The Securities and Exchange Commission of Cambodia began public consultations yesterday on the required corporate governance rules for state-owned firms listing on the planned stock exchange.
Speaking to 150 company representatives at the first consultation held at the Phnom Penh Hotel yesterday, SECC Securities Issuance Supervision Department Director Chhun Sambath said the draft prakas, or edict, will give investors confidence in the future exchange.
“The prakas is aimed at ensuring a standard of transparent corporate governance that can be trusted by shareholders,” he said.
The SECC sets outs the rules governing shareholder rights in the draft prakas, as well as clarifying its requirements regarding management structures and the role of a company’s board of directors.
Besides corporate governance, a state-owned enterprise intending to list on the exchange is required to have minimum capital of 10 billion riels, or US$2.35 million. It must also have made an annual profit of at least 1.5 billion riels, or $353,523, the year previous, and have achieved minimum net profit of 3 billion riels, $707,046, over the three previous years.
In addition, a firm intending to list must have received an annual independent audit for the three previous years, the SECC has said.
Three stated-owned enterprises – Sihanoukville Autonomous Port, Phnom Penh Water Supply Authority and Telecom Cambodia – received government instructions in December to prepare for listing on the exchange, scheduled to launch by July next year.