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2017 Membership Subscription

MEMORANDUM FROM: SECRETARIATE (IoD-GH) TO: ALL MEMBERS   We take this opportunity to remind members to honour their obligations by Read More
Institute of Directors Ghana partners IFC on Corporate Governance

Institute of Directors Ghana partners IFC on Corporate Governance

  The Institute of Directors (IoD) Ghana is partnering the private sector arm of the World Bank, International Finance Corporation, Read More
Secrets of a good director

Secrets of a good director

Mr. Justice Awuku Sao, a chartered accountant, is a man who has a wealth of experience in the corporate setting. Read More
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16
Dec2015

Institute of Directors Ghana partners IFC on Corporate Governance

Institute of Directors Ghana partners IFC on Corporate Governance

  The Institute of Directors (IoD) Ghana is partnering the private sector arm of the World Bank, International Finance Corporation, IFC, to promote best practices in corporate governance among businesses...

16
Dec2015

Secrets of a good director

Secrets of a good director

Mr. Justice Awuku Sao, a chartered accountant, is a man who has a wealth of experience in the corporate setting. Currently, he is the Chief Executive, Institute of Directors-Ghana. In...

12
Dec2016

What corporate boards can learn from the Trump campaign

November 18, 2016 | By Ian Robertson Manage large shareholders like large states ‒ and don’t take core voters for granted As the dust settles and the circus leaves town, the unexpected...

12
Dec2016

Singapore is top corporate governance performer in Asia

October 4, 2016 | By Liana Cafolla Hong Kong penalized for lack of independent audit regulator Singapore leads Asia in corporate governance performance this year, beating previous winner Hong Kong, according to...

 Business Meeting

 

The Institute has instituted Bimonthly Business Meeting which will be launched on 15th August, 2017 at Alisa Hotel.

The overall purpose is to provide a platform to discuss corporate governance issues in Ghana and thereby unlock the potentials of Ghanaian companies.

The theme is "Stimulating Public-Private Sector Dialogue: The Place of Key Stakeholders in Leadership and Corporate Governance in the Accelerated Socio Economic Development of Ghana". 

MEMORANDUM

FROM: SECRETARIATE (IoD-GH)

TO: ALL MEMBERS

 

We take this opportunity to remind members to honour their obligations by paying their annual subscriptions for this year.

The fee payable is as follows:

  • Corporate members      -        GH1,000.00
  • Fellow                          -        GH500.00
  • Individual Members       -        GH300.00

Members who havent paid their remittance for 2016 are encourage to make payments in addition to 2017. List of members in good standings as at 31st December 2016 have been published on IOD's website. Click on the Membership tab and select Members Status (2016) to check your status. 

Please arrange to send your remittance to the Secretariate located on the 2nd floor Marble House building, South Industrial Area behind Toyota Ghana Limited, Accra or call any of the following numbers:

  • 026-811 2791
  • 024-8146176
  • 024-4980182 

NOTE: DIRECTORS GUIDE

The Second edition of the Institute’s maiden publication Best Practice Guide is available for sale.    

The price is GH¢40.00 per unit.

Members, who pay their subscriptions by 30th June, 2017 will receive complimentary copies.     

You may also make direct payment to the Institute of Directors - Ghana through:

Standard Charted Bank Ghana Limited, Liberia Road, Accra

Account No. 01 001 13333 400

 

Online payments is also available. Check IoD website (www.iodghana.com).

Please click on the link below to know the procedure for making online payments

VIEW ONLINE PAYMENT PROCEDURES 

 MTN MOBILE MONEY   AIRTEL MONEY visa cards

 

NB: Those who have already paid should ignore the memorandum

Signed

Michael Frimpong Okyere

For: Chief Executive Officer

                                     

Hong Kong penalized for lack of independent audit regulator

Singapore leads Asia in corporate governance performance this year, beating previous winner Hong Kong, according to CG Watch 2016, a bi-annual report assessing corporate governance performance produced by the Asian Corporate Governance Association (ACGA) and brokerage and investment group CLSA. 

After Singapore, countries are ranked: Hong Kong, Japan, Taiwan, Thailand, Malaysia, India, Korea, China, the Philippines and Indonesia. Australia, whose corporate governance score outperformed Singapore’s and which was included in the survey for the first time, was excluded to avoid skewing past results. 

