Corporate Governance Instruments
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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

Board Charter

  • 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