FRC Encourages flexibility, economics performance in its new code of corporate governance 2018 - jerkand

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Friday, 15 June 2018

FRC Encourages flexibility, economics performance in its new code of corporate governance 2018



In order to encourage flexibility in operation, economic performance and to align with international best practices, the Board of FRC in January 18, 2018 constituted a fifteen-man technical committee comprising of representatives from regulatory agencies, industry professionals and experienced individuals with corporate governance expertise to obtained a better and detailed code of corporate governance for Nigeria.

Speaking to media men in Lagos, on the exposure draft of the Nigerian Code of Corporate Governance 2018, Head, Directorate of Corporate Governance, Financial Reporting Council (FRC) of Nigeria, Mr. Nelson Anumaka said that  we are all aware that in October 17, 2016, the Financial Reporting Council, in line with section 50 of the FRC Act, 2011, issued a two-in-one National Code of Corporate Governance for the Private Sector and Not-for-Profit Organisations. And in October 28, 2016, the Private Sector and Not-for-Profit Organisations Codes were suspended by the Federal Government.

Anumaka said that the committee was responsible for reviewing the suspended National Code of Corporate Governance 2016, considering the extensive public commentary received on the Private Sector Code, and come up with recommendations for the review and update of the code for the Board’s consideration. “The result of the Technical Committee therefore, is the proposed Nigerian Code of Corporate Governance which we are here today to present”.

In addition, Executive Secretary/Chief Executive Officer, FRC, Daniel Asapokhai, said, “It is our belief that this Code will promote ease of doing business, attract local and foreign investments and enhance the integrity of the Nigerian market by entrenching a culture of disclosure, transparency and accountability. Again he said that this Code will raise public awareness for essential corporate values, ethical practices and stakeholders’ confidence.”

Asapokhai further emphasized that the practices recommended in the code are flexible and scalable and can be applied by all organisations regardless of their size. He advised the companies that are governed by the Code to take advantage of the flexibility provided by the Code. According to Asapokhai, the Code consists of seven (7) parts and twenty-eight (28) principles, each with practices recommended by the  Code for their implementation.

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