Department of Management Sciences

Muhammad Burhan
Roll # 15739
Corporate Governance
Assignment
Submitted to: Sir Zahid Maqbool
Q1: Discuss the role played by good corporate governance practices in the growth of Cementos
Argos.

Ans: According to the given case, Good corporate governance plays a vital role for the growth of
Cementos Argos. Under some mentioned reason I have come to this conclusion.

1: When Cementos Argos published their good corporate governance code that thing complies
other some financial institutions, markets, banks and other companies. Due to involving of other
institutions, that thing makes a good reputation of the company and it helps to attract more
investors.

2: When they implement the good corporate governance code, they soon realized that good
corporate governance practices generate the wealth of shareholders and create a path for access
more investors.

3: Adopting good corporate governance code, that thing differentiates them from their competitors
in product line and capital markets.

4: By adopting good corporate governance they learn the fair treatment of shareholders and how to
improve the performance of board of directors.

5: Good corporate governance provide them accuracy and timely delivery of information.

Because of some several points, in 2006 company had a market capitalization of 5.8 billion US
dollars. According to the statistics of 2008, Cementos Argos is a fifth largest cement producer
company in Latin America. Furthermore Cementos Argos supplies their products in 18 different
countries and hold several investment in different regions.

Q2: Do you think this example can be replicated in Pakistan. Give reasons for your answer.

Ans: According to my opinion, yes it can be replicated in Pakistan.

For that we need to follows some rules and principals. And government should look after the all
matters. Furthermore there are some several reasons which can justify my answer.

1: Pakistan is a well growing country and the Pakistan stock exchange (PSX) comes in top 5 stock
exchanges due to its performance. It indicates that the Pakistan’s people are taking interest in stock
exchange market. If any company adopt good corporate governance and differentiate them from
their competitors and educate the investors and shareholders regarding the benefits of good
corporate governance then they must be take interest in their company.

2: Moreover Pakistan’s government is involved in PSX. And the government guaranteed the small
investors and shareholders regarding the securities of their rights and investments. That thing makes
Pakistan’s investors feel free to invest any company. Because of security of rights peoples are taking
interest in stock exchange markets. In these conditions if the any company adopt good corporate
governance code and successfully reached to common public then there are high possibilities of that
they will invest their money.

Because of these reasons I think given example can be replicated in Pakistan.