Scribe Services partner Benard Kiragu. PHOTO | Diana ngila
Directors and top managers are set to undergo a voluntary
two-day refresher training on new corporate governance rules from
November 30 amid rising company failures due to malpractices.
The
course is anchored on stringent Code of Corporate Governance Practices
for Issuers of Securities to the Public 2015, which becomes effective in
March 4 and requires firms to make good corporate governance an
integral part of business dealings and culture.
International
Finance Corporation (IFC) and Scribes Services, a corporate governance
consultancy firm, are behind the training targeted at board chairs,
directors, senior executives and company secretaries.
“Corporate
disclosure and transparency are critical in safeguarding investments.
And boards have a critical role to play on this front,” said Benard
Kiragu, partner at Scribes Services.
The training will
touch on the composition, independence of directors and their
responsibilities, especially keeping management in check and protecting
investors’ interests.
Executives
will be taught the importance of setting ethical standards with boards
expected to ensure their structures to verify and safeguard the
integrity of financial reports.
The importance of timely and balanced disclosure of material
information will also be the focus of the training, a critical plank in
avoiding regulatory penalties.
Kenya Airways
, Mumias Sugar , Imperial Bank and Uchumi Supermarkets
are some of listed companies which have been plunged into massive loss positions because of governance malpractices.
IFC
reckons ethically run companies stands a better chance of attracting
capital and cheaper loans as well as a market for their products.
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