The Privatisation and Corporatisation Board (PCB) and the Capital Market Development Authority (CMDA) have signed a Memorandum Of Understanding (MoU) to work towards the unification and harmonisation of Corporate Governance Codes. The agreement was signed by the President of PCB Asim Mohamed and the Chief Executive Officer (CEO) of CMDA Mohamed Hussain Manik.
Speaking after the signing of the agreement, Manik said that CMDA has created policies to maintain the governance of state-owned enterprises (SOEs) within a certain standard. Noting that PCB also has a certain set of policies, he said the agreement will further facilitate the governance of more SOEs in the future. In addition, he said PCB and CMDA share similarities in legal processes and therefore the Corporate Governance Code can be harmonised.
SOEs often face confusion regarding the Corporate Governance Code and the agreement aims to clarify the policies to be followed by such companies.