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Tag: Corporate governance

  • Institute seeks greater commitment to corporate governance

    The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has called for greater commitment to corporate governance practices to aid economic growth and boost prosperity.

    The Chairman of its Committee on Corporate Governance, Mrs. Jacqueline Odiadi, spoke yesterday in Lagos when she led a team of ICSAN executives on a visit to the corporate headquarters of Vintage Press Limited, publishers of The Nation titles.

    The ICSAN chief said the team was at The Nation to seek its partnership and support as one of the critical stakeholders to ensure a successful hosting of its “2019 Roundtable on Corporate Governance”.

    She said the roundtable, scheduled for May 9, 2019, at MUSON Centre, Lagos, was imperative in view of the rapidly changing business environment that has made the need for increased regulatory reforms and promotion of good corporate governance compelling.

    Mrs Odiadi said the institute, through its advocacy, had been contributing its quota to expanding the knowledge and practice of corporate governance in Nigeria.

    According to her, this fosterd sustainable and high performance corporate governance practices among businesses and public institutions.

    Underscoring the essence of a company secretary as the custodian of good corporate governance in any organisation, Mrs Odiadi said organisations should consider appointing a professional to provide corporate governance services that are appropriate for the organisation.

    But the ICSAN chief noted that one of the biggest challenges company secretaries face is to be independent of the board in performing their functions without fear or favour.

    She recalled that recent scandals in public and private sectors highlighted the positive role corporate governance plays in supporting corporate sustainability.

    “As custodians of cooperate governance, company secretaries have to ensure that the direct link between governance and success becomes a reality for the organisations they support,” Mrs Odiadi said.

    She said ICSAN has a rich line-up of experts and resource persons from the private and public sectors to throw more light on various issues around the concept and practice of corporate governance in Nigeria.

  • Poor corporate governance killing Airlines , says AMCON

    The Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has attributed the short lifespan of airlines in the country to corporate governance in the management of the airline business in the country.

    Kuru, who was guest speaker at the third edition of the Nigeria TravelsMart Colloquium organised by the Nigeria a Travel Market (NTM) highlighted major challenges of airlines and airports blamed the incessant collapse of airlines in Nigeria on lack of corporate governance and adequate regulatory oversight in the management of aviation business in the country.

    He also called on the Federal Government to concession the airports across the country as government have no business managing airports.

    He said it was high time the government, the regulatory agencies and practitioners realised the important role of aviation in the development of a nation. He said, “The aviation sector is a catalyst for the economic development of nations. It is a wheel that drives economic activities. It facilitates trade, tourism, boosts productivity in the economy, improves efficiency in the supply chain, it is an enabler for investments and can spur innovation. Critically, it is a source of quality employment. For these reasons, it is a strategic sector deserving of a careful plot to greatness if Nigeria is to occupy its rightful place in the comity of nations.”

    The AMCON boss whose presentation was themed “Corporate Governance and Airline Industry development in Nigeria,” also said that aviation regulatory bodies like the Nigeria Civil Aviation Authority (NCAA) must develop the courage to insist that corporate governance is adhered to adding that the industry is riddled with thousands of airline businesses that have failed due to lack of corporate governance as most board of directors are represented by family relations such as father, mother, son who have no competence to manage a business as fragile and sensitive as aviation.

  • Committees on corporate governance, micro-insurance to boost industry guidelines

    The Joint technical, legal and micro insurance committees set up by the Nigerian Council of Registered Insurance Brokers (NCRIB) have met to fine-tune new regulations on Corporate Governance and Guidelines on Micro Insurance proposed by the National Insurance Commission (NAICOM) for the Council’s input.

    NCRIB President, Shola Tinubu, who made this known during the quarterly press briefing of the Council in Lagos, said the meetings are in line with the Council’s proactive response on industry’s regulatory guidelines.

    He pointed out the tempo of proactive response to laws and regulatory prescriptions by NCRIB have been sustained, adding that the Council hopes that the far-reaching suggestions by the Council would serve as good inputs into the guidelines.

    One of the cardinal focus of his administration, he said, is self-regulation, adding that this is the reason why they coined the “Self-Regulation for Self-Respect” slogan, which will continue to be their guide.

    “In our bid to give necessary impetus,” he said, “the Council has published nuggets on compliance issues for members.”

