The Caribbean Corporate Governance Institute (CCGI) is calling on Boards of Directors to assess and report on their own performance in the Corporate Annual report.
The CCGI, noting that the content and quality of the annual report is one of most important indicators of “effective corporate governance in both the public and private sectors”, has outlined what it considers to be the main elements for inclusion in the publication. And chief among them, CCGI says, should be evidence that the organization has a strong and effective board.
The organisation is therefore insisting that “All boards should undertake a rigorous, transparent and formal annual evaluation of its own performance and that of its committees and of the individual directors” for publication in the annual report.
CCGI says the annual report should also provide evidence that board members are independently minded and loyal, with the inclusion of an annual disclosure of the selection and appointment process as well as a listing of each independent non-executive director. CCGI reminded that the selection process for directors should be “rigorous and formal and designed to give the Board a balance of independence and diversity of skills, knowledge, experience, perspectives and gender among Directors so that the Board works effectively.”
The Institute recommends that improved disclosure by organisations begin with the publication of a clear outline of the board’s roles and responsibilities, with the Board stating that “it is explicitly taking into account the legitimate interests and expectations of all stakeholders.
There should also be in the Annual Report evidence that there is active co-operation between corporations and stakeholders in creating wealth, employment, and the sustainability of a financially sound enterprise.”
CCGI is further calling on all boards to publish accurate, timely and balanced disclosure of all material matters concerning their company, stating their responsibility towards the integrity of the financial reports.
This, according to the Institute, includes a statement from Directors that the reports comply with applicable financial reporting standards and present a true and fair view of the financial affairs of the company.”
Barbadians can benefit from the CCGI in the upcoming board certification workshop November 11 and 12 at the Hilton Hotel.
CCGI programmes combine deep local knowledge with global benchmark standards. CPD credits are awarded to the CCGI programmes by the Institute of Chartered Secretaries (ICSA), and Institute of Chartered Auditors of Barbados (ICAB).
Further information, membership and event registration and payments go to www.caribbeangovernance.org
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