The Registrar General Department has revised the Companies’ Code by inserting a clause and laid it before parliament making it obligatory for directors in both public and private institutions to have training and certification in corporate governance.
This has become necessary due to the effects of some serious infractions on corporate governance principles and its undesirable negative effects on the socio-economic dynamics across all sectors of the economy.
Such corporate governance infractions have resulted in the recent collapse of seven indigenous banks, the rot in football administration, and the turbulence in academia, including student riots
The review of the Companies’ Code follows a call made by the Institute of Directors (IoD) on the need to have strategic interventions to stimulate and sustain the culture of good corporate governance and effective leadership in the country.
It will be recalled that in September, 2018, IoD made a call aimed at establishing a corporate governance index to measure the strength of corporate governance practices.
Speaking to the Goldstreet Business, president of IoD, Mr. Rockson Dogbegah said the step taken by his outfit to cause the Registrar Generals Department to review the Companies’ code will bring strategic enhancement in corporate governance practices in the country.
“It’s been laid before parliament and currently going through consultative phase. We expect that it will be passed”, Mr. Dogbegah said during the maiden edition of the National Corporate Governance Conference and Awards of directors week celebrations in Accra.
Among some people and institutions awarded during the ceremony owing to their distinguished roles in their line of duty were the Guest of Honour for the occasion, Dr. Ernest Addison, Governor of Bank of Ghana (BoG), late Supreme Court Judge, V.C.R.A.C. Crabbe, Prof. John Aheto, Ghana Television, Citi FM and lots others.
The IoD is a professional institution established in 1999 to promote good corporate governance in Ghana through training, consultancy & advisory services, research and advocacy. Among the organizations supporting their activities are Star Ghana, and the International Finance Corporation.
By Dundas Whigham