    He noted that the publication would be sustained to add value to members and simplify their operations, streesing that his administration started on a positive note in its quest for a better relationship with NAICOM through visitation to the Commission.

    “In the last three months, we have visited the Commission twice. We used the opportunity to raise crucial matters bordering on contemporary issues on regulation of Brokers, fines and penalties etcetera. The Commission expressed support and showed positive inclination to cooperate with the regime for the benefit of Brokers.

    “The promise of the Commission has started manifesting in its subsequent dealings with the Council as the Commissioner and a team of top management of NAICOM have found time to attend some of our events to shed light on torchy regulatory issues to the delight of members,”he said.

    On issues of compliance with the Federal Government Voluntary Assets and Income Declaration Scheme (VAIDS), he said: “We are all aware that there is no nation that could attain economic buoyancy without exploring taxation as a key revenue option of government. Most modern economies are buoyed on effective taxation and ours cannot be an exception.

    “However, it would be apposite to stress that it behooves on government to live more to its fiscal responsibility when adequate compliance is received from the people and institutions.  When the confidence level is enhanced, payment of taxes would no longer be seen as a burden, but a cardinal responsibility to be discharged by the citizenry.”

     

  • NDIC challenges IoD on corporate governance

    The Institute of Directors (IoD) has a role to play in addressing the poor corporate governance practices in the banking sector, the Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has said.

    Ibrahim stated this during a visit by IoD Governing Council members led by its Chairman/President, Rufai Ahmed Mohammed.

    He said corporate governance was central to banking since the 2009 banking crisis when the Central Bank of Nigeria (CBN) and NDIC Joint Special Examination of the 24 banks identified the issue as one of the flaws of banking.

    Ibrahim stressed the need for the IoD to step up efforts towards developing a more transparent and rigorous selection for independent directors in banks and strengthening their capacity through continuous training focused on international best practices, excellence in management and service delivery, environmental sustainability and inclusive growth.

    He added that this would not only contribute towards better quality of corporate governance, but also build a solid foundation of businesses.

    Ibrahim assured the IoD of the corporation’s readiness to partner the institute. He advised the institute to collaborate with the CBN, Financial Institutions Training Centre (FITC), the Society for Corporate Governance (SCG), and the Chartered Institute of Bankers (CIBN) in promoting capacity building for independent directors, especially of banks.

    He expressed the desire to also collaborate with the institute in building capacity of the corporation’s management most of who were engaged in bank examination to appreciate the dynamics of board performance.

    Mohammed said the visit was part of the council’s initiative to promote collaboration with key institutions through effective interaction and advocacy. He congratulated the NDIC on its contribution to the stability of the banking system.

  • NSE, CBi award corporate governance rating to 33 companies, 435 directors

    NSE, CBi award corporate governance rating to 33 companies, 435 directors

    The Nigerian Stock Exchange (NSE) and Convention on Business Integrity (CBi) have awarded high corporate governance rating to 33 companies and 435 directors under the Corporate Governance Rating System (CGRS) initiative.

    At a media briefing yesterday in Lagos, Chairman, Steering Board of the Corporate Governance Rating System (CGRS), Ms Tinuade Awe said 25 companies successfully passed the rating test, having scored the required pass mark of 70 per cent while 87 other companies are at various stages of completion of the process.

    These 25 successful companies joined eight companies that retained their rating from the CGRS pilot in 2014, bringing the total number of companies rated now to 33. Also, 435 directors passed their certification test. The CGRS was introduced into the capital market in 2012 and was launched in 2014 with a number of volunteer companies including those listed on the Exchange premium board.

    Awe, who is also Executive Director, Regulation at the NSE, the aim of the CGRS rating is to improve the level of corporate governance of listed companies noting that the rating is a developmental index that will help to boost the company’s image and better cooperation when it needs to transact with foreign partner.

    She explained that the self assessment is in three stages which is corporate compliance with its component indicator covering five categories, business ethics and anti corruption, internal and external audit and control, shareholder and stakeholder rights, board structure and responsibilities, transparency and disclosure.