ACGA secretary general Jamie Allen highlights Australia’s governance ecosystem as a model for Asia. ‘In contrast to Australia, the controlled and hierarchical management-shareholder communication system may become, if it does not evolve, a significant impediment to corporate governance and capital market development in Asia,’ he says in a statement.

Hong Kong, which was the top performer in 2014, lost out on the top spot mainly because of its lack of an independent audit regulator. The Hong Kong Institute of Certified Public Accountants serves as the regulator in Hong Kong, one of three countries ‒ along with India and the Philippines ‒ not to have independent audit regulators, says Allen.

CG Watch 2016 was released in Hong Kong on September 29, and assesses 1,047 companies and 12 countries in Asia-Pacific on their corporate governance performance. Its country assessments are based on performance in five areas: corporate governance rules and practices, enforcement, political and regulatory environment, accounting and auditing, and corporate governance culture.

Allen says corporate governance excellence depends on a well-functioning corporate governance ecosystem. ‘It is the collective interaction of all parties that delivers better outcomes,’ he explains. ‘Reforms also matter but how markets and companies respond and deliver them is crucial. A more robust ecosystem demands accountability and compliance, which in itself makes for better governance.’

Charles Yonts, CLSA head of sustainable research, says there is no proven link between better governance and higher share prices because of the broad range of factors that affect share prices, many of which are beyond the impact of governance. But strong fundamentals are linked to better governance, he adds.

‘Fundamentals and balance sheet are under management’s direct control and our analysis shows that better governance is associated with better fundamentals,’ Yonts expands. ‘CLSA analysis shows companies that achieve higher ESG scores perform better on earnings revision and payout while exhibiting better free cash flow quality and lower balance sheet risk. One could conclude that, over time, these companies would perform better.’  

Source: www.irmagazine.com 

 

Manage large shareholders like large states ‒ and don’t take core voters for granted

As the dust settles and the circus leaves town, the unexpected outcome of the US presidential election provides a cautionary tale for corporate directors encountering a shareholder vote.  

While Donald Trump’s campaign was widely regarded as undisciplined, unfocused and scattershot, the results speak for themselves. A decisive victory in one of the most heated campaigns in history reveals some important lessons for directors who will find themselves competing for the hearts and minds of proxy holders in the face of a shareholder activist, hostile bid, or even a contentious annual meeting. 

Directors need to think and act like the candidate, think of their company strategy as a campaign platform, and think of the movement of their stock as real-time polling data passing judgment on their performance. Most importantly they need to appoint a CCO – chief campaign officer – to oversee a finely tuned electoral machine.

It all starts with an accurate read of your electorate. While this may sound obvious, the value of stratifying shareholders along with voters is often underappreciated. For voters this is most commonly done on the basis of demographics or issues. In the case of shareholders it is important for management to understand that rarely are shareholders 100 percent with or 100 percent against you. There are variations within that spectrum that need to be identified and recognized so their unique concerns can be addressed directly. For example, perhaps they like the long-term strategy of the company but have an issue with this year’s compensation plan. In this situation directors may hold on to their seats on the board but be exposed on a say-on-pay vote.

Large shareholders are like Texas, California, Florida, Michigan and Ohio: their size gives them a big say in the outcome, and they need to be managed in a similar way. No presidential candidate would dream of showing up on election day and expect Ohio to fall his/her way, yet we see too many proxy votes where directors expect a preordained outcome at the ballot box.  Both Hillary Clinton and Trump made more than 25 visits to the state of Florida alone. Large shareholders can set the tone for the rest of your shareholder base, and long-term relationships with them well in advance of a vote are critical. Directors need to get active, hit the campaign trail and visit regularly with those proxy voters they need the most.

One of the most important voting blocks companies often fail to proactively address are those shareholders that follow the recommendations of the large proxy advisory firms. In some ways their role is analogous to the electoral college system. While some within a state ‒ let’s say Florida ‒ may support you, not enough support will provide a result that disproportionately affects the outcome. In the case of institutional shareholders, directors may find the portfolio managers who make the money decisions are supportive and are buying shares, yet the fund may have a policy of strictly following the recommendation of the proxy adviser. Like Florida’s 29 electoral votes, you may find a large shareholder suddenly stacked with or against you, regardless of what you thought the sentiment was.    

