Corporate Governance in Sri Lanka

In: Business and Management

Submitted By gagana
Words 6667
Pages 27
Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include labor(employees), customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large. These are some definitions given under the Corporate governance;
The simple meaning of the Corporate governance is the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return. It ensures that the board of directors is accountable for the pursuit of corporate objectives and that the corporation itself conforms to the law and regulations.
- International Chamber of Commerce
"Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society “
"-(Sir Adrian Cadbury in 'Global Corporate Governance Forum', World Bank, 2000)

Company’s financial statement is very important for the external users especially investors to make a decision and understand the business. Figures in the financial statement may not be very helpful, therefore, most of this investors will rely more on the disclosures or notes provided in the financial statement. Basically, SLFRS promote corporate governance through this…...

Similar Documents

Corporate Governance

...Review Volume 15 Issue 1 Special Issue: Comparative Corporate Governance 7-1-2003 Article 13 Corporate Governance in Malaysia Kamini Singam Recommended Citation Singam, Kamini (2003) "Corporate Governance in Malaysia," Bond Law Review: Vol. 15: Iss. 1, Article 13. Available at: This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Governance in Malaysia Abstract This article examines the corporate governance system in Malaysia. A sound corporate governance system should help create an environment conducive to the efficient and sustainable growth in the Malaysian corporate sector. Since the Southeast Asian financial crisis in 1997 – 98 (‘financial crisis’), corporate governance has become a key policy issue confronting many Southeast Asian countries, including Malaysia. This article considers the distinctive problems of corporate governance in Malaysia, despite several steps for reform that have taken place since the financial crisis. There will be a brief discussion on the meaning of corporate governance and an overview of the present status of corporate governance in Malaysia, in particular after the financial crisis. Keywords corporate governance, Malaysia, Southeast Asian financial......

Words: 13068 - Pages: 53

Kinh Tế Sri Lanka

...1. Hệ thống kinh tế - Kinh tế Sri Lanka theo cơ chế nền kinh tế thị trường - Kinh tế nhiều thành phần: 2. Cơ cấu ngành 1. Cơ cấu ngành: Nông lâm ngư nghiệp: chiếm khoảng 12%, Công nghiệp: chiếm khoảng 28.5% GDP, Dịch vụ: khoảng 59.5% 2. Hiện trạng của một số ngành nội bộ ➢ Nông, lâm, ngư nghiệp: Ngành nông nghiệp chiểm tỉ trọng 12% trong cơ cấu GDP, 25% trong tổng số kim ngạch xuất khẩu và 30% trong nguồn lao động năm 2010. Sản phẩm chủ yếu: gạo, mía đường, ngũ cốc, hạt có dầu, gia vị, rau quả, chè, cao su… Nông nghiệp: Ba cây xuất khẩu chính truyền thống của Sri Lanka là chè, cao su và dừa. Thủy sản : Sri Lanka có tiềm năng đáng kể về thủy sản biển khơi, thủy sản nội địa và thủy sản nuôi trồng Chăn nuôi: Ngành chăn nuôi bao gồm chủ yếu là sữa và gia cầm.Tính đến năm 2009, sản xuất sữa ở địa phương bao gồm 33% nguồn tiêu thụ quốc gia.  ➢ Công nghiệp: Bao gồm bốn lĩnh vực chính: Công nghiệp khai khoáng,Sản xuất (tức là chế biến các sản phẩm nông nghiệp, công nghiệp…),Năng lượng (Điện, khí đốt và nước), Xây dựng Về công nghiệp khai khoáng: Sri Lanka được trời phú với nhiều loại khoáng sản: Đá quý,Dầu thô Về lĩnh vực chế biến: Thực phẩm, đồ uống, và thuốc lá, Dệt may, may mặc, da, hóa chất, dầu khí, cao su, và các sản phẩm nhựa. Về lĩnh vực xây dựng: Ngành công nghiệp xây dựng đã ghi nhận mức tăng trưởng 9,3% cùng với tăng trưởng kinh tế 8% của Sri Lanka trong năm 2010. Về lĩnh vực năng lượng: ➢ Dịch......

