SEC’s dialogue with Public Listed Companies today

Tuesday, 23 July 2019 01:00 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission of Sri Lanka (SEC) will engage Public Listed Companies in a dialogue today between 4.30 – 7.30 p.m. at the Grand Ball Room, Hilton Colombo.

This dialogue, which was originally intimated to PLC’s on 3 April, and scheduled for 25 April, was rescheduled due to the tragic Easter Sunday events. In selecting the new date, SEC was conscious of the many Annual General Meetings and other events in June/early July and in order to ensure the participation of a wide cross section of PLC's, has selected this date.

SEC Chairman Ranel T. Wijesinha remarked: “In order to provide each stakeholder group with adequate opportunity to engage the capital market regulator, we intend to have dates dedicated to each stakeholder group in future. These fora will be scheduled frequently and the idea of having such fora is to enable the Director General and directors to meet and interact with regulatees and stakeholders regularly whilst yet retaining their Independence and objectivity and at the same time providing the regulatee an opportunity to seek clarifications.

“Over time, we hope these will help to bridge the gap between the regulator and regulatee, such that we align interest. This is also an opportunity to help the regulator build capacity and be more aware, as well as to provide an opportunity for the Chair, CEO and senior Directors of regulatees to build capacity within new board members and key management personnel such as the Chief Internal Auditor, Chief Risk Officer and the Head of Compliance."

The rescheduled forum was intimated to PLC’s by letter dated 29 June, and is expected to draw representations from all Chairpersons of PLCs and Chief Executive Officers (CEO’s). In the event the Chairperson or the CEO are unable to attend, participation of two others is recommended, from among the Deputy Chairperson, Chairperson of the Audit Committee, Chairperson of the Risk Management Committee (the Integrated Risk Management Committee in the case of banks) and/or the Company/Board Secretary.

Where a company has combined the functions of Chairman and CEO, nominating two additional persons is suggested so that such company is represented by a total of three persons.

The main focus of the dialogue will be the following:

1.Corporate Governance Framework – CEO and Chairman Duality

2.Continuous Listing Requirement Rules – Minimum Public Holding

3.Board Room Governance matters with specific reference to role of the Chairman Audit Committee, Chairman Risk Committee, Company Secretary, Chief Legal Officer as contributors to regulation and compliance

4.The role of Auditors and other service providers and their impact on regulation and compliance

5.Communications with the SEC as well as the CSE

6.‘Invest Sri Lanka Fora’ (on lines similar to promotional events conducted in London and Edinburgh in 2018 and in Singapore in April to promote Sri Lanka as a destination for Foreign Portfolio Investments)

7.Initiatives towards women participation on Boards

All PLC's were requested to make oral submissions at the fora which will cover any issues related to the aforesaid matters, and if they desire, to make submissions in writing. Many have already made detailed submissions in writing. SEC confirmed that over 200 persons have confirmed their participation.