© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Structuring Success:  Corporate Governance Within Papua New Guinea
Posted 8th April 2015

Structuring Success: Corporate Governance Within Papua New Guinea

Corporate Governance in Papua New Guinea leaves much to be desired, particularly in the government sector and the many ‘State Owned Enterprises’.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Structuring Success: Corporate Governance Within Papua New Guinea
Image

Structuring Success: Corporate Governance Within Papua New Guinea

Corporate Governance in Papua New Guinea leaves much to be desired, particularly in the government sector and the many ‘State Owned Enterprises’. We spoke to Ray Clark Consultants about the challenges and opportunities developing in the region.

Ray Clark Consultants was established in 2012 to provide services that enhance the standards of corporate governance in Papua New Guinea. Since then, we have developed some unique methodologies for Board and Corporate Governance assessment and Director Performance evaluation that have global relevance. After considerable research of the 100 or so Codes in place throughout the world, we have also drafted a PNG National Code of Corporate Governance that, whilst generally supported by professional and private sector groups, is still awaiting government comment. With PNG being 145th on the Transparency International Corruption Index, such a document to provide CG standards throughout the Country is considered imperative.

Ray Clark, the Managing Director of our company, is a seasoned Director who has been on numerous Boards in Australia and Papua New Guinea over the past 30 years. In 2000, he was instrumental in establishing the PNG Institute of Directors (PNGID). Here he developed its Constitution, its Code of Professional and Ethical Standards and a Director Training Course that all Directors are required to undertake before gaining Professional Membership of the Institute. Additionally, Ray is a Fellow of the Australian Institute of Directors and the PNGID and a Fellow of the Australian Institute of Management.

Board Assessment and Evaluation (BAE)
In recent years, more and more Boards have come to accept that regular Board assessment and evaluation makes a major contribution towards the improvement of Board performance and transparency. These discerning Boards treat evaluation and advice as a continuous improvement process and as a key element of effective corporate governance. It is viewed as a worthy investment that will positively impact upon the long term health of the Company and a process that Shareholders have come to expect.

Globally there are many firms providing Board assessment services, most of which are corporate and financial analysts such as Fitch, Moody’s, Deutsche Bank, IFC, Standard & Poors, Governance Metrics International (GMI), the FTSE/ISS etc. Whilst being comprehensive, many of these place considerable emphasis on the financial stability of the Company, as opposed to Board performance in the context of good corporate governance, the absence of which was a major factor contributing to the GFC.
Such global players tend to be extremely expensive, to the extent of being beyond the budgets of many small to medium sized Companies, as is the case in Papua New Guinea. This is the main reason for the development of the approaches offered by our company.

In 2013 the PNG Government declared that all State owned enterprises (SOEs) would have the same disclosure requirements that apply to publicly listed Companies on the international stock exchanges. The Bank of PNG has also announced that its Prudential Standards on Corporate Governance will require the Boards of all Life Insurance, Superannuation, Banks and Financial Institutions to undertake an adequate system of Board Assessment and Evaluation. Unfortunately, the majority of Boards, including those of all the State Owned Enterprises, have yet to take action.

BES ‘5 Star/70 Criteria’ Board Assessment/Evaluation
The BAE ‘5 Star’/70 criteria assessment methodology addresses the five elements of corporate governance, in consideration that financial analysis is largely carried out by the auditors of the financial statements. Each element is addressed on the basis of the following criteria, that are weighted and assessed on a rating of 0 – 15. Each element attracts a maximum ‘score’ of 100 thus providing total rating out of 500.

Categories: Finance, Legal


You Might Also Like
Read Full PostRead - Eye Icon
How Your Medicines Are Put To The Test
Innovation
16/02/2024How Your Medicines Are Put To The Test

Ever wondered about the incredible journey your medicines undertake before landing in your pharmacy bag? It’s a fascinating process of scientific rigor, safety assurance, and constant innovation that shows the untold stories behind the pills we often tak

Read Full PostRead - Eye Icon
Proptech On the Rise As Residential and Commercial Real Estate Investors Look to Battle Inflationary Pressures and Rising Interest Rates, Reveals Hampleton Partners
Innovation
09/11/2022Proptech On the Rise As Residential and Commercial Real Estate Investors Look to Battle Inflationary Pressures and Rising Interest Rates, Reveals Hampleton Partners

The Proptech M&A Market Report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that the first half of 2022 saw 55 property technology (Proptech) deals, 57 per cent up on 1H2020 and 12 per cen

Read Full PostRead - Eye Icon
A Leading Light in Law
Leadership
23/07/2019A Leading Light in Law

Ramni Taneja is an Indian Advocate, a sole practitioner, a litigator and also a transactional lawyer. Throughout her career, Ramni has accumulated experience, accolades and a wealth of loyal clients.

Read Full PostRead - Eye Icon
Do it yourself: How self-service checkouts are saving companies cash
Innovation
01/02/2019Do it yourself: How self-service checkouts are saving companies cash

Advancements in technology have had an effect on the way we do our shopping on the high street, as we constantly look to find ways of making the experience as smooth as possible. With no sign of developments slowing down in the world of retail — we investiga

Read Full PostRead - Eye Icon
Inside the Codebase: Five Steps of Software Development You Need to Know
News
01/09/2023Inside the Codebase: Five Steps of Software Development You Need to Know

Article written by Valentin Kuzmenko, Chief Commercial Officer/ VP of Sales at Andersen Modern businesses cannot function properly without pioneering software products. Companies willing to get efficient solutions partner with IT providers offering impeccable

Read Full PostRead - Eye Icon
How to Transform Retail Customer Experience with VR
Innovation
08/06/2023How to Transform Retail Customer Experience with VR

Each year, the number of customers ready to make purchases with VR is growing, even in the premium segment of the retail market. According to June 2022 Global Consumer Insights Pulse Survey by PWC, 19% of consumers used VR to purchase luxury goods.

Read Full PostRead - Eye Icon
B2B eCommerce Platform: How to Choose?
News
04/11/2022B2B eCommerce Platform: How to Choose?

eCommerce has become an essential part of doing business. No matter what kind of B2B company you have, it's critical to be able to reach out to customers online. You can do just that with a B2B eCommerce platform.  Whether you're selling products or services,

Read Full PostRead - Eye Icon
Going Above and Beyond
Leadership
07/05/2019Going Above and Beyond

AM Oktarina Counsellors at Law (“AMO”) is a growing Indonesian law firm providing comprehensive legal services for companies and individuals. Recently, we caught up with Founding Partner, Noverizky Tri Putra who provided us with a detailed insight into the

Read Full PostRead - Eye Icon
10 Business Benefits of Adopting RFID Technology
Innovation
19/11/202110 Business Benefits of Adopting RFID Technology

The radio frequency identification (RFID) technology has been in use for more than three decades now. It leverages the use of radio waves to identify and track objects. Even with the many years of its use, some businesses are yet to incorporate this amazing te



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow