Economy

IFC opens corporate governance training for firm directors, managers

SCRIBE

Scribe Services partner Benard Kiragu. PHOTO | Diana ngila

Directors and top managers are set to undergo a voluntary two-day refresher training on new corporate governance rules from November 30 amid rising company failures due to malpractices.

The course is anchored on stringent Code of Corporate Governance Practices for Issuers of Securities to the Public 2015, which becomes effective in March 4 and requires firms to make good corporate governance an integral part of business dealings and culture.

International Finance Corporation (IFC) and Scribes Services, a corporate governance consultancy firm, are behind the training targeted at board chairs, directors, senior executives and company secretaries.

“Corporate disclosure and transparency are critical in safeguarding investments. And boards have a critical role to play on this front,” said Benard Kiragu, partner at Scribes Services.

The training will touch on the composition, independence of directors and their responsibilities, especially keeping management in check and protecting investors’ interests.

READ: Kenyan firms rank high in governance race

Executives will be taught the importance of setting ethical standards with boards expected to ensure their structures to verify and safeguard the integrity of financial reports.

The importance of timely and balanced disclosure of material information will also be the focus of the training, a critical plank in avoiding regulatory penalties.

Kenya Airways #ticker:KQ, Mumias Sugar #ticker:MSC, Imperial Bank and Uchumi Supermarkets #ticker:UCHM are some of listed companies which have been plunged into massive loss positions because of governance malpractices.

IFC reckons ethically run companies stands a better chance of attracting capital and cheaper loans as well as a market for their products.