Cap. 10:31
Punuc
El'<'lTnES CoRPoRATE GovERNANCE
No. 4/2018
3. The enabling instruments under which public entities operate should allow
streamlined operational practices. They should allow creditors to press their claims
and to initiate insolvency procedures.
4. Any obligations and responsibilities that a public entity is required to undertake
in terms of public services beyond the generally accepted norm should be clearly
mandated by law. Such obligations and responsibilities should also be disclosed to the
general public and related costs should be covered in a transparent manner.
5. Public entities should not be exempt from the application of the general law.
Stakeholders, including competitors, should have access to efficient redress and an
even-handed ruling •.vhen they consider that their rights have been violated.
6. Public entities should have sufficient flexibility for adjustments in their capital
structure when this is necessary for achieving their objectives.
7. Public entities should face competitive conditions regarding access to finance.
Their relations with State-owned banks, State-owned financial institutions and other
public entities should be based on purely cormnercial grounds.
8. The responsible .t\1inister should develop and issue a policy that defines the
overall objectives of the State's role in the corporate governance of the public entities
for which he or she is responsible, and defines how the State will implement these
objectives.
9. In compliance with section51A ("Separation of roles of appropriate Ministries
and public entities') of the Public Finance Management Act [Chapter 22:19], the
Government must(a) not be involved in the day-to-day management of public entities and
should allow them full operational autonomy to achieve their defined
objectives;
(b) let boards of public entities exercise their responsibilities and should
respect their independence.
10. The Government as an active owner of its public entities should exercise its
ownership rights according to the legal structure of each entity. Its prime responsibilities
include(a) in relation to public entities that are companies(i) being represented at shareholders' meetings and exercising its votes;
and
(ii) establishing well-structured and transparent nomination processes
for the election of board members, and actively participating in those
processes;
(b)
in relation to all public entities(i) setting up reporting systems allowing regular monitoring and
assessment of the performance of public entities; and
(ii) when petmitted by the Government's level of mvnership, liaising
continuously with extemal auditors and other institutions of control;
and
(iii) ensuring that the remunemtion of board members foster the long-tetm
interests of the public entities and can attract and motivate qualified
professionals.
PART II
EQUITABLE TREATMTh'T OF MINORITY SHAREHOLDERS
12. In this Part"minority shareholder" means a person or party, other than the Govemment,
that has an interest in a public entity, whether as a shareholder, a partner
or othenvise.
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