By Nkiruka Nnorom
The Securities and Exchange Commission, SEC, will commence the implementation of Corporate Governance, CG Scorecard for public companies in January 2017. The CG Scorecard was developed in 2014 and launched in 2015 by SEC in collaboration with the International Finance Corporation, IFC, to strengthen integrity in the capital market.
Following the launch, both institutions have jointly trained various stakeholders to prepare for implementation. These stakeholders include Chief Finance Officers, CFOs, company secretaries, audit committee and board chairpersons.
The Commission disclosed that the training sessions generated awareness for the new disclosure requirements of SEC, saying that the disclosures would be used annually to assess corporate governance practices of listed companies in the country.
The standardised scorecard, according to SEC in a statement, will identify strong performers through enhanced disclosure, strengthen investor confidence and encourage foreign investments in the country. Corporate governance refers to the structures and processes by which companies are directed and controlled that makes companies become more accountable and transparent to investors. This encourages new investments, boosts economic growth, and provides employment opportunities.