Words: 372 - Pages: 2

Cinnamon Bey in Sri Lanka

...designed by master architect, Mr. Channa Daswatte. He had the intention to infuse the culture and influence of the pioneering Arab traders whose vessels inextricably linked this island nation to West Asia, North Africa, Morocco and the Persian Gulf in the tenth century. From the Mughal inspired bedrooms, Moroccan influenced Zillij terracotta tile work to the intricate Mashrabiya carved wood lattice are all works of art that speak of understated grandeur and contemporary comforts. The culmination of unique design elements and the myriad of influences extend unrestrained throughout the resort. These designs that are symptomatic of Islamic architecture, encapsulates the essence of cinnamon, the spice which was extensively traded across Sri Lanka’s shores. “Comfort, creativity and discovery are ingrained into the properties. The comfort is more than evident within the rooms, all of which are spacious and equipped with all requisites of the five star milieu” Mr. Daswatte explained.. Completely secluded from the main resort is the VIP wing with 28 Deluxe rooms and two suites. The VIP wing is designed for exclusivity with its individual pools, choice of private breakfast in the exclusive restaurant 800 Degrees and open plan bathrooms with amazing views. Each suite boasts a luxurious space of 1,440 square feet with a kitchenette, pantry and spacious private terrace and Jacuzzi plunge pool overlook a panoramic view. A butler service is also offered to compliment the......

Words: 392 - Pages: 2

Passion Fruit Industry in Sri Lanka

...Case study 2 Sri Lanka Cargills Ceylon Ltd Total cost: Financier Year of initiation: NA Private company 2001 2010-2015, Possible partner under the IFAD-supported National Agribusiness Development Programme (NADeP) Relational chain, buyer-driven Value chain approach: Background. Cargills Ceylon Ltd (Cargills) is a supermarket chain called Food City in Sri Lanka. It has improved the efficiency of its operations by purchasing directly from producers, increasing the efficiency in the chain, thereby increasing its own income as well as the price paid to smallholders. Its intervention in the passion fruit chain provides an example of how Cargills improved the efficiency of the chain resulting in considerable benefits to the producers and increased sales of passion fruit through its retail outlets. In a normal fruit and vegetable chain in Sri Lanka (see Figure 11) there are many actors who usually tend to act in their best interests rather than operating as a coordinated chain, resulting in high operating costs. Some 30% of the market value accrues to the middlemen, post-harvest losses amount to about 40% and only around 30% of the final value accrues to the producer. Figure 1: Conventional supply chain for fruits and vegetables (SL/kg) In the generic chain there are many problems. Usually low quality planting material is used. In addition, premature harvesting and poor post-harvest practices contribute to inferior product quality entering the markets. Fresh produce is......

Words: 1253 - Pages: 6

Corporate Governance

...and ethical lapses have heightened people, press, and investor security of companies, creating demand for a corporate culture of integrity driven performance and a new corporate transparency. Management and boards now feel compelled to ensure that proper governance processes are in place to protect corporate reputation, brand image and share holder value. According to Pricewaterhouse Cooper’s 8th Annual global CEO survey (Dec 2004), 50% of retail industry CEOs believe that there is a strong relationship among all elements of GRC (governance, risk and compliance) and that effective governance can be a value driver and a benefit versus a cost, to their companies. Effective corporate governance requires management and board involvement, accountability, embracing the processes, compliance, and structure required to direct and manage the affairs of a corporation. Its overall goal is to ensure the financial viability to the enterprise and enhance share holder value. For the retail and customer industry, globalization, which entails multinational operations, various financial reporting systems, and complex supply chain with wholesalers, distributors, and multiple types of retailers, not to mention multiple brand portfolios, and various types of outlets, provides significant rationales for management and boards to develop an effective GRC program. Successful corporate governance depends largely on trade-off among the various conflicting interest groups like government, society,......

