CMA issues guidelines for public companies
Posted Thursday, January 24 2013 at 00:00
All public companies regardless of whether they are listed on the stock market, must comply with corporate governance standards as stipulated in the new Companies Act 2012.
Corporate governance – a set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is managed – previously voluntary, is now a mandatory requirement, the Capital Markets Authority boss, Mr Japheth Katto, made the remark on Wednesday. This follows the introduction of the new Companies Act 2012 that was ascended to president on August 27, 2012 and is yet to be enforced by the Minister of Justice. “The company that has adopted the code of corporate governance shall annually file a statement of compliance with the registrar of companies and the Capital Markets Authority as mandatory requirements for all public companies listed or not listed on the stock exchange,” Mr Katto said.Mr Katto explained that with new good corporate governance, companies can easily access finance from financial institutions.