Malawi Stock Exchange (MSE) on Tuesday engaged firms on the role of corporate governance.
Speaking on the sidelines of the event in Blantyre, MSE chief executive officer John Kamanga said corporate governance is key in ensuring transparency and timely disclosure of information for well informed decision-making for stakeholders.
He said for listed firms, listing requirements gives them time-frame to publish their accounts within a stipulated time, to allow for shareholders and investors to make informed decisions.
Kamanga said: “However, there are some shortfalls. One of the issues is board composition , which is paramount because corporate governance is about structure and systems you have put in place to steer the company for the benefit of shareholders.
“The other aspectis in terms of disclosure and reporting. Without corporate governance, you wouldn’t get timely information, wouldn’t know where you are going and coming from.”
Kamanga disclosed that corporate governance rules for listed firms require that no person serves in two boards at the same time, observing that in such circumstances, companies have been notified and given time to make proper changes.
C u r r e n t l y, c o r p o r a t e governance expert Jimmy Lipunga is ser ving in the Illovo Sugar (Malawi) plc and National Bank of Malawi plc as board chairperson, a situation which Kamanga said is being reviewed in respect of the listing requirements.
Kamanga also disclosed that having demonstrated positive performance and operational efficiency, crowning Malawi as one of the best stock markets in Africa registered, MSE is now attracting a lot of foreign investors.
“But we don’t have a product. We are engaging business-to- business meetings with potential companies PressCane, State-owned companies and Malawi Sun.”
On his part, Press Cane Limited chief executive officer Bryson Mkhomaanthu said they are exploring opportunities for share listing and that the issue is under discussion with the company’s shareholders.
