Governance is about people - Mangala Yapa

Ramani Kangaraarachchi

Companies and their boards can enhance better corporate governance recognizing that good corporate governance is about effectiveness of the governing body and not about compliance with codes, Colombo Dockyard CEO Mangala Yapa said.

Speaking on 20 practical steps to better corporate governance discussed by Corporate Secretaries International Association at the Bank Directors’ Symposium 2011 he said good governance is more about people than it is about procedures.

“Therefore, professional bodies need to ensure that there are enough people with the professional knowledge and skills to ensure that commonsense governance and not governance by mass regulation, prevails,” Yapa said.

He said reviewing board processes including the chairman’s leadership role, the balance and style of the board, the calibre and contribution of the outside directors, and monitor the board’s performance, and improving directors’ knowledge of the business and ensure they have the information they want. Other steps involve ensuring that directors’ remuneration packages are justifiable and justified, reviewing relations between the company and shareholders, particularly institutional investors and with auditors, regulators, and other stakeholders and, ensuring that the company secretarial function is providing value.

The major themes that emerged from the inputs of the panel of corporate governance experts were of the many opportunities for better governance to emerge from the ongoing global financial and economic crisis, he said.