    The companies that have attained the rating during the first roll out phase are Africa Prudential Plc, Continental Reinsurance Plc, Cornerstone Reinsurance Plc, custodian and Allied Plc, Dangote Sugar Refinery Plc, eTranzact International Plc, Flour Mills of Nigeria Plc, Forte Oil Plc, GlaxoSmithKline Consumer Nigeria plc, Guaranty Trust bank Plc, Guiness Nigeria plc, Honeywell Flour Mills, Lafarge Africa plc, NEM insurance plc, Nestlé Nigeria plc, Nigerian Breweries Plc, Pz Cussons plc, Red Star Express Plc, Stanbic IBTC Holdings Plc, Transcorp Hotels Plc, Unilever Nigeria Plc, United Capital Plc, WAPIC insurance plc and Wema Bank. Others that started during the pilot stage in 2014 included Access Bank, Dangote Cement, Diamond Bank, FBN holdings, AXA mansard Insurance, Nigerian Aviation Handling Company, United Bank for Africa and Zenith Bank.

    Chief Executive Officer, Convention on Business Integrity (CBi), Mr Soji Apampa, said the success rate and increased participation in the CGRS initiative is a testament to the rising acclaim that corporate governance is receiving in corporate Nigeria.

    “It is important to celebrate companies and directors who are leading the renewed charge while encouraging others to participate. We continue to celebrate companies where we notice that corporate governance is evolving nicely,” Apampa.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, noted that as the Exchange make surefooted steps to globalise its market, the CGRS rating will bolster the confidence to invest in the Nigerian market especially from international investors.

    “Increasingly, our listed companies are meeting their compliance and requirements and we will continue to protect investors in our market through a robust regulatory regime,” Onyema said.

  • FRC to review National Code of Corporate Governance

    The board of Financial Reporting Council of Nigeria (FRC) has inaugurated Technical Committee on National Code of Corporate Governance.

    The committee will in the coming months review the suspended National Code of Corporate Governance taking into cognizance the extensive public commentary received on the suspended codes, the FRC has said.

    Chairman, Governing Board, of FRC, Adedotun Sulaiman, said the board has been working over the past several months taking stocks and developing a new strategic direction and plan for the FRC.

    He said the council will in the next three to five years, review and re-issue the National Code of Corporate Governance, conduct a post-implementation review of International Financial Reporting Standard adoption in Nigeria; introduce IFRS –Lite for the Small and Medium Enterprises (SMEs) sector and uniform government-wide financial reporting system and improvement of financial reporting and standards of corporate governance.

    The FRC assembled panel of experts and experienced Nigerians to assist it with the assignment. Sulaiman said the new  rules and regulations coming will strengthen the operating environment,  create a more enabling and supportive environment for investment and protect the interest of investors and ease of doing business. He said the review committee will harmonise and streamline different sectoral codes on corporate governance

    Executive Secretary/Chief Executive Officer FRC, Daniel Asapokhai, expressed confidence that the committee would do a great job and help the country address the procedural and substantive concerns that culminated in the suspension of earlier released code in 2016. He said the International Finance Corporation (IFC) backs the ongoing review of the code.

    The committee said suggestions will be taken to different stakeholders and their views secured on the matter. Also, whatever the committee comes up with, must sustain development. “We need to cover those that contribute most to the economy. Public interest entities must capture key participants in the economy,” he said.

    The FRC Technical Committee Chairman, National Code of Corporate Governance, Muhammad K. Ahmad said the suspended National Code of Corporate Governance will be reviewed, revisioned and re-issued in line with peculiarities of the Nigeria’s environment.

    “On a lighter note, the activities of religious institutions are guided by divine laws. And we all know what divine laws are. You and I know that in divine laws, you do not need Economic and Financial Crimes Commission (EFCC). Each and every one of us is going to be held accountable. We carry our duty and go before God and disclose what we have done. There is no hiding place. There is no proscription and there is no lawyer. And since it is a divine court, there is nothing to be worried about,” he said.

    According to Ahmad, who explained why the technical committee deferred review of the National Code of Corporate Governance on Not-for-Profit till later in the year, assured that the code for this segment will be ready before the end of the year. The review starts with public interest entities, with the size, reach among other factors considered because they are seen as big ticket entities.

  • NIM to hold Management Conference in September

    NIM to hold Management Conference in September

    At a press brief on Wednesday, the President and Chairman of Council, Nigerian Institute of Management ( NIM ), Emeritus Prof. Munzali Jibril, FNIM, OFR, announced the institution’s 2017 annual national management conference with theme “Corporate Governance and Institutional Performance”. Also present at the press briefing were – Mr. Festus Olujimi Ogunmokun, MNIM (Director Finance, Accounts, and Investments) and Mr. Anthony Fadaka, FNIM, FCIA (Registrar) of the Institute. The conference is scheduled to hold between the 17th and 19th September, 2017 at the International Conference Centre, Abuja.

