JOHNSONIN RESPONSE to the emergence of corporate scandals, or the fear of them, corporate governance has increasingly taken centre stage in the world's business communities over the last decade or so.
But, corporate scandals and keeping directors honest are not the principal reasons that give corporate governance validity in our context, according to Jamaica Stock Exchange Executive Chairman, Roy Johnson.
"Whether there are scandals or not, whether a company is located in a developed or a developing market, corporate governance must be understood as a system or a methodology that makes it possible to build and maintain a relationship of trust and accountability between an enterprise's stakeholders and those who direct and manage it," he said. "At the same time, that system must also encourage and facilitate those who benefit from the enterprise to act responsibly towards it. Good governance adds significant value to a company."
Mr. Johnson was reflecting on one of the topics 'Establishing Corporate Governance in Emerging Markets' which will be discussed at the JSE's 35th Anniversary Symposium at the Jamaica Pegasus Hotel on Tuesday June 22 beginning at 8:00 a.m.
Attorney-at-Law, Christopher Bovell, who is also a member of the Private Sector of Jamaica's Corporate Governance Commit-tee, will speak on corporate governance in emerging markets. "I intend to look at the history of the development of corporate governance since the Cadbury Report in the UK in 1992 and then I will suggest a model for Jamaica based on the PSOJ's Proposed Code on Corporate Governance, which is currently being circulated for discussion," Mr. Bovell said.
What is corporate governance?
According to the Cadbury Committee, corporate governance is a system of checks and balances by which a company is directed and controlled. Others add that corporate governance is both the act of guiding a company, with the goal of keeping it in good order as well as the system by which the activities of the company are controlled by those with the responsibility.
Researchers have also pointed out that different models of corporate governance exist, based on the environment in which companies must operate. It is particularly important, they say, that companies in emerging markets not seek to imitate the so-called, 'Insider-Shareholder' and 'Outsider-Stakeholder' models that have developed in the United States and in the United Kingdom because, one size does not fit all. Corporate governance systems must be responsive to and reflect the particular circumstances of their own environment.
KEYNOTE ADDRESS
Edward Kwalwasser, group executive vice-president, New York Stock Exchange, will deliver the keynote address on the symposium's theme: 'Gear-ing Jamaican Companies for the 21st Century: New Strategies and Standards'.
In November last year, the United States Securities and Exchange Commission signed off on the New York Stock Ex-change's new rules for strengthening corporate governance within their listed companies. Most of the new provisions, which are centred around, "stricter, more detailed definition of independence for directors," according to an SEC release, will go into effect by October 31, this year.
OTHER PRESENTERS
Other presenters and topics to be covered at the JSE's symposium include:
'How to list successfully on the Jamaica Stock Exchange' Ryland Campbell, chairman, Capital & Credit Financial Group;
'The new accounting standards' Linroy J. Marshall, president, Institute of Chartered Accountants of Jamaica; and 'Regulatory compliance & changes: A local perspective' Brian Wynter, executive director, Financial Services Commission.
"We consider this a very significant symposium and I would urge company chairmen, chief executive officers and other senior company personnel to plan to attend," Mr. Johnson said.
This column is part of the on-going public education programme of the Council of the Jamaica Stock Exchange.
