Accra, Mr Yaw Osafo Marfo, Senior Minister, has urged directors of organisations to be independent in action and thinking and operate above board, saying independence starts with self-confidence.
Directors must bear in mind that there are liabilities associated with the position including criminal prosecution and must play their role fairly and avoid conflict of interest, which has become a major obstacle to sound corporate governance practice, he added.
The Senior Minister said this in a speech read on his behalf in Accra at a bi-monthly business meeting organised by the Institute of Directors.
The event was on the theme: Stimulating Public-Private Sector Dialogue: The Place of Key Stakeholders in Leadership and Corporate Governance in the Accelerated Socio Economic Development of Ghana.
He advised directors who cannot commit time to serve on boards not to accept the position since such actions affected the smooth running of operations.
Mr Marfo said Directors must ensure transparency and accountability in that they were entrusted to govern and manage organisations and as such it behoved on them to render account of their stewardship to owners.
He said in a competitive world, corporate governance played an important role to facilitate robust economy that could withstand shocks that easily derailed economies such as low commodity prices, high imports, foreign exchange fluctuations and high interest rates.
He said government was working out modalities of implementing various economic policies leading to job creation, saying their outfit was putting in place measures to enhance the standards of corporate governance in the country.
Mr Marfo posited that sound and sustained good corporate governance practices have the benefit of strategic improvement in the quality and efficiency of board members, improved leadership, and increase in Gross Domestic Product through increased output.
Mr Henry Kerali, Country Director of the World Bank, urged government to provide business environment to enable private entity to thrive in.
Mr Kerali stressed the bank’s commitment to supporting the private sector and called for good corporate governance policies and effective dialogue between the private and public sector for competitiveness in the world of market.
Mr Frederick Ofosu Darko, President of Institute of Directors, said the Institute was established among others to provide opportunities to network and share ideas on national agenda in corporate governance.
He said the Institute had outlined four main initiative including bimonthly meetings to stimulate public engagement, public private platform, awards scheme and annual directors week to promote its activities and raise awareness of the role of directors.
Source: Ghana News Agency