Poor corporate governance detrimental

THE absence of good corporate governance can present much discomfort for capital markets and investors as a whole.

That’s according to Marlon Yarde, the General Manager of the Barbados Stock Exchange. He made the comments while highlighting the significance of corporate governance and the importance of the Caribbean Corporate Governance Institute (CCGI).

Yarde said that even if the company is not listed on a stock exchange, poor corporate governance within that organisation will have a negative impact.

Yarde said that the purpose of the CCGI is to have effective organisation and to add value to its stakeholders.

“We know Directors of companies have fiduciary duties duty of care to the company itself, but what we are seeing more and more in corporate governance is all stakeholders – employees, creditors, the society as a whole – corporate responsibility is very much to the core,” said Yarde.

He also said that what is required is trust, which must come from the competence and value that directors have, education, rules and regulations. There must also be standards and guidelines for persons, he said.

According to Yarde, “You cannot legislate good behaviour. People have to be coming from a position of integrity and wanting to do the right thing.”

Yarde said that the BSE is a member of the Caribbean Corporate Governance Institute, and a strong supporter of corporate governance.

He said that each year the BSE hosts a conference on the subject. The next one is scheduled for September this year.

Yarde said that in 2014, they at the BSE put in place their Corporate Governance recommendations for listed companies.

The main purpose for the Corporate Governance for the BSE is to harmonise the practices of listed companies, improve transparency, provide basis for consistency for information to shareholders, and to improve the quality of disclosure of accountability to the investing public as a whole. (JB)