SEC sets corporate governance seminars

The Securities and Exchange Commission (SEC) will conduct corporate governance seminars in the provinces as part of efforts to promote sound business practices and enhance investor confidence.

The SEC has already scheduled a seminar in Bacolod City and Cebu City on June 26 and July 31, respectively.

Finance Secretary Jose Isidro Camacho will be the special guest speaker in the Bacolod seminar. Other high-caliber resource speakers invited by the SEC are Jesus Estanislao of the Institute for Capital Development, Victor Lim of the Asian Institute of Management, Atty. Francisco Ed Lim from the ACCRA Law Office and Leonardo Matignas from accounting firm SGV and Co.

The SEC said the practice of good governance in corporate entities brings about greater transparency and accountability, ensuring the protection of stakeholders and the general public as a whole.

Bent on improving the quality of governance in the corporate sector, the SEC will monitor the compliance by listed companies of commitments they made in their corporate governance manuals.

The SEC said the mere submission by listed corporations of their respective corporate governance manuals does not necessarily mean that they already adhere to sound business principles.

The adoption of a Code of Corporate Governance was required by the SEC of all listed corporations, brokerage houses, investment houses, pre-need companies, mutual fund firms and other companies with a secondary license from the Commission.

The Code is intended to provide guidance to corporate directors so that they can carry out their duties and responsibilities effectively and in accordance with the highest professional standards.

Under the SEC’s model manual, listed firms are required to install a process of selection of competent directors. An annual assessment should be made on the performance of the board’s effectiveness as a whole and that of the individual directors including the chief executive officer.

Listed firms are also asked to put in place an internal system including checks and balances which will apply in the first instance to the board, where power and authority are properly distributed and the process is free and open with sufficient and meaningful participation by independent outside directors.

They are also required to set up an audit committee, composed mainly of independent, outside directors who should be free to hire independent advisers when necessary.