Tag Archives for " Corporate governance "

Wates Corporate Governance Principles

The Financial Reporting Council (FRC) has published a consultation on corporate governance for large private companies.

Chaired by James Wates, chairman of The Wates Group, the Wates Corporate Governance Principles consultation document encourages large private companies to follow six principles to inform and develop their corporate governance practices and adopt them on an ‘apply and explain’ basis:

  • Purpose – An effective board promotes the purpose of a company and ensures that its values, strategy and culture align with that purpose.
  • Composition – Effective board composition requires an effective chair and a balance of skills, backgrounds, experience and knowledge, with individual directors having sufficient capacity to make a valuable contribution. The size of a board should be guided by the scale and complexity of the company.
  • Responsibilities – A board should have a clear understanding of its accountability and terms of reference. Its policies and procedures should support effective decision-making and independent challenge.
  • Opportunity and Risk – A board should promote the long-term success of the company by identifying opportunities to create and preserve value and establish oversight for the identification and mitigation of risk.
  • Remuneration – A board should promote executive remuneration structures aligned to sustainable long-term success of a company, taking into account pay and conditions elsewhere in the company.
  • Stakeholders – A board has a responsibility to oversee meaningful engagement with material stakeholders, including the workforce, and have regard to that discussion when taking decisions. The board has a responsibility to foster good relationships based on the company’s purpose.

James Wates commented, “These principles will provide a flexible tool for companies of all sizes, not just those captured by the new legislative reporting requirement, to understand good practice in corporate governance and, crucially, adopt that good practice widely. The principles are about fundamental aspects of business leadership and performance.

The consultation is open until 7 September 2018.

 

The CEO/Chairman debate continues

Corporate France is bucking the global trend of splitting the roles of chairman and CEO, with Thomson Reuters data showing a steady growth in the number of French companies that have merged the posts in the past 15 years.

Almost three quarters of listed French companies tracked by Thomson Reuters now have or have had one person holding both positions, compared to 60 percent in the United States and fewer than 20 percent in Britain, Germany and Japan, according to an analysis of more than 6,500 companies. [MORE]

Post graduate course in corporate governance and compliance announced

HKBU School of Business Launches Master’s Programme in Corporate Governance and Compliance

HONG KONG, March 22, 2017 /PRNewswire/

HKBU School of Business has announced the launch of the MSc in Corporate Governance and Compliance (Programme) in response to the pressing industry demand for qualified talent in the field of corporate governance, corporate secretaryship, risk management, and compliance. The first intake of 40 will be admitted in September 2017.

This new Programme, fully accredited by The Hong Kong Institute of Chartered Secretaries (HKICS) and The Institute of Chartered Secretaries and Administrators in the United Kingdom (ICSA), prepares directors (including independent non-executive directors), company secretaries, and professionals in related fields to strengthen sustainability and accountability of their organisations. Graduates will be well-quipped to assume leadership roles, from management to the boardroom, from businesses to non-profits.

Strategically integrating business and legal disciplines, students will obtain a degree at master’s level in one and a half years on a part-time basis, and be eligible to apply for full exemption from the qualifying examinations of HKICS and ICSA. Graduates who go on to become members of HKICS are qualified for appointment as company secretaries of listed companies under the Listing Rules of the Stock Exchange of Hong Kong. Membership of HKICS is one of the three professional qualifications recognised by the Stock Exchange of Hong Kong as necessary for fulfilling this position.

“Businesses face ongoing challenges in terms of corporate governance and sustainability,” said Professor Ed Snape, Dean of HKBU School of Business. “We are responding to calls from the business sector for qualified professionals in this area. At the same time, the new Programme is benchmarked against the best international standards and provides international recognitions. Our graduates will help businesses and other organisations achieve the highest ethical and regulatory standards — and this is at the heart of our School’s mission.”

HKICS President, Ivan Tam, said, “We are delighted to have this collaborative Programme with HKBU School of Business for nurturing future governance professionals. We look forward to having the graduates of this Programme becoming qualified Chartered Secretaries who will help promote and implement good governance policies and practices in their organisations for long term sustainability and accountability purposes.”

The Director of the Programme Dr. Davy Wu pointed out that the Programme is designed for those who are interested in corporate governance of commercial enterprises or non-profit organisations. “Increasingly companies and organisations need people who have an exceptional understanding of both business and legal issues to be able to address complex corporate governance challenges such as securities regulation, risk management, and regulatory compliance.”

For further details about the Programme, please visit bus.hkbu.edu.hk/msccgd.