Shirajiv Sirimane
The Securities and Exchange Commission (SEC) is drafting a new Act to minimize manipulative actions in the corporate world, Securities and Exchange Commission Chairman,Tilak Karunaratne said.
Speaking at the Board Leadership Director Certification Programme conducted by the Sri Lanka Institute of Directors (SLID) last Tuesday he said this will help the SEC to take preemptive action.
“Complete security for employees and audit firms where their jobs and mandate are concerned and legal provisions protecting them being prosecuted for such affirmative action will be incorporated in the new Act.
“Where the whistleblowing employees are concerned if the allegations are true, will be rewarded with bounties,”he said.
Good governance is an expression in vogue today among emerging nations especially in Asia such as India, Indonesia, Sri Lanka and even China.”
“However implementation of the principals of good governance in a country will be a futile effort unless and until the principals of this ideology cascades to all units of the economy. In such a context one could not undermine the importance of Corporate Governance in organizations.”
“The Government or the regulator cannot foster Corporate Governance in isolation. It should be a joint initiative by all relevant stakeholders and I am pleased to note that several organizations have come forward to further this cause by offering various formal educational programmes.”
“It is disheartening to note how certain listed entities have not fully understood the importance of good governance. Negligence on their part not only exposes these companies towards greater risk but the effect also trickles down to the capital market.” The infamous NSB TFC share deal where a stock broker, perhaps acting in concert with sections of the top management of both NSB and TFC (the findings of the SEC investigation on the matter is still pending with the Attorney General for his opinion) sold 7.8 mn TFC shares at highly inflated price of Rs 50.00 to NSB.”
“The share price of TFC was around Rs 30.00 at that time. After the deal went through the then Chairman of TFC told the media that the deal was completely value driven and an investment for the future of both corporate entities breaking all codes of good governance. On July 27, 2015, the share price of TFC was Rs 14.00 and according to the latest Annual Report the Net Assets value per Share was Rs (51.44). The SEC was able to reverse this deal which saved NSB Rs 390 m then.”
“Such phenomenon is not limited to Sri Lanka. At times even world famous companies in developed economies could fall short of good corporate governance,” he said.
www.dailynews.lk
The Securities and Exchange Commission (SEC) is drafting a new Act to minimize manipulative actions in the corporate world, Securities and Exchange Commission Chairman,Tilak Karunaratne said.
Speaking at the Board Leadership Director Certification Programme conducted by the Sri Lanka Institute of Directors (SLID) last Tuesday he said this will help the SEC to take preemptive action.
“Complete security for employees and audit firms where their jobs and mandate are concerned and legal provisions protecting them being prosecuted for such affirmative action will be incorporated in the new Act.
“Where the whistleblowing employees are concerned if the allegations are true, will be rewarded with bounties,”he said.
Good governance is an expression in vogue today among emerging nations especially in Asia such as India, Indonesia, Sri Lanka and even China.”
“However implementation of the principals of good governance in a country will be a futile effort unless and until the principals of this ideology cascades to all units of the economy. In such a context one could not undermine the importance of Corporate Governance in organizations.”
“The Government or the regulator cannot foster Corporate Governance in isolation. It should be a joint initiative by all relevant stakeholders and I am pleased to note that several organizations have come forward to further this cause by offering various formal educational programmes.”
“It is disheartening to note how certain listed entities have not fully understood the importance of good governance. Negligence on their part not only exposes these companies towards greater risk but the effect also trickles down to the capital market.” The infamous NSB TFC share deal where a stock broker, perhaps acting in concert with sections of the top management of both NSB and TFC (the findings of the SEC investigation on the matter is still pending with the Attorney General for his opinion) sold 7.8 mn TFC shares at highly inflated price of Rs 50.00 to NSB.”
“The share price of TFC was around Rs 30.00 at that time. After the deal went through the then Chairman of TFC told the media that the deal was completely value driven and an investment for the future of both corporate entities breaking all codes of good governance. On July 27, 2015, the share price of TFC was Rs 14.00 and according to the latest Annual Report the Net Assets value per Share was Rs (51.44). The SEC was able to reverse this deal which saved NSB Rs 390 m then.”
“Such phenomenon is not limited to Sri Lanka. At times even world famous companies in developed economies could fall short of good corporate governance,” he said.
www.dailynews.lk
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