Government Eases Eligibility Rules for CFOs and CIAs in State-Owned Companies Amid Talent Shortages

In a move aimed at addressing persistent difficulties in sourcing qualified personnel, the Privatization and Corporatization Board (PCB) has announced new, relaxed guidelines for appointing Chief Financial Officers (CFOs) and Chief Internal Auditors (CIAs) across state-owned enterprises (SOEs).

Described as “minimum requirement” standards, the revised framework is intended to expand the eligibility pool and make key financial appointments more accessible. However, the decision also raises concerns about the potential dilution of professional standards in entities responsible for managing public assets and taxpayer funds.

According to the PCB, the updated guidelines were formulated in response to the challenges of recruiting qualified professionals and are meant to ensure that those appointed are accountable, experienced, and educationally equipped to serve the interests of the company and its stakeholders.

Key Provisions:

- Dismissal clauses include appointments made in violation of guidelines or HR policies, and failure of current appointees to meet education benchmarks within two years.

- Dismissal of CFOs will be decided by company boards, while CIA dismissals will require board approval following audit committee recommendations.

The new framework applies to:

- 100% state-owned companies

- Listed and unlisted SOEs

- Majority government-owned enterprises

- Joint ventures and affiliated state business entities

In tandem, the PCB has also revised the appointment and dismissal guidelines for government-nominated board representatives in these entities.

Updated Criteria for Finance-Focused Non-Executive Directors:

- Chartered Accountant with 3 years of relevant experience

- Master’s in accounting, finance, or auditing with 3 years of experience

- Bachelor’s in relevant field with 5 years of experience

While the PCB’s efforts to increase accessibility are acknowledged, the relaxation of professional requirements in critical financial oversight roles may invite scrutiny over transparency, competence, and long-term governance standards in state-owned enterprises.