Is Corporate Governance only a Fad…Fashionable…or a bore!!
Ayla Majid CEO CAMCO (Pvt) Limited
(Corporate Member of Islamabad Stock Exchange)
Why….
• Color Blue fashionable and sells
• Acai Berrys
• Omega III
Code of Corporate Governance 2012
• Board composition – Executive and Non Executive– Independent Directors (1 ..preferably 1/3rd)
• Maximum directorships one can have = 7• System of controls – internal controls• Board has to evaluate itself within 2 years• CEO and Chairman cannot be same person
Code of Corporate Governance 2012
• Directors Training Program• Role of CFO and Company Seretary• Related Party transactions – disclosures• Corporate Reporting Framework• Board Committees – HR and Audit• External auditots – 5 years rotation• Statement of Compliance of code
IFC CG Survey 2010
Findings….At a Global Level• Recent financial crises have elevated the
importance of good governance.• Specific corporate governance-related reforms
could make countries more attractive investment destinations.
• Emerging market investors believe that better firm- level governance can make up for country weaknesses in corporate governance.
IFC CG Survey 2010
Findings….For emerging market fund investment decisions• Corporate governance is a critical factor in
emerging market investment decisions
• Investors are willing to pay a premium for better-governed emerging market firms
IFC CG Survey 2010
Findings….Company Specific• Investors often do not invest in emerging
market companies with poor governance
• Lack of transparency is a red flag for emerging market investors
• Board independence is a low-level concern for emerging market investors
What is happening……!!
Enhance shareholder and stakeholder value
Needs an asessment….
If its fashionable… it needs a cntinous change and that will be based on asessment…
Research on the impact… is it really helpful??