If one of these large blocks does go against you, a path to victory can be found by stitching together smaller, more ambiguous voter coalitions; as Trump demonstrated, it is possible to put together a coalition of hidden voters. In the case of a proxy vote, this means reaching out to the moms and pops who own your stock. These are people who have generally been left untouched by your company’s investor relations program, may have a different tolerance for your company’s underperformance if their life savings are on the line, and may never have cast a vote before. As Trump demonstrated, activating the hearts and minds of thousands who have been historically excluded from the process can mitigate the impact of a campaign surrounded by the biggest names in Hollywood.  

Of course, none of this matters if your voter doesn’t actually turn out. The key demographics Clinton counted on simply didn’t show up, especially in the places she expected to be the strongest. One of the most shocking yet common challenges we find is the number of company management and insiders who simply don’t vote their shares. The attitude ‒ like that demonstrated by Clinton supporters in the final days ‒ seems to be: it’s all well in hand, we’re so confident I don’t need to make an effort. Too many companies take their supporters for granted and fail to actually confirm a shareholder’s vote intention, whether or not it will actually vote and, eventually, whether it actually got its vote in.

In motivating that vote, personal brand plays a big part. Regardless of what you think of the specifics of the message, a case for change can be a compelling narrative, especially when it is coming from someone voters believe will do what he or she says. Despite his many faults, Trump is someone voters trust to stand up for them and make good on his promises. This trust factor escaped Clinton and was compounded by her delusive handling of email and health issues. Directors would do well to remember business decisions don’t come down to the information on the page, but how much you trust that information: delivering on your strategy, producing results, being transparent and taking time to build your personal capital with shareholders matters

Like the prevailing view of the Trump campaign, directors who dismiss an activist threat or shareholder opposition as ‘irrational’ or ‘misplaced’ will find themselves out of work if they fail to get the underlying mechanics of their campaign right.

Ian Robertson is executive vice president at Kingsdale Shareholder Services

Source: www.irmagazine.com 

Mr Awuku Sao
Mr. Justice Awuku Sao, a chartered accountant, is a man who has a wealth of experience in the corporate setting. Currently, he is the Chief Executive, Institute of Directors-Ghana. In this brief interview, he gave some insights as per how the society would be better off if men and women saddled with the management of corporate organizations, and indeed governance at various levels in Ghana, are mandated to undergo some directorship training.
 
Excerpts:
 
Not many people know about your organisation.
 
When the Commonwealth Heads of Government met in Edinburgh, Scotland in 1997, they reached a consensus to promote good corporate governance in all Commonwealth countries. An organisation known as Commonwealth Association for Corporate Governance (CACG) was set up as a machinery to achieve that purpose. At the invitation of the State Enterprises Commission, CACG was invited to run a training programme for directors in Ghana in June 1998. Upon completion of the training programme, participants resolved to form the Institute of Directors-Ghana. The Institute was therefore formed through the initiative of the State Enterprises Commission with the collaboration of the Commonwealth Association of Corporate Governance (CACG) and the Commonwealth Secretariat.

 
iodnewsphoto
The Institute of Directors (IoD) Ghana is partnering the private sector arm of the World Bank, International Finance Corporation, IFC, to promote best practices in corporate governance among businesses and institutions.  
The two organisations on Thursday, 5th November, 2015 organised a workshop to raise awareness on the benefits of corporate governance, the role of the director and how an effective board can collectively contribute to an effective economy.
President of the Institute of Directors (IoD), Ghana, Fredrick Ofosu Darko explained to JOY BUSINESS, the partnership would benefit not only businesses but an economy as a whole.
“We are looking at where corporate directors will adopt best practices for corporate governance purposes which will then enhance performances of companies and bring prosperity. If you have best practices adopted by companies, CEO’s and others, they raise the company’s tendency to do well. Apart from that also you have a trickledown effect on the economy as a whole” he said.
Resource persons and participants at the workshop called for the creation of a harmonized corporate-governance code for businesses in the country. This, they believe has become important to enhance governance structures in local businesses and thereby attract the needed foreign investments.