Brunei introduces Corporate Governance Code
BANDAR SERI BEGAWAN
BRUNEI has introduced its Code of Corporate Governance to promote transparency and investor confidence that is needed for private companies to succeed in getting financing for business expansion and growth.
In a press statement yesterday, the Ministry of Finance said “His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam has consented for the introduction of the Code of Corporate Governance, Brunei Darussalam for companies registered in Brunei Darussalam”.
The Code is not legally binding. It is designed as a reference guide.
It encourages companies in Brunei to adopt best international practice on corporate governance but compliance with the Code is voluntary.
“However, it is strongly recommended for companies in Brunei Darussalam as improved corporate governance has the potential to significantly boost productivity growth and create jobs,” the ministry said.
Corporate governance, which generally refers to the structures and processes by which companies are directed and controlled, has long been regarded as critical to creating a business climate that is pro-business and pro-investment.
The ministry said corporate governance is important in Brunei today as it “will promote investor confidence which will be important for companies when developing new sources of finance for expansion and growth”.
Among the objectives of the introduction of the Code is “to strengthen governance and support their (the companies’) long-term growth and development, by adopting best international practice”.
“The Code among others stipulates that each company establish an effective board to lead the company; an accountable management; rules which promote transparency and governance,” the ministry said.
Copies of the Code of Corporate Governance Brunei Darussalam, may be obtained from the Registry of Companies and Business Names Division at the Ministry of Finance or at the Ministry of Finance’s website www.mof.gov.bn
The Brunei Times