Corporate Governance Code up for revision
The International Finance Corp. (IFC) and the Securities and Exchange Commission have agreed to strengthen the country’s corporate governance practices through the revision of the Corporate Governance Code.
In a statement, the IFC said it has signed a memorandum of understanding with the SEC to cooperate on the revision of the code and to set best practices for Philippine firms.
IFC would facilitate the exchange of information on regulatory reforms between SEC officials and international corporate governance experts.
Numerous studies report that investors have greater confidence in companies with good governance and in markets that are backed by sound legal and regulatory regimes, said the IFC.
The IFC is a member of the World Bank Group focusing on financing private sector ventures and providing financial advice.
Citing a 2002 survey, it said institutions are willing to pay premium to own well- governed companies in Asia and Latin America.
“More foreign investments will create jobs, strengthen the business environment, and improve private sector efficacy,” said IFC.
It said it would provide training to commission officials to help them enhance the country’s corporate governance legal framework and advise them on draft laws and regulations.
IFC would also help the SEC organize corporate governance seminars and workshops for Philippine companies.
“By adopting good corporate governance policies, Philippine companies can enhance their competitiveness and attract foreign investment to fund their growth,” said Jane Yuan Xu, IFC Philippines country manager.
“This will help build a vibrant private sector and lead to sustainable economic development in the Philippines,” she added.
The partnership is part of a country program launched by the IFC recently to support the country’s efforts to enhance corporate governance.
IFC has contributed to the adoption of 95 corporate governance codes, laws and regulations in more than 30 countries worldwide. Its corporate governance program in East Asia and the Pacific is funded by the State Secretariat for Economic Affairs of Switzerland.