Manila, the Philippines, April 24, 2017—IFC,
a member of the World Bank Group, and the Philippine Securities and Exchange
Commission (SEC) are training 250 representatives of publicly listed companies
to help them implement a new corporate governance code that took effect
at the beginning of the year. Numerous studies show that companies with
good governance tend to perform better, offer better protection for shareholder
interests, and are thus more attractive to investors.
Five sessions have been organized between late March and mid-May at the
Philippine International Convention Center to train key company officers
in implementing the new code, which requires all publicly listed companies
to submit to the SEC their new corporate governance manuals by the end
The new code seeks to increase the responsibilities of the board, ensure
the competence and commitment of its directors, promote full disclosure
in financial and non-financial reporting, and bring the corporate governance
standards of Philippine companies closer to the international level. Publicly
listed companies are required to state in their annual reports whether
they have complied with the code provisions and explain reasons for non-compliance.
“Following the release of the new code, we are working with IFC closely
to encourage Philippine companies to adopt best corporate governance practices.
This is crucial to the development of a strong and sustainable capital
market in the Philippines,” said
SEC Chairperson Teresita J. Herbosa.
The release of the new code is part of IFC and the SEC’s partnership to
enhance the country’s regulatory framework and investment climate.
“IFC is committed to leveraging its global knowledge on corporate governance
to support our partners to enhance their long-term competitiveness,” said
Yuan Xu, IFC Country Manager for the Philippines. “These training roundtables
are part of our comprehensive efforts to raise corporate governance standards
and promote best corporate governance practices in Philippine companies."
IFC’s corporate governance program in the Philippines is implemented in
partnership with the State Secretariat for Economic Affairs of Switzerland.
In addition to working with the Philippine government and regulatory bodies,
IFC also supports the Institute of Corporate Directors and provides corporate
governance advice to Philippine companies. IFC has contributed to the adoption
of 95 corporate governance codes, laws, and regulations in more than 30
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org
About the Philippine Securities and Exchange Commission
The Securities and Exchange Commission is the Philippine government’s
regulatory agency charged with supervision over the corporate sector, capital
market participants, the securities and investment instruments market,
and the investing public. The commission’s mission is to develop and regulate
the capital market and supervise company registration toward good corporate
governance, protection of investors, widest participation of ownership,
and democratization of wealth.