New code of conduct for public companies
20 May 2014, 11:14
Nairobi - The Capital Markets Authority (CMA) has released a draft Code of Corporate Governance Practices for public listed companies in the country.
This is in exercise of the powers conferred by sections 11(3) (v) and 12 of the Capital Markets Act.
CMA announced that the draft Code will be placed on exposure to the public for a period of 30 days commencing Tuesday.
In a statement, CMA said that the Code of Corporate Governance Practices had been drafted after extensive engagement and rigorous input from listed companies, licensed intermediaries, government officials, academia, multinational and foreign investors and global corporate governance experts.
“Its drafting was necessitated by the need to address developments at national, regional and international levels so as to strengthen the market against risks that would threaten the financial system and stifle private sector dynamism, entrepreneurship and ultimately, economic growth,” said the CMA statement.
It added that the code was also intended to move away from simple compliance and ‘box-ticking’ towards fundamental change.
Paul Muthaura, the Acting Chief Executive of CMA noted, “The exposure period provides a chance to all stakeholders to review the Code and give their input. Once stakeholders’ comments have been taken into consideration the Authority will channel the draft Code to the Cabinet Secretary, The National Treasury for enactment.”
Once enacted, the Code of Corporate Governance will supersede the Corporate Governance Guidelines issued in 2002.
“The Capital Markets Corporate Governance Steering Committee that has been responsible for the development of this Code has broadly reviewed corporate governance standards from all over the world all the while taking into account the special circumstances in Kenya to ensure this Code is highly localized and contextualized,” Muthaura added.
– CAJ News
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