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FRC sets new dates for public hearing on Corporate Governance Code

By on June 24, 2015

The Financial Reporting Council of Nigeria (FRC) has set new dates for public hearing on the proposed uniform code of corporate governance in Nigeria.

The new dates disclosed by FRC’s spokesman, Mr. Mack Ogbamosa, in a statement are June 30 for code for public and private sectors and July 2 for not-for-profit organisations.

According to him, the new dates were sequel to lifting of an exparte injunction restraining the FRC from proceeding with the public hearing by a Federal High Court sitting in Lagos.

Justice O.E. Abang’s Court had earlier granted the injunction following an exparte motion by a group of shareholders who objected to certain provisions in the proposed new uniform code of corporate governance.

The statement revealed that the court had varied the exparte order following its concurrence with the objection of the counsel to FRC Dr Fabian Ajogwu (SAN).

The public hearing was supposed to start on May 19 before the injunction.

When adopted, the new uniform code of corporate governance will replace the six codes currently in operation.

Identifying the benefits of the uniform code of corporate governance, Ogbamosa said it would lead to increased management credibility, more long term investments, lower cost of capital, improved access to new capital and higher share values.

“For foreign investors, local investors and lenders, better disclosure provides more relevant information for making sound investment decisions and risk assessment respectively. It is obvious to all now that financial statements published by entities in Nigeria are fuller; with more disclosures of the activities of the companies they have invested in. As such, the risk of loss of their investments is low because the activities in the capital market are driven by informed decisions,” he added.

He also disclosed that there was no uniform code of corporate governance before now as six different bodies – the Central Bank of Nigeria( CBN), Nigeria Deposit Insurance Corporation (NDIC),  National Insurance Commission (NAICOM),  Pension  Commission (PENCOM),Securities and Exchange Commission ( SEC), Corporate Affairs Commission (CAC )and Nigerian Communications Commission (NCC)- were responsible for codes which were not backed by  sanctions.

 

[ThisDay]