Public Service and Public Enterprises permanent secretary Parmesh Chand warned newly-appointed State entity board directors that every decision made at the top-level was associated with some type of risk.
While addressing newly-appointed board directors at the Corporate Governance Workshop at Novotel Lami recently, he said it was critical that company directors understood their roles and responsibilities and the possible risks that lay ahead.
“In today’s business environment, there is more onus placed on board directors. Every decision made at the top level is associated with some type of risk,” Mr Chand said.
“In the local scene, you must be aware that there was a crimes decree which turned into Crimes Act in 2009.
“The Crimes Act 2009 places enormous responsibilities on directors, so it is incumbent on those in such positions to ensure there are full disclosures, you are properly briefed and made aware of risks and how best they could be mitigated.
“As such, we implore you to conduct yourself professionally and consciously at all times.
“You need to take your role seriously and you should ask your fellow directors as well as management for full disclosures on issues before you make a decision.”
He said with the assistance of ADB (Asian Development Bank), the workshop was one of the many efforts to upskill company directors to understand the principles of good governance, risk management, duties and responsibilities of a director, and key competencies required to effectively undertake role of a company director.
“Good corporate governance practices instil in companies the essential vision, processes, and structures to make decisions that ensure long-term sustainability.
“In general, every decision a company makes and every initiative it institutes, must be soundly based, not just in the pragmatic of profit but in high ethical standards.”
