PSE wants to make PHL leader in good corporate governance
MANILA – With the old year about to close out in a few days’ time, the Philippine Stock Exchange (PSE) said it will not falter in its vision of turning the country into a model of good corporate governance in the Southeast Asian region.
With this development in mind, the stock regulator recently passed its Corporate Governance (CG) guidelines for listed firms, enabling prospective investors to be updated about the compliance of listed firms in good corporate governance.
The PSE defines corporate governance as the framework of rules, systems and processes that governs the performance by the board of directors and management of their respective duties and responsibilities to the stockholders with due regard to the stakeholders.
As a key initiative in its Corporate Governance Improvement Program (CGIP), the PSE’s CG guidelines for publicly-listed firms complements the Code of Corporate Governance of the Securities and Exchange Commission (SEC) which define the concepts and best practices that characterize a well-governed listed corporation.
“Good corporate governance is the battle cry across developed and emerging markets in Asia. The dynamic financial and economic landscape that drove innovation through most of the decade has been tested by the recent financial crises,” PSE chairman Hans B. Sicat said.
Sicat encouraged companies to adopt the guidelines. The same guidelines will govern the operations of the PSE.
The PSE board of directors approved the CG guidelines this year which aims to motivate listed companies to improve their good governance practices and to inform investors of such practices among issuers as a basis for their investment decisions.
The guidelines were developed after a careful review and assessment of internationally-recognized corporate governance codes and best practices as well as a rigorous local and regional stakeholder engagement process.
These are designed to guide listed corporations as they endeavor to improve their corporate governance practices.
They are also a basis for the benchmarking of practices of listed firms and the monitoring of progress.
It also serve as a basis for future rule development as well as policy and legislative reform initiatives.
“As a key emerging economy and one of the largest markets in South East Asia, we believe the Philippines is a good place to do business. Improved corporate governance practices in the country will improve the Philippines’ competitive edge. That’s crucial to boosting economic growth, to provide more jobs for Filipinos,” the PSE said in a statement.*PNA
