Capital Markets Authority (CMA) has backed a two-day training on new corporate governance rules from Tuesday as firms struggle to meet regulatory board and transparency rules.
The markets regulator said it would participate in the training anchored on stringent corporate governance rules that demand disclosure of directors’ pay, term limits, adoption of a code of ethics and review of board composition.
The course will train executives and directors on managing conflict of interest, interrogating board reports to identify red flags in their firms, board’s role in growing and defending shareholder wealth and their risk management strategy.
International Finance Corporation (IFC) and Scribes Services, a corporate governance consultancy are behind the training targeting board chairpersons, directors, senior executives and company secretaries.
“The authority supports Scribes Services in the implementation of the code of corporate governance,” said the CMA.
The training comes after nearly half of the companies listed on the Nairobi Securities Exchange last year failed to meet regulatory corporate governance tests, exposing the risk of capital loss that investors face.
“Corporate disclosure and transparency are critical in safeguarding investments. The training enlightens directors on how to better serve corporates,” said Benard Kiragu, partner at Scribes Services.