    Addressing the press, Munzali stressed that the annual conference is one of the institution’s numerous contributions to nation building by providing a platform to brainstorm extensively on a burning governance and leadership issue of national important and to make sound and informed recommendations to the government and key decision makers.

    According to him, “the choice of the theme of the conference was arrived at when the institute came to the sad realization that most of the sleazy and unethical practices being witnessed in the country in recent times were due to scant regard for corporate governance.

    “In addition, some poorly performing and failed businesses both in the public and private sectors of the economy are caused by non-compliance with the tenets and ideals of corporate governance. Since it is a truism that there is a direct correlation between adherence to corporate governance and institutional performance, there is a new compelling need to draw the attention of the nation, businesses and those who manage man and materials at different levels to the issue of corporate governance.”

    The conference which is expected to be declared open by the President, Federal Republic of Nigeria, Muhammadu Buhari, would be a gathering of the highest number of professional managers, government functionaries, decision-makers, opinion leaders, policy formulators and top management executives in both the private and public sector; a total of 3,000 participants are expected for the conference.

    He also emphasized the sundry roles that corporate governance play in issues bordering on accountability and transparency within the polity. According to him, “corporate governance, when executed effectively, can prevent corporate scandals, fraud and civil and criminal liability of organisations.

    “It also enhances the company’s image in the public eye as a self-policing company that is responsible and worthy of shareholder and debtholder capital.

    “The issue of corporate governance has been one of the reasons most organisations and government have continued to totter in these climes, hence the need to focus on it at this year’s conference with the hope of proffering solutions that will arrest the present slide.”

    Among the corporate governance experts expected to present papers at the conference is Dr. Christopher Kolade (FNIM, CNIM, CON), who will be presenting on the main theme of the conference. Also, presenting at the conference would be Prof. Sheikh Ahmed Abdullah (Former Minister of Agriculture), Dr. Nat Ofo, FCIS (Sub-Dean, Department of Business Law, College of Law, Igbinedion University), Mr. Akinbayo Adenubi and Alhaji Mohammed Abubakar (Past Presidents of the Institute), Dr. Rob Newsome, Dr. Nkechi Ezeako, and Prof. Sulaiman Salihu Aruwa.

  • Dynamics of corporate governance

    Dynamics of corporate governance

    Corporate culture in every corporate setting drives the behaviour of its players, as culture engrains the inescapable norms of fairness, transparency, accountability and ethical behaviors. Absence of these, presents subsisting rules and codes as external impositions to the organization’s stakeholders and this often result in lack-lustre adherence and or total resistance to such rules and codes. This undermines proper growth and development of the enterprise.

    The book Corporate Governance- An Emerging Economy Perspective attempts at responding to the growing dynamism of Corporate Governance.

    In its crisp, incisive, straight to the heart of the matter approach, this detailed, broad based and comprehensive discourse of the critical and all relevant subject of Corporate Governance in Nigeria is indeed an epitome of erudition, industry and lucidity. Its depth of discourse has drawn on recent codes with copious illustrations taken from different sectors but heavily from the oil and gas industry. A Nigerian manual with a rich international flare, truly domesticates corporate governance practice. Easy to read, with lots of comparative examples of legislations and codes from other climes, like the United States of America, United Kingdom, Malaysia amongst others, it is a comprehensive reference book. The author admirably examined the theory and practice of corporate governance in Nigeria and concluded that whereas there is no paucity of legislations and regulations, the phenomenon of impunity has given rise to weak compliance, enforcement and depreciated the unabating corruption in our corporate and national life. He proffered suggestions on how to stem impunity and corruption – the bane of corporate governance in our environment.

    The opening chapter of the book, by way of introduction, defines the subject in a most understandable manner to practitioners, students and laypersons. While laying out structures that support the subject matter and its relevance to Nigeria, it decisively dealt with corporate governance as opposed to corporate management as well as numerous theories that has been postulated on the subject.

    Delving into the historical evolution of the discipline in Nigeria, the author captured the role of regulatory authorities in trying to define the structure and rules of corporate governance practice in Nigeria. His comparism of practice in Nigeria with several other emerging economies leaves one to wonder how long it will take Nigeria to clean its stable to join the League of Nations with good business and ethical practices to anchor a developed economy.

