Directors of Dealing Member Firms Undergo Training on Corporate Governance

Informed by the realization that the operations of any organization are better run where proper  structures and processes are put in place, The Nigerian Stock Exchange (NSE) organized training on Corporate Governance exclusively for Board Chairmen and Directors of Dealing Member Firms  in the last week of October 2013 at The Stock Exchange Building in Lagos. The training was aimed  at enhancing the directors' fiduciary duties, uprightness and utmost commitment in directing the affairs of Dealing Member Firms with the goal of having a more transparent capital market.

The Head, Legal and Regulation Division at The NSE, Ms Tinu Awe stated that the training was  timely in view of the increasing demand on corporate boards to align their business or corporate performance with their corporate social responsibilities to the society they operate in and also build investors’ confidence in the Market.

“Global best practice has made it imperative for Capital Market Operators to be adequately informed and educated about the importance of Corporate Governance to enable them institute  high ethical values for the benefit of investors, their stakeholders and the communities in which  they operate” said Awe.

She went further to state that “the focus of the training was to equip Directors of Dealing Member Firms on cutting-edge techniques, strategies and action plans for corporate governance for the efficient management of their organization as The Exchange strongly believes good corporate governance will enable business prosperity by creating a system of transparency, accountability, fairness, reputation and ethical conduct”.

Speaking on the initiative, The NSE’s Head of Broker Dealer Regulation, Mr. Olufemi Shobanjo commented: “With the training, the Boards of Dealing Member firms will be better positioned to make sound Strategic and Business Plans; Risk management; Financial Management and Reporting; Human Resource Planning and Control; Compliance and Accountability Systems He spoke further: “The Exchange also expects that the training would provide a framework for establishing responsibility to the people served by the company (its members, clients) and will  generally enhance the reputation of the company and the Capital Market and make it more attractive to investors and all other stakeholders. We are positive that the training will go a long  way in repositioning Dealing Member firms and ultimately regain investors’ confidence in the capital market.”

In line with the Nigerian bourse’s commitment to create sustainable value for its stakeholders, The Nigerian Stock Exchange just last week became the latest exchange to have joined the United  Nations Sustainable Stock Exchanges (SSE) Initiative, at a bilateral meeting with UNCTAD on the sidelines of this year's annual conference of the World Federation of Exchanges, in Mexico City.

The SSE initiative is co-organized by UNCTAD, the United Nations Global Compact, the United Nations Environment Programme's Finance Initiative, and the UN-supported Principles for Responsible Investment.

The initiative explores how stock exchanges can work together with investors, regulators and companies to enhance corporate transparency - and ultimately performance - on environmental, social and corporate governance issues, and can encourage responsible long-term approaches to investment.