CSE calls for voluntary adoption of new governance code
Thursday, 24 October 2013 00:48
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The Colombo Stock Exchange (CSE) has requested all listed companies to adopt on a voluntary basis the new Code of Best Practice on Corporate Governance introduced jointly by the Securities and Exchange Commission (SEC) and the Chartered Accountants Sri Lanka.
The new Code was launched in September 2013 and CSE has said listed companies may adopt it on or after
1 January 2014.
The Code deals with best practices for boards of directors – the board, chairman and CEO, chairman’s role, financial acumen, board balance, supply of information, appointments to the board, re-election, appraisal of board performance, disclosure of information in respect of directors, appraisal of CEO; directors’ remuneration, relations with shareholders, accountability and audit; shareholders – institutional investors and other investors; and sustainability reporting.
The new code is available on the CSE website www.cse.lk. The first edition of the Code titled ‘Best Practice on Matters Related to Financial Aspects of Corporate Governance’ was released in 2007. Thereafter there have been three editions.
