Transcript Caribbean Corporate Governance Forum / by Trevor E. Blake

Corporate Governance in the
Caribbean Environment
“The Caribbean Corporate
Governance Forum”
Trevor E Blake
General Manager – ECSE
Corporate Governance
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Corporate Governance is Important!
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Strong governance framework
facilitates economic development by
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Strengthening market discipline
Improving business transparency
Enhancing Disclosure
Enhancing effective Regulation
Enhancing Corporate Social Responsibility
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Corporate Governance
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Strong governance framework assists
governments and regulators to
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monitor markets
identify risks
impose appropriate regulations that
encourage growth and fair competition
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Genesis of CCGF
ECSE/ECCB collaborate to launch
Caribbean Corporate Governance
Forum
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Recognition that CG integral to
development of money & capital markets
Calls for transparency and accountability
Emergence of international CG standards
Investors’ demands for governance
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CCGF
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Caribbean Corporate Governance
Forum (CCGF)
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A pan Caribbean forum committed to
promote good CG standards in the
region
Initiated to bring the Caribbean into
global CG debate
Synthesis of ideas into regional
consensus
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CCGF Objectives
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Raise CG profile in region
Identify relevant development issues
Assess current activities in region
To form a regional network
To establish regional consensus
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CCGF Activities
1st regional roundtable held Sept ’03
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120 participants from 16 countries
Discussion areas included
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global trends and implications for emerging
economies
Caribbean corporate governance challenges
Institutional investor, regulatory, securities markets &
corporate perspectives
governance issues for banks, nbfis, public
companies, state corporations & SMEs
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CCGF Activities
Creation of Caribbean Technical
Working Group on CG (CTWG)
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A grouping representative of various
countries, sectors, industries and
professions
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to promote implementation of initiatives
determine priorities for implementation
Major achievement 
Draft Corporate Governance Principles for
Caribbean Countries
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CCGF Activities
2nd regional roundtable in March ’05
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170 participants from 20 countries
Focus on CG reform
Review CG Principles
Issued a Statement of Principles
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CTWG to develop full set of Principles
Principles to be disseminated across region
for comment
National consultations
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Caribbean CG Principles
Principles focus on 6 broad areas
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I.
II.
III.
IV.
V.
VI.
Objective & basis for Caribbean CG
framework
Shareholder rights and key ownership
functions
Equitable treatment of shareholders
Role of stakeholders
Disclosure and transparency
Board responsibilities
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Caribbean CG Principles
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Meet international standards
Focus on publicly held companies
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Relevant to private, family & state
enterprises
Encourage stakeholder rights
Recognise unique circumstances
of region
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Caribbean CG Principles
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Suited to region’s state of
development
Support integration movement
Non-binding and non-prescriptive
Basis for development of national
and/or sector specific codes
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CG Training Initiatives
Programmes to raise CG awareness
and strengthen pool of directors
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2-day introductory Directors’ course &
1-day Chairpersons workshop held in
June ’05, to promote
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best practices
ethical, transparent practices
formal training
production of Personal Action Plans
Duties & responsibilities of Chairman
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Way Forward
Principles placed on Agenda of CARICOM
Heads of Government meeting
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PM Anthony of St Lucia, responsible for
Justice & Governance
National Adoption of the Corporate
Governance Principles, in entire region
Development of country, sector and
industry codes
Director Certification Training
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Contact Details
Eastern Caribbean Securities Exchange Ltd
P O Box 94
Bird Rock, St Kitts
Tel: 869 466 7192
Fax: 869-465-3798
E-mail: [email protected]
Website: www.ecseonline.com
CG page:
www.ecseonline.com/corporategovernance.asp
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Draft CG Principles
Principle I – Overall Objective
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The corporate governance framework
within the Caribbean should
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encourage the development of
transparent and efficient markets,
have its basis in the rule of law and
ethical standards to foster the division of
responsibilities among supervisory,
regulatory, and enforcement bodies.
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Draft CG Principles
Principle II – Shareholder Rights
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The CG framework should protect and facilitate
the exercise of shareholders rights.
Principle III – Equal Treatment of
Shareholders
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The CG framework should ensure the equitable
treatment of all shareholders, including minority
and foreign shareholders.
All shareholders should have the opportunity to
obtain effective redress for violation of their
rights.
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Draft CG Principles
Principle IV – Rights of other Stakeholders
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The CG corporate governance framework
should
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recognise the rights of stakeholders
established by law or through mutual
agreements
encourage active co-operation between
entities, including family owned businesses
and state-owned/controlled enterprises, in
creating wealth, jobs, and the sustainability of
financially sound enterprises.
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Draft CG Principles
Principle V – Disclosure and Transparency
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The corporate governance framework should
ensure that timely and accurate disclosure is
made on all material matters relating to the
entity, including its
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financial situation
performance
ownership
governance
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Draft CG Principles
Principle VI – Board Responsibilities
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The corporate governance framework
should ensure
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the strategic guidance of the entity
the effective monitoring of its management
by the Board
the Board’s accountability to the entity and
to stakeholders.
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