Words: 15491 - Pages: 62

Corporate Governance

...Corporate Governance (Responsible Investment) Submitted To: Aleem Afzal Submitted By: Syed Izhar (FA09-MBA-146) COMSATS Institute of Information Technology, Lahore. Corporate Governance and Responsible Investment: Corporate government is not a new idea. There is not much new about basic idea of corporate governance except the phrase ‘Corporate Governance’. Corporate entities always need governing. Corporate governance is necessary when ownership or membership is separated from management control. Beginning of the modern concept in ‘Corporate Governance’ was in 19th century. In 19th century there were two ways in which business was performed; • Sole proprietorship • Partnerships But if business fails creditors will take all your the assets even the house. In other words business man had an unlimited liability. And unfortunately you could be sent to prison. That was not a good incentive for businesses. Why would any one risk his/her life as well as life of the family for a business? Fortunately industrial revolution was knocking at the door, business opportunities were opening up. Investment was needed in many sectors but people were scared of investing in their own businesses because of the danger that if their business fails to perform they could be left with nothing, and......

Words: 1687 - Pages: 7

Corporate Governance in Bangladesh

...Term Paper On Corporate Governance in Bangladesh Prepared for Professor Dr. Akbar Ali Khan Faculty Prepared By Alim Al Razi ID: 13174044 BRAC Business School August 16, 2013 Alim Al Razi ID: 13174044 Term Paper Corporate Governance & Social Responsibility BRAC University, August 2013 ABSTRACT There is a growing sentiment that poor corporate governance is one of the forces to blame for the collapse of the financial market since it failed to ensure the transparency, accountability and integrality of companies, particularly on matters of corporation. Bangladesh is one of the third world countries having many opportunities in corporate sector and also one of the least developed countries in the south-east Asia that has issued corporate governance guidelines. This was a timely attempt by the regulatory market of the country to keep up with the worldwide concern for reforming corporate monitoring structures. The guidelines are mandatory for all the companies listed in the stock exchange. In the wake of the free-market economy, many investors are interested to invest in Bangladesh because of its competitive labor costs and abundance of workers. The government of Bangladesh also offers significant incentives to encourage foreign investment. In this scenario, attempts to enhance corporate governance by adapting corporate governance guidelines, best practices and respected provisions of company law will enable the country to be a better place for investment.......

Words: 12053 - Pages: 49

Sri Lanka

...Sri Lanka and its Caste Systems Outline Title: Sri Lanka and its Caste Systems Thesis: A vital part of the Sri Lankan culture is its caste systems. Introduction Paragraph Thesis - A vital part of the Sri Lankan culture is its caste systems. Sub Topic - What is a caste or caste system? A caste system is a system of which label a person’s ranking at birth based on a _____ scale. Sub Topic - How many caste systems are there in Sri Lanka? There are several caste systems in Sri Lanka, but the two most ones are the _____ and the _____ caste systems. Paragraph #1 Topic sentence – What are the different castes? There are ___ different castes: ____, _____, _____, _____…. Sub Topic – How is a person’s caste determined? A person’s caste is given to them at the moment of their birth. Their caste is decided considering _______________________. Sub Topic - What are the differences between the two most used caste systems? Paragraph #2 Topic Sentence – How is the caste system different from social class? Social class is determined by a person’s financial situation, job position, and education, and can change if any changes occur to the person’s financial situation, reputation, job position, etc. The difference social class has to a caste is ________________________. Sub topic - How are people with lower castes treated in comparison to people with higher castes? ...

Words: 912 - Pages: 4

Sri Lanka Marketing Plan

...000835874                Boost Sri Lanka's Tourism Marketing Plan Table of Contents 1. Introduction 3 2. Planning and research 3 3. Marketing objectives 8 4. Target market 9 5. Activities and program 10 6. Timetable 12 7. Control and evaluation procedures and measures 13 8. Appendix 1 14 9. References 15 Introduction Sri Lanka is island country, which located in the Indian Ocean (CIA, 2014). It is well known as its natural beauty, cultural heritage, golden beaches, multiple wildlife, unique festivals and great people. Sri Lanka is generally known as “the pearl of the Indian ocean” it is attracting more and more international visitors including Chinese tourists to explore its natural beauty and splendid culture recent years. Despite of these all, a strong marketing campaign is required not only to stable its position in the tourist market but also for the promotion its tourist market. No doubt, this research and the marketing plan will prove to be the helpful to boost Sri Lanka’s Tourism Market by attracting Chinese market. Sri Lanka Tourism received 100,000th Chinese Tourist this year (Sri Lanka, 2014a). It will be helpful......

