PSE partners with UK govt for corporate governance project
abs-cbnNEWS.com | 12/09/2008 6:40 PM
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The Philippine Stock Exchange (PSE) has signed an agreement with the government of the United Kingdom for a corporate governance initiative.
Under the accord, the PSE will receive a funding of P7 million from the UK government for a project called "A Special Corporate Governance Board in the PSE".
The assistance will be taken from the UK's Foreign and Commonwealth Office's Strategic Programme Fund for Low Carbon High Growth Programme.
"We view this grant not only as a funding support but also a vote of confidence for putting an abstract term like corporate governance into action," said PSE president Francis Lim.
For his part, UK Ambassador to the Philippines Peter Beckingham said the grant is a testament of his country's continued support to the Philippines.
"The Philippines is very important to us since we are one of the largest investors here. Our partnership with this country has always been strong. In fact, there is now over 200,000 Filipinos now in the UK," he said.
Apart from the PSE, the UK goverrnment previously extended support to the country's wholesale electricity spot market (WESM), several local government units (LGUs) and the Philippine Chamber of Commerce and Industries (PCCI).
The PSE's corporate governance project is aimed at creating a mechanism that would distinguish listed companies that substantively commit to international corporate governance best practices.
The grant is to fund research studies, consultative meetings, working sessions, consultants, information materials, media placements and other activities that would determine the appropriate corporate governance standards, as well as the operational, structural and policy framework for the Special Corporate Governance Board.
"We are always looking for ways to improve and further our mission of being an exchange that is responsive to the needs of our investors and other stakeholders. And if that effort is being recognized by a foreign government, it wouldd be easier for us to be accepted by intevestors in the international arena," said Lim.
Last year, the PSE created the Corporate Governance office to support the fundamental functions of corporate governance, enterprise risk management, strategy management and corporate social responsibility. It said corporate governance would further enhance the company's reputation and credibility by building long term shareholder value, providing stability and consistency and promoting transparency and truth in reporting.
