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Shareholding pattern

Sui Northern Gas Pipelines Limited (SNGPL) is a public limited company with majority shares
being in the name of the government or government controlled institutions. The shareholding
pattern is visible from the data of the recent years, according to which more than 60% shares of
the company are held by the government. Various government controlled institutions hold an
additional 26 percent of the shares in the company. Like many other public limited company,
SNGPL also has share of its employees, with SNGPL Employees Empowerment Trust holding
about 5 percent of the shares. Additionally, MCB bank limited holds about 9 percent of the
shares in the company. The rest of the shares are held by general public. Thus the share holding
pattern of SNGPL is broad with many stakeholders.

Currently, there are 15,389 shares holders of the company with total number of shares amounting
to 634,216,665.

Structure of SNGPL
The company is managed by a board of directors headed by the managing director. The directors
of the board are elected by the company shareholders through an Extraordinary General Meeting
(EGM). The directors are elected for a period of three years and this selection is governed by the
provisions of sections 178 and 180 of the Companies Ordinance, 1984. Additional structure of
the company includes various committees such as Finance Committee, Audit Committee, UFG
Control Committee, and Human Resource Committee. The head office of the company is located
at Lahore which includes the offices of the chairman, managing director, and other senior
managers. The chief financial officer manages the affairs such as credit from bank, allocation of
funds, taxes, employee training, and such. The internal audit department, under the supervision
of the audit committee, performs the audit of different departments in order to ensure that the
work is done in accordance with company policies and departmental procedures. Other
departments in the company structure include CFO, billing, distribution, logistic support etc.
Corporate Governance Practices
The company is dedicated towards highest standards of corporate governance at all levels. It
aims at protecting the rights of its shareholders while striving for high transparency maintained
through its Board of Directors. Internal controls are extremely important in corporate governance
due to which these controls are regularly reviewed and improved. The decision-making process
gives due importance to all the stakeholders in the company. The core values of the company
include commitment, courtesy, competence, responsibility, and integrity.

Currently, the board of directors of the company consists of 13 directors, comprising of an


executive member and 12 non-executive members. The chairman of the board is from the non-
executive members. The board of directors aims at ensuring low risk and high returns for its
shareholders. The directors also provide guidance and managerial advice to the executives. The
sub-committees formed by the board reviews and deliberate upon different issues. The corporate
governance practices of the company include orientation courses for the directors in order to
inculcate in them awareness about their duties and responsibilities. The board meets almost every
month and all the matters of pressing importance are discussed. These matters include approval
of financial statements, risk management policies, business plan, and other aspects of the
business.

The corporate governance practices of the company include clear demarcation between the roles
and responsibilities of different departments and committees. For instance, the audit committee
of the company is composed of non-executive members and is required to meet at least once
every quarter. It manages the internal control in the company while also reviewing quarterly and
annual financial statements and approving companys accounting policies. It also recommends
external auditors to the board of directors. The finance committee of SNGPL is composed of
eight members, seven of whom are non-executive directors. The committee reviews major
investment proposals and revenue budgets of the company while also approving contracts under
the purview.

Similarly, other committees and working bodies of the company have their roles and mandates
clearly defined.

References
http://www.ppisonline.com/PEPC2013/Downloads/SNGPL.pdf.

Sngpl.com.pk

https://www.scribd.com/doc/38926127/Internship-report-on-Sui-Gas

sngpl.com.pk/download/AnnualReport-2009/Pages1-21.pdf