National Code on Corporate Governance under review

The committee on the National Code on Corporate Governance says it is reviewing the final draft document and is optimistic that the code will be launched this year following failure to meet the October 2012 target.

The long awaited national code is aimed at increasing accountability and maximising shareholder value.

The committee tasked to come up with the code has cited resource constraints and the need to incorporate broader views into the framework as the major reasons for the delayed launch of the policy.

National Code on Corporate Governance Chairman, Canaan Dube said the document, which is currently at the editing stage, will be launched early this year and expressed confidence that the policy will improve corporate performance.

Businessman, Phanuel Gukwe urged the committee to show its sincerity in ensuring that the project comes to conclusion, adding that most of the challenges that companies are facing are due to the absence of a sound corporate governance framework and strategic leadership.

Among some of the areas dealt with in the National Code are the tenure of directors and board chairpersons, separation of the chief executive officer and board chairperson's roles, shareholders's influence on the running of companies, interparty business transactions as well as accountable administration of community trusts.

Zimbabwe is one of the few countries on the continent still to have a National Code on corporate governance.

Other countries in the region such as South Africa and Malawi have put in place sound corporate governance policies.

Comments