SEC calls upon Listed Corporations Board Secretaries to play an lively function in Governance

The Securities and Change Fee of Sri Lanka (SEC) along with the Colombo Inventory Change (CSE) carried out two consciousness classes on the revised Company Governance Guidelines for Firm Secretaries/Board Secretaries of Listed Corporations final week.

SEC Chairman Faizal Salieh initiated the classes and the CSE’s Chief Regulatory Officer Renuke Wijayawardhane, made an in depth presentation of the revised guidelines. The classes have been interactive and supplied a platform for the Firm/Board Secretaries to know their function and duties within the context of excellent governance on the Board and Firm ranges.

The ‘Q & A’ panel consisted of SEC Chairman, Faizal Salieh, SEC Director Basic, Chinthaka Mendis, SEC Director Company Affairs, Manuri Weerasinghe, CSE Chief Govt Officer, Rajeeva Bandaranaike, CSE Chief Regulatory Officer, Renuke Wijayawardhane and CSE Senior Vice President Dealer Supervision and Listed Entity Compliance, Nilupa Perera. Senior Executives of SEC and CSE have been additionally current on the session.

The SEC Chairman highlighted the significance of the improved function and duties of the Firm/Board Secretary within the fashionable time, the contextual world tendencies, and referred to as for extra lively engagement from Firm/Board Secretaries in fostering good governance in Listed Firm Boards.

He said that the scope of the Board Secretary’s function has advanced and considerably expanded from the standard document retaining function to including worth to enhance the Board processes and offering help and recommendation to the Board Chair and different administrators within the follow of excellent governance on the Board degree and Firm degree.

The SEC Chairman mentioned that the modern-day Board Secretary is not anticipated to be a mere “note-taker” at Board conferences, a glorified stenographer, or an “administrative servant of the Board” however is anticipated to play an interesting function as a Board advisor, information to administrators, Board catalyst, Board planner and influencer with accountability and dedication in direction of guaranteeing sound governance practices on the Board degree. He mentioned the Board Secretary is the focal info level within the Board course of and will facilitate the correct and well timed circulation of knowledge from the Govt Administration to the Board Administrators, help the Chair in agenda setting, director communications and knowledge sharing.

Presenting the revised regulatory framework Wijayawardhane highlighted the significance of the function of the Board secretaries as advisors to the Board of Administrators in addition to the Govt Administration and said the requirement for the Board/Firm Secretaries to be acquainted with the relevant Guidelines and Rules in an effort to have interaction in such advisory function.

Adjustments to the Company Governance Guidelines have been launched below Part 9 of the CSE Itemizing Guidelines and these are relevant to the Corporations listed on the Fundamental Board, Diri Savi Board, Catalyst Board in addition to Corporations issuing debt securities besides these listed on the Empower Board.

Among the key modifications embrace specifying a minimal variety of administrators and Impartial Administrators for listed entities, necessities for CEO and Chairperson, appointment of a ‘Senior Impartial Director’ in sure particular situations, institution and operationalization of a Nomination and Governance Committee, change within the composition and capabilities relevant to the Audit, Remuneration and Associated Occasion Transaction Committees, introduction of Match and Correct standards for Board members and CEO, modifications to find out the standards for ‘independence’, appointment of Various Administrators, Institution and upkeep of Firm insurance policies, extra disclosure necessities on governance-related issues and so on.

The classes drew lively interactions among the many contributors and mentioned how the Board/Firm Secretary ought to relate their function to the governance necessities and develop into a value-adding match to the Board governance course of.

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