Words: 4214 - Pages: 17

Corporate Governance

...A Research Project On “Corporate Governance, Bank’s Transparency and Bank’s Performance – A Panel Analysis Public Study” Submitted To: MD. AL MAMUN Assistant Professor of Finance Department of Business Administration East West University Course Instructor: BUS 498 Submitted By: Monjur-E-Elahi ID: 2010-1-10-067 Date of Submission: 27th December, 2013 Letter of Transmittal: 27th December, 2013 Md. Al Mamun Assistant Professor of Finance Department of Business Administration East West University Submission of the research project on “Corporate Governance, Bank‟s Subject: Transparency and Bank‟s Performance – A Panel Analysis Public Study” Sir, Here is the research project on “Corporate Governance, Bank‟s Transparency and Bank‟s Performance – A Panel Analysis Public Study”, which you have assigned me to do, to get a clear understanding over corporate governance practice in different banks in Bangladesh. I have tried my best to gather all kinds of relevant data, which could give an overall idea on this topic. To do that, I‟ve conducted a study on 18 selected bank‟s corporate governance practice. In addition, I have also studies relevant rules, regulations and laws. I hope that this report will meet the expected standard. I have enjoyed doing the research work. Especially, your kind supervision has made the hard work easy. I am submitting this project for your kind consideration and thanking you for your constant assistance and guidance. Sincerely......

Words: 28359 - Pages: 114

Cement Industry in Sri Lanka

...Industry Analysis Sri Lanka’s changing landscape with numerous projects which have enhanced and bloomed the construction industry. This will by default, increase the necessity of associated segments like the cement industry. Because cement has become one of the main and crucial ingredients which is used in these giant projects where infrastructure is being enhanced with a great scale. Post war situation of the country has result in this demand. Currently Sri Lanka has many companies or rather brands to bring the very same cement to the market at many different prices but the quality is subject to change with one brand to the other. Main suppliers for cement industry in current Sri Lankan market are as follows. 1) Tokyo Cement 2) Holcim Cement 3) Ultratech Cement Above mentioned companies are some of the companies operate in Sri Lankan market. Currently the maximum retail price of a 50 kg bag of cement is Rs. 785. This kind of market control mechanisms have been executed in the market because this market has become really very important to customers and have become a frequently required item. Sri Lanka is estimated to be consuming about 5.8 million tons of cement per annum. Sri Lanka is used to import 66 percent of its requirement either in the form of cement or clinker and it is important to note that this could go up to 75 percent. Mainly Sri Lanka imports cement from countries such as India, Vietnam, Pakistan, Malaysia, Indonesia and Thailand.......

Words: 649 - Pages: 3

Corporate Governance Corporate Governance and Performance of Saudi Arabia Listed Companies Yahya Ali Al-Matari Faculty of Accountancy, Universiti Utara Malaysia Dr. Abdullah Kaid Al-Swidi College of Arts & Sciences, Universiti Utara Malaysia, and Assoc. Prof. Dr. Faudziah Hanim Bt Fadzil Faculty of Accountancy, Universiti Utara Malaysia Abstract: This study aims to provide a concise view of the background of Saudi Arabia‟s legal system, important regulations and monitoring policies related to the corporate governance followed by the Saudi government to enhance the attractiveness of the business environment. In so doing, this study attempted to provide an overview on corporate governance in the emerging markets and more specifically in Saudi Arabia. Additionally, this study has shed lights on the main monitoring devices which play a significant role in regulating and developing the Saudi business environment. The focus was on some corporate governance mechanisms that might affect firm performance including board composition (BODCOM), CEO duality (DUAL), board size (BSIZE), audit committee independence (ACIND), audit committee activities (ACMEET) and audit committee size (ACSIZE). Keywords: Corporate governance, firm performance, emerging countries, Saudi Arabia. 1 British Journal of Arts and Social Sciences ISSN: 2046-9578, 1. Introduction The topic of corporate governance is assuming......

