Corporate Governance Instruments
Growing private sector - Participation in the economy
Shareholder Compact/Performance Contract
- Performance agreement between Government as the shareholder and the Board of a PE
- Sets out performance expectations of the Ministry with respect to agreed objectives and targets of a PE and how they will be met
- Describes expected governance standards of the PE
- Outlines relationship between shareholder and Board to support effective oversight
- Compliments the Companies Act/enabling statutes
- Provides clarity to Boards role and functions
- Outlines financial governance issues (compliance and reporting, risk management etc.)
- Establishes reporting lines and accountability
- Prescribes procedural matters
- Complements Memorandum and Articles of Association
PE Board nomination process
The key objectives of the PE Board nomination process include:-
- Serving as an objective and transparent basis for identifying suitably qualified candidates
- Constituting balanced boards with appropriate skills mix, experience and competencies
- Facilitating Board induction on all aspects of the parastatal work, including the responsibilities of the board