Home' Trinidad and Tobago Guardian : September 24th 2015 Contents September 24 • www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG9
To address why there is not yet a standard, tried and tested
routine for the appointment process we must first take some
step backs to understand what the Government is trying to
accomplish and then design or ascribe a process to achieve
the best outcome. While this appears to be a very complicated
problem, it should not be if some very simple and fundamental
questions are asked.
In its simplest form, a State Enterprise should either exist
to promote public policy objectives or to manage the State s
economic or cultural assets in the most viable way available.
However, challenges arise in ensuring that the role of the state
as majority owner is sufficiently involved to ensure that the
Enterprise is fulfilling its purpose. Also there needs to be struc-
tures in place to protect against excessive state intervention
and any abuse associated with the provision of monopolistic
goods or services.
To improve this situation, the sector must develop its Gov-
ernance Model to so that the State Enterprises are headed by
an effective Board, which is collectively responsible for the
long-term success of the company. This is the prevailing and
most accepted global model for Corporate Governance which
is recognised in Trinidad and Tobago through the OECD guide-
lines on which the Trinidad & Tobago Corporate Governance
Code (TTCGC) 2013 was developed.
This means that best practice requires a new government
to not simply give instructions to existing directors that they
are not authorized to execute contracts (as presently occurs)
but for the line Minister to determine who his/her new chairs
will be and to make the appointments as soon as possible on
the basis that the new chairs will assess the competence of
the existing directors and, if necessary, make recommendations
for substitutions. This will also enable the boards to continue
operating so that the companies business will not be hamstrung
and the intervening period will allow for a measured and dis-
passionate analysis of competence and loyalty to be carried
In 2013, the Caribbean Corporate Governance Institute
(CCGI), the Trinidad & Tobago Stock Exchange and the Trinidad
& Tobago Chamber of Industry of Commerce worked in part-
nership to publish the Trinidad & Tobago Corporate Governance
Code. This important Code applies to all organizations within
Trinidad & Tobago "with a public accountability". Readers
may be surprised to learn that the provisions in the Code
apply to all of the 59 organizations in Trinidad & Tobago that
the Government currently holds shares. The recommendations
in the Code concerning the selection and appointment of
board members are listed in the box. New Government Min-
isters, Permanent Secretaries, CEOs, Corporate Secretaries,
directors and other officers of Public Bodies all have a role to
play in applying the Code.
The Caribbean Corporate Governance Institute (CCGI) has
a mandate to create effective organizations and efficient markets
through board directors that can be trusted (based on their
training, continuous development, and professional values
that they formally commit to as professional members), and
the research, publication, and monitoring of corporate gov-
ernance best practice standards appropriate for the Caribbean.
As part of CCGI s programme aimed at public directorships,
the CCGI aims to support Government Ministers, Permanent
Secretaries, CEOs, Corporate Secretaries, directors and other
officers of Public Bodies in improving governance in the public
sector within Trinidad & Tobago.
The CCGI is a regional, independent, non-profit, profes-
sional membership organization registered with the Ac-
creditation Council of T&T. CCGI is the award body that
provides the Certificate and Diploma in Corporate Gov-
ernance and the Chartered Director qualification
throughout the Caribbean. CCGI welcomes membership
applications and participation in its courses and events
throughout the region. +1 (868) 221-8707
State Enterprise should exist to promote
public policy or manage the State assets
From Page 8
Trinidad & Tobago Corporate Governance Code (TTCGC) 2013
Establish a Framework for Effective Governance:
Every company should be headed by an effective Board, which is collectively responsible for the
long-term success of the company.
The chairperson of the Board should be a non-executive Director and preferably an independent
Director. Where the chairperson of the Board is not an independent non-executive Director, the
Board should appoint a lead independent Director.
The Board should demonstrate ethical leadership, which includes commitment to high ethical
standards and responsible decision-making.
The Board should take into account the legitimate interests and expectations of all stakeholders.
There should be active co-operation between corporations and stakeholders in creating wealth,
employment, and the sustainability of financially sound enterprises
WHAT IS THE EXPECTATION OF THE BOARD REGARDING CORPORATE GOVERNANCE
Links Archive September 23rd 2015 September 25th 2015 Navigation Previous Page Next Page