Words: 15071 - Pages: 61

Un Intervention in Rwanda and Sri Lanka

...reference to the UN role in Rwanda and Sri Lanka. Dr. John O’ Brennan Founded in 1945 with lofty ambitions to advance prosperity and security in the world, the United Nations Organisation (UN) is best endowed to conduct preventive diplomacy by preventing disputes and conflicts arising from interstate and intrastate relationships. It may be argued that the UN currently possess the capability to prevent such conflicts and disputes from emerging and escalating into armed confrontation (Ododa Opiyo 2012:61). Having developed peacekeeping as a form of impartial interposition between belligerents during the Suez Crisis in 1956, the UN has continually broadened its sphere of action. The organisations first 15 years of activity entailed of 15 operations however, between 1988 and December 2012, the UN set up fifty-four such operations to restore or maintain peace. Those missions extended from “simple interposition, as in the case of UNIIMOG in 1988, to enforcement operations mandated by the UN Security Council in Resolutions 770 (1992) for the former Yugoslavia and 794 (1992) for Somalia” (Hatto 2013:497). These operations consisted of humanitarian assistance, election supervision, the repatriation of refugees, the disarmament, demobilisation and reintegration of former combatants, the restoration of a state's ability to maintain security out of respect for the rule of law and human rights, and support for the founding of legitimate and effective governance institutions (Hatto......

Words: 3488 - Pages: 14

Corporate Governance

...1.0 Introductions 2.0 Literature review 3.0 Background and history of Development CG The term of corporate governance not just been introduced but it also drew attention of the public about the weaknesses of Malaysian corporate governance practice due to the Asian Financial Crisis in 1997. After 1998, the government of Malaysia decided to adopt the corporate reforms to enhance the quality of good corporate governance practice in the country. The main sources of the Corporate Governance reforms agenda in Malaysia other than Malaysian Code on Corporate governance are the Capital Market Master Plan (CMP) and also Financial Sector Master Plan (FSMP). This sources provides guidelines on the principles and best practices in corporate governance and the direction for the implementation as well as charts for the future prospects of corporate governance in Malaysia. Malaysian Code on Corporate Governance is an initiative that established by the Financial Committee on Corporate in 1998. This committee is consists of both government and also industry. MCCG was introduced on March 2000. This code brought a systematical change in structure of public and also private corporation. The principles underlying the report focus on four areas which are board of directors, directors’s remuneration, shareholders and accountability and audit. Compliance with the code is not mandatory. However, the listed companies in Bursa Malaysia are required to prepare their annual report on how they......

Words: 2720 - Pages: 11

Sri Lanka Subcontract Gem Company

...Introduction After being designated the Sri Lankan market for our assignment we began in depth research as to what areas of their economy we could exploit. After further examination we decided upon the gem industry as we saw a lot of potential to combine with an Irish company, in this case Waterford Crystal. We chose an Irish company as a result of a rising cost base and lack of raw materials for Gems in Ireland, both of which are not a problem in Sri Lanka. By combining Waterford Crystals expertise and reputation with the natural resources of Gems in Sri Lanka, we found we could exploit the growing trends in exports of gems and jewellery which is currently worth $450million but has the potential to be a billion dollar industry in the country with Waterford Crystal to the fore. Why subcontracting in Sri Lanka? One of the key components in our research into Sri Lanka and the possibility of moving our operations to the country depended on how the operations would be structured in the Sri Lanka and also the viability of those structures. We have decided on a process where we will subcontract our operations out to a Sri Lankan company which basically means we will supply a local company with the technology and sophisticated components to manufacture our products and export them to foreign markets under our brand Waterford Crystal. However upon choosing this process of subcontracting in Sri Lanka it is important to remember that along with many advantages, there...

Words: 814 - Pages: 4