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Good corporate governance, key to sound finances –Actis CEO

By on April 26, 2011

One of the leading private equity investors in emerging markets, Actis West Africa, has said that implementation of good corporate governance is a key to sound finances and optimum management of companies.

The Chief Executive Officer, Actis West Africa, Ngozi  Edozien, made this disclosure at the company’s second CEO breakfast forums organised to address issues and challenges associated with corporate governance and building an institution recently.

The event, entitled: ‘Institutionalising Your Business – A path to sustainable success’, was aimed at enlightening business leaders on the process and benefits of professionalising a business.

The programme also focused on the importance of building a professional organisation with the appropriate systems, human resources and governance standards to improve performance, valuation, access to financing and preparing for a listing in order to ensure the long term sustainability of the share price.

Actis and business executives from the Securities and Exchange Commission, Nigerian Stock Exchange, among others, discussed  the roles of the regulator in corporate governance practices, and the effects on performance management and systems.

They also examined the future of corporate governance in Nigeria and discussed corporate accountability, investors’ attraction to Nigeria and the challenges and rewards to businesses.

Edozien said corporate governance was one of the key factors that investors considered when making an investment decision.

“We find that companies who have focused on governance usually have sound finances, professional and capable management as well as a clear strategy and performance targets against which manag-ement is executing.  Numerous studies have shown that good corporate governance uplifts performance and share price,” Edozien said.

The Director-General of Securities and Exchange Commission (SEC), Ms. Arunma Oteh, speaking on the occasion, said that besides the proven fact that well governed companies performed better than their peers, “corporate governance immunizes nations and companies from the vagaries of financial crises and also engenders accountability, transparency and responsibility, and thereby creates better shareholder value.”

She also called on private companies to consider listing their shares on the Nigeria Stock Exchange given the inherent benefits of improved national and corporate profile, increased visibility and enhanced capital resource availability.

Source : Tribune