Workshop focuses on new Code of Corporate Governance for Mauritius

The new Code of Corporate Governance for Mauritius was the focus of a one-day workshop, held today at Cyber Tower 1 in Ebène at the initiative of the Ministry of Energy and Public Utilities and the Mauritius Institute of Directors (MIoD). The Deputy Prime Minister and Minister of Energy and Public Utilities, Ivan Collendavelloo, was present at the event.

Around 50 directors, chairmen, Chief Executive Officers and General Managers of key corporate bodies falling under the Ministry of Energy and Public Utilities attended this event. The training was conducted by Dr Chris Pierce, CEO of Global Governance Services Ltd in the UK. He is a global consultant working with policy makers, directors and boards all over the world. His company, set up in 2004, specializes in corporate governance advisory and development services as well as producing national codes and standards.

In his address, the Deputy Prime Minister stated that at the national level, the Government is poised to make of Mauritius a world-class financial leader. He pointed out that the Global Competitive Index Report of 2017-2018 places Mauritius at rank 45 out of 137 economies while adding that the Ibrahim Index of African Governance ranks Mauritius No 1 in Africa. As regards corruption, he said that the country ranked 2nd best on corruption investigation, 9th in corruption in Government and public officials and 2nd in corruption and bureaucracy, which shows that the country fared very well on corruption indices.

According to Ivan Collendavelloo, there is a need to input governance standards at all levels so that Mauritius can raise in international standards. He emphasized that governance is not a mere matter of preventing corrupt practices, avoiding financial scams, presenting healthy financial statements or improving financial standards. Governance is also a question of addressing poverty, reducing social inequalities, gender equality and generally improving the wellness of our people, he highlighted.

Dr Chris Pierce, for his part, stated that although Mauritius has been ranked 1st on the Mo Ibrahim Index for the 11th year in a row, the country should not become complacent and should improve on innovation, education, and government bureaucracy.

The new Code of Corporate Governance for Mauritius

The new Code of Corporate Governance was launched on 13th February 2017. The Code comprises a set of principles and guidance aimed at improving and guiding the governance practices of organisations within Mauritius. It forms part of a larger body of existing laws, rules, regulations, principles and best practices that include laws of Mauritius; regulations; listing rules; standards, guidelines and codes of best practice; corporate rules and provisions; and formal documents within an organization.

Using an “apply and explain” methodology, the Code aims to encourage high-quality corporate governance with inbuilt flexibility that allows organizations to adapt their practices to their particular circumstances. It emphasizes the need for boards to focus on the effective performance of their key tasks.

The Code covers eight governance principles applicable to all organizations covered by the Code. They are: governance structure; structure of the Board and its committees; Director appointment procedures; Director duties, remuneration and performance; risk governance and internal control; reporting with integrity; audit; relations with shareholders and other key stakeholders.