    Chapters 4 – 7 has in-depth discourse on Boards of Directors – composition/ structures, duties, responsibilities, limitations and other key players, their operational processes – through committees and relationships amongst themselves and between them and other stakeholders in the governance of businesses. The attention given to legal duties/liabilities of directors, interplay of stakeholders and markets in relation to the internal workings of the board re-echoes the cardinal role directors play in Corporate Governance. Discussing risk management, audit, ethics, and leadership development as important influencing factors of corporate success, he elevated the need for transparency, accountability and integrity in the governance of businesses. The abuse of the foregoing lays bare certain missteps that account for failures of enterprises and their boards in both the public  and private sectors in Nigeria and globally.

    With brief discourse of corporate governance in other sectors- private companies, the informal sector and not for profit organizations, the author canvassed that the existence of regulations and codes which majority of business leaders in publicly quoted companies strive to comply with, provides important guide for these other sectors and any medium to large size company aspiring to survive and grow sustainably beyond its founder through generations must necessarily adhere to the regime of controls which publicly quoted companies are governed with.

    Given the global concern for good corporate governance, the author spent time to discuss the OECD and the United Nations Convention against Corruption (UNCAC) principles of corporate governance which frown at all forms of corrupt practices in the business place. Willful disclosure, transparency, accountability and fair reporting are a must for the boards and Management of organizations that will sustainably grow over time. He raised the question, where are there still a litany of enterprise failures in the midst of numerous regulations and raft of audit processes?

    The author concludes with a critical look at emerging trends in the subject matter leaves one yearning for more as the author breaks for the next publication. The book is indeed a reference material for directors, practitioners and others involved in corporate governance roles. It also provides good reading for advanced management and business studies students running MBA and other post-graduate courses.

  • GTBank is Best in Corporate Governance in Africa

    GTBank is Best in Corporate Governance in Africa

    Guaranty Trust Bank Plc (GTBank) has been awarded ‘Best Corporate Governance in Africa’, in the Financial services category at the Corporate Governance Awards.
    The event, organised by the Ethical Boardroom Magazine, recognises outstanding companies who have exhibited exceptional leadership in the area of governance and professional ethics.
    Over the years, Ethical Boardroom magazine has consistently delivered in-depth coverage and astute analysis of global governance issues. The editorial team, together with a host of distinguished contributors, tackle the most complex and pressing issues that have a positive and negative influence on boardroom leadership, committees and quorum, ethics and compliance, shareholder engagement, activism and risk management strategies.
    According to the Managing Editor of Ethical Boardroom, Spenser Cameron: “Deciding upon which African financial services company had scooped the top prize for 2017 was a hard task, considering all the final nominees had excelled and over-achieved in their governance practices over the last 12 months.”
    He added that there could only be one winner and that was Nigeria’s very own Guaranty Trust Bank. The West African banking powerhouse has shown the rest of Africa how it’s done by continually placing ethics and integrity at the heart of its business, whilst creating long term value for its stakeholders”
    Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje said: “We are delighted to be recognised as the Best Bank in Africa for Corporate Governance by a globally renowned and well respected magazine. This award is an affirmation of the Bank’s strict adherence to the values of professionalism, quality service delivery and internationally accepted corporate governance standards, which have enabled us create an oasis in the African banking industry”.
    Agbaje further stated that the lender’s commitment to global best practices and standards has seen us emerge the first Nigerian Bank to fully implement all ISO certifications namely; ISO/IEC 27001- for Information Security, ISO 20000 – for IT Service Management and ISO 22301 – for Business Continuity Management and PAS 99:2012 Integrated Management System certification by the British Standard Institute (BSI).
    Presently, the bank has the best credit rating assigned to any Nigerian Bank by both local and international rating agencies (B/stable by Standard & Poor’s and B+ by Fitch Rating), which further attest to our adherence to international best practices and standards.
    As an institution publicly quoted both on the Nigerian and London Stock Exchange, GTBank ensures compliance with the Code of Corporate Governance for Public Companies issued by the Securities and Exchange Commission (‘the SEC Code’), the Code of Corporate Governance for Banks in Nigeria Post Consolidation issued by the Central Bank of Nigeria (‘the CBN Code’), as well as disclosure requirements under the Disclosure and Transparency Rules of the Financial Services Authority (FSA) in the United Kingdom, which are applicable to non-UK companies with GDRs listed on the London Stock Exchange.

