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The Securities and Exchange Commission (SEC) and the national accounting body ICASL will introduce a new governance code for listed companies with some mandatory provisions. A co-chair of the ICASL and SEC committee, drafting the new combined code, told LBR that provisions relating to the boards’ involvement in strategic management of the company, responsibility for internal controls and some provisions about the chairman’s role could be mandated.
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Two voluntary codes, one on Corporate Governance and another on Audit Committees, promoted by the Institute of Chartered Accountants of Sri Lanka, guide boards of listed companies here.
In a joint effort the ICA and the SEC are working on combining these voluntary codes and making some clauses mandatory.
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A co-chair of the committee working on the combined code Ajith Cabraal is keen to see areas like board practices being made mandatory.
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"About certain board practices, to bring greater accountability should be made mandatory," says Ajith Cabraal,