The Nigerian Stock Exchange (NSE) and the Convention on Business Integrity (CBi) Thursday, announced the inauguration of the Steering Board of the Corporate Governance Rating System (CGRS), which held its maiden meeting on December 12, 2017.
The CBi, a company limited by Guarantee was established in
1997 with the aim of promoting ethical business practices, transparency and fair competition in the private and public sectors. Its mission is to empower people, their transactions, systems and institutions against corruption.
The Steering Board is the governing body of the CGRS, defining its scope, guiding its development and its ultimate authority. It is charged with the responsibility of reviewing and endorsing all acts performed by other bodies and sub-committees of the CGRS and approving the release of the results of the CGRS exercise.
The Board comprises of six members, two representatives of CBi, a representative of the NSE, the media, a representative of rating agencies and a representative of the Securities and Exchange Commission (SEC).
At the inaugural meeting, the Steering Board began the review of the outcome of the roll out phase of the CGRS. The results of the roll out phase will be announced in January 2018 and a certification ceremony will be held for all successful companies and eligible directors in February 2018. The certification ceremony will showcase the successful companies and their directors that have distinguished themselves as entities and individuals with high standards of corporate governance.
The companies and their directors will also be issued with certificates confirming their CGRS certifications.
According to Soji Apampa, Chief Executive Officer, CBi “with the conclusion of this first cycle of the process, deep lessons are emerging regarding decision making of boards and the impact of such decisions on firm performance. There are correlations between quality of governance and various indices that investors would consider important. We look forward to celebrating the companies that have distinguished themselves and the beginning of a new cycle of the CGRS certification which will be announced in due course so that listed companies that did not participate in the current cycle as well as companies that did not complete the process would have the opportunity take part and be
Also commenting, Tinuade Awe, General Counsel and Head of Regulation, NSE said “we are excited to have gotten to this final stage of the first CGRS roll out process for all companies listed on the Main and Premium Boards of the NSE. The CGRS certification is a thing of immense pride for the successful companies and directors involved, especially given the stringent requirements of the certification process. The NSE remains resolute in its long term commitment to promoting corporate governance, including through the collaboration with CBi on the CGRS.”
The CBi and NSE will continue to keep the public apprised of developments at the Steering Board.