership in a publicly traded company has nothing directly to do with power of attorney to make decisions. You can have 5% ownership in the publicly traded company and still be Asfaq Pervaiz Kayani of it for example Mark Zuckerberg owns 18% shares of Facebook.com. Rest of the shares are owned by large banks, pension funds, government institutions and thousands of private investors. Mark Zuckerberg however had the companys decisional board structure constructed in a manner which gave him absolute power over day to day operations. Nothing can go in and out without Mark Zuckerbergs permission.
2. Tareen is breaking the law when he is supplying company's jet which was purchased from the money of the shareholders who bought the shares of his company in Karachi Stock Exchange. By that meaning all shareholders are entitled to use the company corporate jet. Open an account with http://www.akdtrade.com and buy his shares, then feel free to drive to the airport's private jet lounge and use it to fly over to PTI's next public meeting.
3. Corporate scrutiny is very limited in Pakistan if it at all exists. Investors do not know their rights and even if they do, all they can play with is, Take it or Get out. He would have been in Jail had this been in NY with SEC agents all over him.
A simple scenario would explain it much better for the common labor minded man on Siasat.pk.
You and Rehman Malik go into business together to sell shoes. Everyone in the market loves your shoes. You then decide buy a corporate jet to fly over various cities in Pakistan for business. Rehman Malik joins politics and starts using company's profits including the corporate jet to fly Bilawal Bhutto all over Pakistan.
How would you react? In this scenario "you" are the shareholders and "rehman malik" represents Tareen.
In Pakistan it is quite common however illegal.
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