Minister Samuda Welcomes Updated PSOJ Corporate Governance Code

Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Karl Samuda, has welcomed the launch of the Private Sector Organisation of Jamaica (PSOJ) Corporate Governance Code, which creates a framework to facilitate increased growth.

He said the updated code is being launched in an environment of growing business confidence and where there is firm commitment by both the Government and private sector to laying the groundwork for sustained economic progress.

“Corporate governance has an impact on growth and development in a number of ways, including, but not limited to, increased access to external financing by firms. This can lead to greater investment, higher growth and greater employment creation, lower costs and greater accessibility to capital for investments, particularly for the micro, small and medium sector,” Mr. Samuda said.

He was addressing the launch ceremony held yesterday (December 1) at the PSOJ’s Hope Road offices.

The Code facilitates implementation of best practices and provides entities with a framework to support the implementation and monitoring of principles and policies to improve accountability and transparency.

Vice President of the PSOJ, Dennis Cohen said the Code is being targeted at medium and large-sized businesses.

“The PSOJ believes that this updated governance framework should further strengthen the corporate governance practices of businesses, while assisting our members in developing their specific corporate governance structures in line with international best practices,” he said.

He noted that the Code has been tailored to reflect the accepted governance practices globally, while maintaining relevance to the local business environment.

“As such, the 2016 Code should increase investor confidence, decrease the cost of capital, while facilitating greater access to the capital market… a framework that we think will add significantly to the growth and development of Jamaica,” he added.

Chair of the PSOJ Corporate Governance Committee, Greta Bogues, said the Code focuses on key principles, such as appointment of directors, their role, board effectiveness, remuneration, disclosure, relationship with shareholders, accountability and audit.

“Each section has a main principle, which is reinforced by supporting principles and then followed by code provisions, which really give full details on how the principles should be implemented,” Ms. Bogues indicated.

She informed that the new principle of corporate sustainability and ethics has been added, which covers areas such as bribery and corruption, whistle-blowing, and political lobbying.

“We are really delighted about this new principle, which includes a lot of what has been taking place globally,” she said.

In 2001, the PSOJ created the first Corporate Governance Code in Jamaica, and the Caribbean region, which was updated in 2009.