POLICIES for DEVELOPING GOOD CORPORATE GOVERNANCE PRACTICES

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POLICIES for DEVELOPING GOOD CORPORATE GOVERNANCE
PRACTICES
Demir Yener Team Leader Human Capital
Development- TAPRII BearingPoint, Inc.
Cairo, March 14, 2006
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Operationalizing Corporate Governance Programs

• institutional reform
• capacity building
• training and public education.

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Essential Institutional Frameworks

• Effectively enforced rule of law
• Clear accounting standards
• Well defined property rights
• Underlying values of corporate governance
• Transparency
• Accountability
• Responsibility
• Fairness

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Operational Components of a Corporate Governance
Program

• Conflict of Interest Between Shareholders and
  Management
• Growth
• Institutionalization of enterprises
• Broader field of players -- Stakeholders

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CG Development Activities

• Legal reform and judicial training,
• Civil society development (business associations
  and shareholder rights groups),
• Bankruptcy reform,
• Transparency Risk implications of corporate
  capital structure (debt and equity composition of
  corporate capital) on governance,
• Disclosure better compliance with international
  accounting standards and training,
• Anti-corruption efforts Corporate Governance is
  the Antidote to Corruption
• Management and leadership training,
• Consulting capacity development,
• Institutionalization of the business community
• Will result in increased access to finance.

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Methods of Delivery

• regional training programs,
• grants programs,
• certification, such as directors training,
• management education programs,
• institution building efforts,
• technical assistance to regulatory and
  legislative reforms.

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Overarching objectives of a CG Development
Program

• To identify corporate governance benchmarks for
  publicly traded and non-public corporations.
• To identify key priorities in corporate
  governance and related issues for the government
  and the business community.
• To communicate key needs and concerns of main
  groups involved in corporate governance to
  policymakers, and to recommend improvements in
  government policies and laws.

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Strategies for Corporate Governance Reform 1

• 1. Institution Building and Policy Frameworks on
  Regulatory Reform
• a. Forums
• Corporate Governance Roundtables
• Institution Building
• b. Task Force on Corporate Governance and
  Shareholders
• Rights.
• Investment Communities.
• Legislation.
• Joint Stock Company Law
• Accounting and Auditing Law,
• Securities and Stock Exchange Law
• Laws on Collective Investment Institutions.

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Strategies for Corporate Governance Reform 2

• 2. Capacity Building Supporting Transparency and
  Accountability.
• Corporate Governance Rating Agency
• Shareholder Protection Organizations.
• Public Information Networks.
• External Financing Programs

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Strategies for Corporate Governance Reform 3

• 3. Public Education and Training
• Develop curricula,
• Develop faculty capacity,
• Generate educational materials including texts
  and cases
• Public education campaigns

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Lessons learned and recommendations

• Corporate governance is a public policy concern
  that is critical to economic growth.
• Legal and regulatory institutions and frameworks.
  
• Actions must be taken by Private Sector.
• Public education a must