Corporate governance

Cementos Argos (case study)

Solutions:

I. Role Played by the corporate governance

Cementos Argos, The Company has a Code of Good Governance, whose purpose is to adopt
measures with regard to the governance of the corporation, management practices, the conduct of
its officials, the truthful and fluid management of information and to public knowledge of its
management.

The Code creates value by means of establishing transparent and efficient management structures
which was that it is intended to familiarize investors with the code of conduct that guides the
actions of the company, its management and all its employees.

The main corporate governance objective of this corporate governance code is the adoption of
measures or guidelines with respect how the company is run, its management practices and the
conduct of ARGOS employees, the way it handles information and the public’s knowledge of its
practices, all in the interest of ensuring respect for the rights of those who invest in ARGOS
stock or in any other security issued by the company.

This also contains the corporate governance practices recommended by the Country. The rights
of shareholders and all other investors are protected by Colombian law, the bylaws of the
company and the Corporate Governance Code all shareholders are entitled to exercise their
rights, to submit observations or comments to management, and to request changes or to submit
relevant legal proposals on how to improve the company’s performance.

Corporate governance, understood as the series of rules and policies regulating the structure of
the governing bodies of Argos and the principles of action of its managers, constitutes a true
commitment to maintaining relationships with our stakeholders, under the highest standards of
transparency, respect and equal treatment of shareholders, employees, contractors and suppliers,
communities and society in general. Integrity, as an inspiring principle, is reected in all actions of
our daily activities.

The Good Governance Code contains the regulations of the General Meeting of Shareholders
and the Board of Directors, and adopts general measures about governance and society,
management practices, conduct of our employees, and truthful, uent management of information.
Shareholders have the right to inspect and interact with the Company, beyond the minimum
requirements established by the Colombian law.

The Code contains stricter obligations than the minimum legal requirements in Colombia,
heeding the advice of the Codigo Pais, the New York Stock Exchange (NYSE), the Companies
Circle, and the Dow Jones Sustainability Index, among others, thus ensuring constant
implementation of local and international best practices on the subject.

Maryam Bibi F141ABBAH021 BBA- 7A

 Corporate governance
Cementos Argos (case study)

The success of ARGOS will depend on whether relations among shareholders, relations between
shareholders and the Board of Directors, the President and other directors, and relations between
the company and its employees, suppliers, clients, the authorities and the community, among
others, are managed satisfactorily.

At ARGOS, each relationship with groups of persons or institutions that are associated with the
company is backed by a philosophy and by general guidelines for management and coordination
that are designed to provide every guarantee and to protect their rights effectively.

The objectives in dealing with interest groups are to Acknowledge and guarantee their rights,
Encourage active participation and cooperation aimed at creating value. Develop performance
improvement mechanisms that involve them. Share information that is relevant to the issues that
concern them, in accordance with the law and prevailing regulations.

II. Replicating cementos Argos Example In Pakistan

Yes in my point of view it can be replicated but we have to follow some rules and regulation, we
have to strictly follow them and government should also look after it, But Pakistan do not
implement on it.

Corporate governance does not exist in isolation but draws upon basic principles and values
which are expected to permeate all human dealings, including business dealings principles such
as utmost good faith, trust, competency, professionalism, transparency and accountability, and
the list can go on. Corporate governance builds upon these basic assumptions and demands from
human dealings and adopts and refines them to the complex web of relationships and interests
which make up a corporation.

We do not have to mislead the auditor and all the important details, the company should practice
good corporate governance its rules regulations and policy. The company board of governance
should check and maintain balance and all activities going on through the organization.

Pakistan should also implement the corporate governance which Cementos Argos has followed.
Transparency is very important and misleading should be avoided strictly by the company, very
loss and Profit should be recorded as it is and auditor and accountant should maintain it. By
following theses corporate governance role Pakistan would become a perfect example of
Corporate Governance Organization Country.

Maryam Bibi F141ABBAH021 BBA- 7A