EO Readied to Promote Corporate Governance
Borja, Ryan G., Manila Bulletin
The Securities and Exchange Commission (SEC) and the Capital Market Development Council (CMDC) are jointly pushing for the adoption of an executive order for the promotion and implementation of corporate governance reform measures in the country.
The SEC and CMDC likewise implored the private sector to cooperate with government in the institutionalization of a corporate governance reform program.
SEC chairperson Lilia R. Bautista in a press briefing over the weekend said while several actions have been made, decisive implementation of good corporate governance practice must be worked out for the speedy recovery of confidence in our investment climate.
"We would like the Philippines in the forefront of corporate governance reforms in our region, where we have to compete against other economies that are already moving fast in introducing corporate governance reforms," Bautista said.
The recent East Asian crisis, according to CMDC, highlighted the importance of the corporate governance practice, the legal and regulatory framework for companies and banking institutions and transparency and disclosure rules in securing investor confidence and in sustaining high rates of economic growth.
Major provisions of the Securities Regulation Code (SRC), aimed to strengthen corporate governance, include the demutualization (public listing) of the Philippine Stock Exchange; the protection of minority shareholders; and the election of at least two independent directors to the board of the public corporation
The PSE's conversion to a stock corporation, on the other hand, subject it to greater market discipline and strengthen the investing public's external control over the stock exchange. …