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Executive Care

Dec 09, 2009 (LBO) - Sri Lankan banks have been urged to select their boards of directors with care to ensure they hire capable people with integrity and not just based on friendship or wealth.
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Attorney general Mohan Peiris, the government's chief legal officer, said regulatory standards had been toughened in recent years amid heightened public expectations following a spate of corporate collapses.

"The bar has been raised - you are trustees," he told a symposium for bank directors organised by the Central Bank.

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"The courts will say 'if you cannot play that role effectively, please go'.

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Given their responsibilities, directors of banks cannot just take a minimalist approach and do the bare minimum, Peiris said.

"The courts will say you must walk that extra mile.

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Director should be people whose abilities are widely acknowledged by shareholders.
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"They should have experience, knowledge, expertise and good judgment to make an effective contribution to the bank to achieve its corporate objectives," Peiris said.
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He said it was up to the banks to choose their boards of directors carefully.

"Do you chose a friend who probably cannot contribute, or do you probably ch

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