Thursday Dec 12, 2024
Thursday Dec 12, 2024
Thursday, 14 August 2014 00:00 - - {{hitsCtrl.values.hits}}
With this in mind, SLID (Sri Lanka Institute of Directors), organised a two-day program endorsed by the Securities and Exchange Commission of Sri Lanka to sustain and support corporate governance in Sri Lanka, by reinforcing the board member’s function as an agent of change and providing a refresher course on the structures and processes required by legislation.
Based on material developed by the International Finance Corporation but adapted to meet local requirements, the program held at Cinnamon Grand played host to professionals and leaders from a variety of fields, who shared their insights with expert facilitation from the trainers, creating a synergistic learning environment which blended theory with involvement and experience. “It was really useful as we gained a lot of practical insights,” said Sitari Jayasundara, Head of Legal Affairs – HNB Assurance, commenting on the impact of the program.
Suran Wijesinghe, Director – Nations Trust Bank, speaking of his experience said: “It was a very stimulating program with lots of interactive sessions and practical experience and enhanced the knowledge and awareness of the duties and responsibilities of being a director.”
Vocal participation from younger delegates brought new perspectives to the fore, challenging those with more established views to either defend or reconsider traditional ways of thinking. Using a mix of audiovisual aids, teamwork and role-playing to engender discussion and debate, the trainers skilfully addressed such issues as the culture of a board and how its composition could create balance (or imbalance).
The sessions created opportunities for networking and lively discussion ensued with delegates debating whether it was necessary to intentionally create diversity in gender and ethnicity amongst members, or if merit as a sole deciding factor would automatically ensure diversity as well as facilitating an exchange of ideas from different industries. Interestingly, studies show that companies with diversified teams gain over 53% more returns on equity.
Dilemmas that a board could face were the subject of animated discussion too, such as the differences made by how insulated or involved in the business board members are, choices between sources of information, how vision could reach equilibrium with mitigation of risk, and why women are less likely to join Sri Lankan boards.
“I thought that corporate governance was simply behaving as a corporate citizen in a manner fully compliant with the laws of the land. Here I learnt that it is more than that and has a larger ambit. I gathered a lot of information from the role-play and the panel discussion,” said Chandima Athukorala, Director – A. Baurs, about his involvement in the program.
Role-playing throughout allowed delegates to test out how they would apply their individual personalities in combination with the material covered in a real-life situation, with scenarios panning out in unexpected directions, emphasising the need to be prepared for change when entering the boardroom. In one instance, participants were put in the shoes of board members of a family-owned business and were asked to make decisions on succession, creating awareness of common issues.
“It was very educational in that a few points were brought up that I wasn’t even aware of such as the role of deemed directors. The people presenting and the panel were able to give a lot from their own experience. Also it’s very pertinent as a family owned business moving forward to have the corporate governance in place,” said Joys Chokatte, Director – Trend Setters/Diamantaire Holdings. The concluding panel discussion featuring Reyaz Mihular – Managing Partner/Country Head, KPMG, Arittha Wickramanayake – Precedent Partner, Nithya Partners, and Vijaya Malalasekera – Chairman, Bogala Graphite Lanka PLC and moderated by Ranjit Fernando, former Chairman of United Motors Lanka PLC was the source of many insights born of years of experience.
Sheran Jayawardena – Chief Strategic Officer, Majestic Electricals affirmed that although some of the content was already known, the practical applications were useful, especially from those in the panel. The program culminated in the awarding of certification from the Sri Lanka Institute of Directors to the participants. SLID can be contacted by visiting slid.lk or on 2301646-8 for more information on this or future programs or regarding membership.