  • NAICOM’ll enforce code of corporate governance on insurance CEOs

    NAICOM’ll enforce code of corporate governance on insurance CEOs

    Plans by the National Insurance Commission (NAICOM) to enforce the 2009 NAICOM Code of Corporate Governance on Chief Executive Officers (CEOs) of insurance companies have not changed, The Nation has learnt.
    The regulatory body, NAICOM, in 2009, launched Code of Corporate Governance for the insurance industry in Nigeria as part of its strategic efforts to rebuild and sustain the waning confidence of stakeholders in the sector.
    In the first quarter of 2016, NAICOM began the enforcement of the code on chairmen and board of directors of insurance companies who have held sway as board members of their companies for over 10 years, leading to a major change in boards as at the end of the year.
    The commission which said it was enforcing the code one at a time to ensure effective and efficient compliance, promised to also enforce the code on CEOs.
    NAICOM Head, Corporate Affairs Department, Rasaaq Salami in an interview with The Nation, said the commission will go on with its plan to enforce the code on CEOs at the appropriate time.
    He, however, said that the commission is also waiting on the Financial Reporting Council (FRC)’s new code on chief executives to adopt it for enforcement on the executives.
    He stated that the industry’s 2009 Code did not include that of the CEOs and ‘’that is why we want to wait for the FRC code which supersedes regulatory codes for the private sector’’.
    The Chairman Sub-Committee Publicity and Communications of the Insurers Committee, Oye-Hassan Odukale, who is also the Managing Director Leadway Assurance Limited, said operators are given up to the end of March to comply with the 2009 code.
    He said NAICOM has agreed that since the FRC is coming up with a new code, the industry will allow the FRC code when it is out to supersede the present code in the industry.
    Commissioner for Insurance, Mohammed Kari while speaking to operators at the Chartered Insurance Institute of Nigeria, said the commission has found Executive recklessness and or timidity at the very top of the executive ladder in some companies.
    Kari disclosed that they also found executives that have feigned ignorance when asked to give account of their companies’ misconducts.
    He said: “While some have blamed the Chairman or Directors, some have simply claimed unawareness. Directors including executives seem oblivious of the fact that their action can lead to criminal prosecution. It is true that there had been Chairmen that were overbearing, but any professional on the seat of a company’s executives, should know the expectations on him are onerous.
    “The insurance professional’s role in Board oversight responsibilities is to bring in his professional competence and ethical orientation into play in Board deliberations. In this regard, he is expected to provide explanations and clarifications on issues when necessary in the course of the Board’s work. This is more so on technical insurance issues. He is also expected to bring the professional orientation of integrity and objectivity in his contribution in Board’s decision making. The insurance professional should use his membership of the Board to raise the quality of discussion in Board meetings and, over time, assist other directors in developing improved perspective on insurance and ethical issues.
    “As a member of executive management, he should ensure the information contained in Board papers are accurate and complete in terms of what the Board should know about the insurance entity and reasonableness of explanations offered for any matter being presented to the Board for special attention or deliberation. We find the reverse situation where in absolving themselves, the Directors blame management for corporate misconduct. It is not uncommon to hear some Directors complain that the information or explanations given to them by NAICOM during intervention-related meetings were never given to them by management.”
    He said be as it may, the blame starts from shareholders who do not get involved in the selection of their Directors or who have little concern about their professional competence, compounded by the Board of Directors whose basis of selecting the company’s Executive is their blood or village relations or potential loyalty the Executive would confer on the Chairman.
    “It is of joy to hear that the Industry is making concerted efforts on their own to address these deficiencies. The Commission has welcomed these determinations and I can confirm that arrangements have gone far in the organisation of mandatory Directors training to supplement the efforts.
    “The code of good Corporate Governance plays an important role in the success of any institution. We have observed a correlation between technically and financially deficient companies with corporate governance problems. We see this as negligence on the part of the Board either in performing its oversight functions and or the Board itself actively involved in unprofessional practices”.
    He pointed out that the effective performance of the code and market conduct practice are for the benefit of all and it makes the management of the professional resource easier for the company and it also ensures stability in the market. Regulators despise instability, however stability does not necessarily mean maintaining status quo.