Download report of the first Caribbean Corporate Governance Forum, held Sept 3 - 5, 2003.
Report on the first Caribbean Corporate Governance Forum (A Working Document)
PRELIMINARY SUMMARY REPORT ON THE FIRST CARIBBEAN-WIDE CORPORATE GOVERNANCE FORUM
The first Caribbean
Corporate Governance Forum was successfully concluded last week. Held
at the ECCB headquarters over the period September 3-5, 2003, the Forum
attracted over 120 participants from 16 out of the 24 countries in the
Caribbean Basin invited to be part of this important endeavor. Prominent
experts from Canada, India, Malaysia, United Kingdom, the United States
of America and the Caribbean region made presentations at the Forum.
The Forum was jointly sponsored by the Eastern Caribbean Central Bank
(ECCB) and the Eastern Caribbean Securities Exchange Ltd (ECSE), in
collaboration with the Commonwealth Secretariat, the Caribbean Development
Bank and the Global Corporate Governance Forum (GCGF). The US-based
Center for International Private Enterprise (CIPE), , National Commercial
Bank of Dominica, RBTT Group, ScotiaBank and St. Kitts Nevis Anguilla
National Bank (SKNANB) contributed to the Forum, as associate partners
.
A number of regions
of the world have already organized similar corporate governance forums
or roundtables to develop an effective approach to addressing this topic
as well as providing their positions to the global dialog on this issue.
These regions have since moved forward to develop codes, institutions
and training programs to enhance corporate governance efforts in their
jurisdictions.
This historic Forum
accorded the opportunity for our region's participants to assess developments
worldwide and launch what would be the beginnings of a unified corporate
governance movement in the Caribbean Basin.
The Forum addressed
overall objectives that were mainly the following:
The Forum was designed
to not only learn about developments worldwide in corporate governance
efforts but also to seek constructive input from our region's government
and business community in a number of diverse areas. Over the 3-day
period, participants discussed a number of key issues, including:
a) global trends in corporate governance and its implications for
emerging economies;
b) corporate governance challenges for the Caribbean;
c) corporate governance from the perspective of institutional investors;
d) role of governments and businesses in promoting corporate governance;
e) role of banks;
f) corporate governance issues for non-bank financial institutions;
g) governance practices in corporations and SMEs; and
h) the role of securities markets in promoting healthy corporate governance
practices.
Presentations by
panelists were followed by discussions, wherein, participants engaged
in constructive dialog aimed at building an appropriate Caribbean response
to these above-mentioned areas.
The Forum also provided
a platform for assessing current corporate governance activities in
participating countries. A special breakout session Country Presentations
on Status of Corporate Governance Efforts was held to apprise participants
and sponsors of the issues that are of concern to each country represented.
Emerging needs and priorities of the countries represented were also
highlighted at this session.
Perhaps the most
important facet of the program was the establishment of task forces
to develop recommendations coming out of the Forum. Presentations made
by experts and the discussion following each panel served as a guide
for deliberations as participants convened in 5 different task forces
to formulate a collective view from the following sectors:
1. Central Banks,
Ministries of Finance and other Government Entities
2. Securities markets and institutional investors
3. Banks
4. Non-bank financial institutions
5. Industry associations
The task forces
made use of standard terms of reference prepared by the sponsors as
a basis for putting together recommendations. Discussions in the task
forces centered around the diagnostic of the key development issues
facing a particular sector, the assessment of the current corporate
governance practices in that sector and finally the recommendations
for action on priority corporate governance issues for that sector.
Towards the end of the Forum, each task force made a formal presentation
at the plenary session in their area. Recommendations from the various
task forces were then compiled into an overall draft report that served
as a resource document for a closed session immediately following the
Forum.
The closed session
was limited to 20 individuals chosen from the participants to serve
as the Caribbean Technical Working Group (CTWG) on Corporate Governance
arising from the Forum. The selected individuals represent the broader
Caribbean as well as the various constituencies/sectors involved with
corporate governance issues. Representatives from the donor community
including Caribbean Development Bank (CDB), Commonwealth Secretariat
and Center for International Enterprise (CIPE) as well as a few international
faculty members participated at this closed session as observers. The
CTWG discussed follow-up activities to be undertaken in the region following
this Forum. It was decided that the existing ECCB/ECSE corporate governance
secretariat would serve as the focal point for roll out of all CTWG
activities.
The following set
of priorities were established by the CTWG:
1. Formalising and
disseminating the proceedings of the recently concluded Forum to participants
and major government and private sector entities in the region
2. Developing a position paper on the Caribbean concept of corporate
governance to be distributed at the upcoming GCGF meeting on Corporate
Governance in Paris in November
3. Ensuring Caribbean representation at the Paris meeting
4. Undertaking a
quick review of the OECD principles
5. Soliciting the concurrence of one or more Prime Minister(s) to champion
the cause of corporate governance in the Caribbean at the level of regional
Heads of Governments, and offer the technical support of the CTWG
6. Identifying other prominent individuals/groups (not present at the
Forum) that could be co-opted into the CTWG to allow for effective representation
from the region
7. Based on the recommendations of the various task forces at the Forum,
establishing the basis for the implementation of initiatives in the
following areas:
:
: Training initiatives and accreditation/certification for:
- Bank Directors
- Public Company Directors
- Parliamentarians/State Officials
- Auditors
:
: Public information efforts aimed at:
- Building awareness
on corporate governance
- Press and civil society
The discussions
at the Forum, the recommendations of the task forces and the deliberations
of the CTWG are now being compiled into a final report, which will be
a major deliverable of the Forum. A copy of this report will be provided
to all participants and broadly disseminated in the region as well as
to the donor community. The secretariat of the CTWG was also charged
with the responsibility of exploring with the donor community the assistance
that could be provided to facilitate the rollout of the activities mentioned
above.
All faculty presentations,
forum material and background information can be found on the Forum's
web page at www.ecseonline.com/corporategovernance.asp.
Deliberations of this Forum as well as the final report will also be
posted on this web site at a future date. It is the intention to have
this page serve as a focal point for all documentation related to corporate
governance in the region. All interested in corporate governance issues
are encouraged to visit this page on a regular basis.
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