MANILA, Philippines - The Securities and Exchange Commission (SEC) has come up with an updated list of accredited training providers to help improve listed companies’ capacity to protect the rights of minority shareholders and small investors.
In a memorandum circular, the corporate watchdog added three entities that can be tapped by listed firms for corporate governance training.
Specifically, the SEC said Philippine Securities Consultancy Corp., Management Association of the Philippines and Center for Global Best Practices Foundation Inc. are all accredited training providers.
The Philippine Stock Exchange (PSE) defines corporate governance as “the framework of rules, systems and processes that governs the performance by the board of directors and management of their respective duties and responsibilities to the stockholders, with due regard to the stakeholders.â€
Last year, the SEC accredited the Institute of Corporate Directors, Ateneo de Manila Center for Continuing Education, SGV & Co., and Risks, Opportunities Assessment and Management Inc. as corporate governance training providers.
“The Commission, pursuant to its regulatory and supervisory power under the Securities Regulation Code, hereby directs all key officers and members of the board of publicly-listed companies to attend, at least once a year, a program on corporate governance conducted by training provides that are duly accredited by the Commission,†SEC said in a memorandum circular released last year.
Participants, through listed firms, are also required to submit a certificate of attendance within 10 days from the completion of the corporate governance training program.
The operator of the country’s stock exchange, through the PSE Bell Awards, recognizes companies and trading participants that exerted efforts to promote investor protection.
“Good governance remains to be one of the reasons why the country is getting a lot of interest from investors,†said PSE president and CEO Hans B. Sicat.
“Through the PSE Bell Awards, we are telling the global investing community that good governance is supported and adhered to across all sectors of the economy including businesses and the private sector,†Sicat added.
The PSE Bell Awards, one of the cornerstone activities of the PSE to promote good governance practices among listed companies and trading participants, is scheduled on Nov. 10.
Under the corporate governance rules, listed companies will be assessed based on their compliance with the PSE’s Corporate Governance Guidelines for Listed Companies, which sets standards for, among others, a sound business strategy, an effective board of directors and policies to protect shareholders rights.
Trading participants, for their part, will be evaluated based on their compliance record, effective organizational structure and sound internal controls as audited by the Capital Markets Integrity Corp.