Report: More securities issuers adopt CMA code
Seven of 53 issuers of securities to the public assessed by the Capital Markets Authority (CMA) in 2018/19 financial year demonstrated leadership as espoused in the code of corporate governance, a report has revealed.
However, the report further says more needs to be done by the issuers, investors, auditors and CMA among other stakeholders, to foster a cultural shift in corporate governance.
According to the report released yesterday, 17 issuers of securities demonstrated good practices, 21 fair practices and eight needed improvement.
CMA market operations director Wycliffe Shamiah said the code not only promotes the framework for corporate governance, but also recognises the significant role played by stakeholders.
“The corporate governance scorecard provides a platform for issuers to interact with investors, other regulators and the public on market-wide governance practices,” said Shamiah.
He said the report focuses on building a strong foundation of good governance embedded in every issuer’s business dealings and culture, culminating in sustainability and enhanced investor experience.
Speaking during the launch of the report yesterday, CMA chief executive Paul Muthaura said an overall score of 61 per cent weighted in 2018/19 is a commendable improvement from the 55 per cent reported in 2017/18 when the first assessment was made.
The code sets out the principles and specific recommendations on the structures and processes which issuers should adopt in making good corporate governance an integral part of their business dealings and culture.