Logo of Phnom Penh Post newspaper Phnom Penh Post - Regulator pushes for corporate governance

Regulator pushes for corporate governance

Traffic passes the Securities and Exchange Commission of Cambodia (SECC) head office in Phnom Penh’s Sen Sok district.
Traffic passes the Securities and Exchange Commission of Cambodia (SECC) head office in Phnom Penh’s Sen Sok district. Hong Menea

Regulator pushes for corporate governance

The vast majority of local companies lack corporate governance standards and provide insufficient business information, requiring investors and regulators to do heavy due diligence work that stops businesses from tapping into additional funding sources, officials said yesterday.

Speaking at the opening of a two-day education seminar on corporate governance and transparency, Sou Socheat, director of Securities and Exchange Commission of Cambodia (SECC), said that strengthening corporate governance in the private sector was crucial for the Kingdom’s economic growth. He added that if more companies adopt international corporate governance principles, it could spur more listings on the sluggish Cambodia Securities Exchange (CSX).

“There are some companies starting to strengthen their corporate governance, especially publicly listed companies, but the number is still tiny,” he said. Besides the four listed companies on the CSX that are legally bound to international norms, he added that the Kingdom’s banks performed well in terms of best practices. However, small- and medium-size enterprise clearly lacked transparent reporting and accounting principles.

“Once there are more companies strictly implementing corporate governance, it will help boost the number of listed companies on the stock market because they will easily comply with our own standards,” he said.

Over the years, the SECC has partnered with numerous development partners in an attempt to raise awareness of the benefits of corporate governance.Yesterday’s event was supported in partnership with the OECD Southeast Asia Corporate Governance Initiative – an institution that aims to support the development of effective corporate governance to promote inclusive growth.

Lamun Soleil, director of market operation department at the CSX, said that corporate governance principles enables a company to access additional funding sources as capital providers trust transparent businesses.

“The stock market requires that companies have good corporate governance, mainly to build trust from investors,” he said. “There should be a strong correlation between the number of companies listed and the success of stock market.”

In Channy, president and CEO of Acleda Bank, said that registered and tax compliant companies need to have clear financial reporting standards and a proper management structure.

“We need to have corporate governance to have good relationships with our investing partners,” he said. “We try to work with companies we provide lending to in order to strengthen transparency and build public trust.”

MOST VIEWED

  • Rainsy stopped in Paris from boarding Thai flight

    Airline officials at Paris’ Charles de Gaulle airport on Thursday prevented Sam Rainsy from boarding his flight to Bangkok ahead of his announced return to Cambodia on Saturday. Prime Minister Hun Sen had earlier in the day assured Phnom Penh residents that there would be

  • Analyst: Rainsy blocked from boarding flight 'an excuse'

    THAI Airways not allowing Sam Rainsy on its route from Paris to Bangkok on Thursday is being used as an excuse to keep his standing among fellow coup plotters and his uninformed supporters as flights to non-Asean countries are available, an analyst said on Friday.

  • Rainsy lands in Malaysia

    Cambodian opposition figure Sam Rainsy arrived in Kuala Lumpur airport on Saturday afternoon after boarding a flight from Paris, where he has been living for more than four years. Ministry of Foreign Affairs and International Cooperation spokesperson Koy Kuong said on Saturday that Cambodia respected

  • Touch: Rainsy will never return

    Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), has claimed it has achieved 70 per cent of its struggle to find a solution to the current political situation in the Kingdom. Just before boarding a plane at Charles de Gaulle

  • Sokha continues call for dropping of charge after bail conditions reduced

    Not satisfied with having his bail conditions reduced, allowing him to travel freely in Cambodia, Kem Sokha says he wants his charge totally dropped. “As an innocent man who has been in detention for two years even without being found guilty, I continue to demand

  • MEPs' call for Rainsy's safety not European Parliament position

    The European Parliament said on Friday that a statement by 56 Members of the European Parliament (MEPs) calling for guarantees of Sam Rainsy’s freedom and safety should he return to Cambodia did not represent its position. Delphine Colard, the European Parliament’s press officer told