The Institute of Chartered Accountants of Sri Lanka presented a new edition of the Code of Corporate Governance to the professional community. The document has undergone some changes, which will be discussed below.
Thus, according to the requirements of the updated version of the Code of Corporate Governance, companies need to check annually the composition of the board, focusing on the professional skills of its members, competence, expediency of one or another senior position, gender equality and adherence to an adequate proportion of the non-managerial and managerial structure of the company.
Also, a set of rules that regulates the processes of corporate governance provides for a special role of the board in agreeing strategic issues of the company. Strategic decisions are made collectively at regular and extraordinary meetings of senior management.
The document clearly identifies the role of shareholders, the board and executive authorities in the issues of sustainable business development, the preparation and approval of integrated reporting, the provision of cyber security, as well as the code of professional ethics, the system of internal control and risk management.
The updated Corporate Governance Code specifies requirements for reporting on cybersecurity, as well as environmental, social and managerial reporting.
It should be recalled: the Code of Corporate Governance is a rule recommended for observance by the securities market participants and aimed at protecting the interests of investors as well as improving all aspects of corporate governance.