Board Committees Of Atlas Honda Corporation, Pakistan.

MISBAH ULLAH CMS: 16328

TALHA SHAMS CMS: 16340

RAFAQAT RAFEEQ CMS: 16275

Management Sciences Department

Riphah International University

MCOM III

Corporate Governance

Date: 28/12/2016

To:

Dr. Muhammad Naveed

Summary

This report is about the board Committees of Atlas Honda Corporation, Pakistan.It describes the various board committees. There are three committees of Atlas Honda Corporation Pakistan, but the corporation emerged HR and Remuneration Committee.

This report also discusses the corporate governance model of Atlas Honda Corporation.

The various board committees perform their duties and it consists of various board members.Audit Committee looks after the financial reporting compliance with standards i.e IFRS ,GAAPs and the companies ordinance of Pakistan 1984.

HR and Remuneration Committee is looking after the HR personnel and various Remuneration issues like the remuneration of independent non-executive directors and CEO etc.

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Table of Contents

Summary

Introduction

Vision

Board of Directors

Board Committees

Audit Committee

HR and Remuneration Committee

Criticism

Suggestions and Recommendations

Conclusions

References

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Introduction:

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan.  This company was incorporate on November 04, 1992 and joint venture agreement was signed on August 05, 1993. The groundbreaking ceremony was held on April 17, 1993, and within a record time of 11 months, construction and erection of machinery were complete. The first car rolled off the assembly line on May 26, 1994. The official inauguration was done by the President of Pakistan, Sardar Farooq Ahmad Leghari. Mr. Kawamoto, President of Honda Motor Company limited Japan was also present to grace the occasion. The company is listed in Pakistan Stock Exchange in 100 indexes.

On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad. Since then the dealership network has expanded.

Since the commencement of production in 1994, the company has produced and sold more than 200,000 cars until July 12, 2012. 

Vision:

Striving to be a Company that society wants to exist by sharing joys with people throughout the world.

Creating products that maximize the joy of customers, with speed, affordability and how CO2.

BOARD OF DIRECTORS:

Mr. Yusuf H. Shirazi (Chairman)Mr. Toichi Ishiyama (President/CEO)Mr. Aamir H. Shirazi Mr. Hisatada TachiMr. Hironobu Yoshimura Mr. Kazuhisa HirotaMr. M. Naeem Khan Mr. Nadeem Arshad ElahiMr. Takayoshi Koyama

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Board Committees:

The following are the board committees of this corporation.

Audit Committee; This committee Comprises 5 directors. 4 of them nonexecutives directors including ChairmanAnd One is an independent director.The corporation holds 8 meetings before BODs meeting to review financial reports, internal audit report, compliance with best practices of CG requirements & other matters.These meetings include meetings with external auditor before & after completion of the audit and also other statutory meetings as required by Code of CG.

Members:

Mr. Aamir H. Shirazi ChairmanMr. Hironobu YoshimuraMr. Kazuhisa HirotaMr. M. Naeem KhanMr. Nadeem Arshad ElahiMr. Hamood-ur-Rahman Secretary

HR & Remuneration Committee;

This committee Comprises of 5 members. 3 of them are non-executive directors including chairman and other 2 are executive directors.The last year the committee held 3 meetings to discuss and approve the matters falling under the TORs of the committee.

Members:

Mr. Aamir H. Shirazi ChairmanMr. Koichi IshiyamaMr. Hisatada TachiMr. Kazuhisa HirotaMr. M. Naeem Khan Independence of the Committees:

This a family owned company. The most of the members of the look like family members, so we can judge that how much independent these committees are!

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Criticism;

This very Large company & has only 3 committees. From the last 10 years, the have the same audit firm M/s A. F. Ferguson & Company

Chartered Accountant. The company does not change their chairman from 2004 to 2016. The corporation has the same chairman for Audit & HR and Remuneration Committees

Suggestions & Recommendations;

The company should form other committees like Nomination, Executive Committees.The company should change their external auditors and give chance to other audit firms to conduct their external audit.The company should also change their chairman and give to any fresh blood to serve them as well. It would be better for their effective corporate governance and other matters.There should not be the same chairman for various committees, the experts in their field should serve the chairmanship of different committees.

Conclusions:

This report was all about Atlas Honda Corporation. The member of board directors, board committees, the vision and corporate governance model are discussed in the report. There are some criticism and suggestions and recommendations for the Corporation.

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References

www.atlashonda.com.pkAnnual Report 2015-16.www.wikipedia.com

Thank you

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