Ushering in the new : Corporate governance code

A new code of corporate governance is set to replace the existing code of 2003 as from 1^st July 2016. The implementation of the new code is an important moment for the business world in Mauritius. While the new code pursues the heritage of the Code of 2003, it also aims at bringing Mauritius to the next level, putting the country’s corporate governance levels at par with international standards.

The arrival of the new code is definitely an opportunity for Mauritius to lead by example. Some changes will be innovative and will give room for companies to adopt systems and practices that will fit in with their realities. Corporate governance was never about “one-size-fits-all” and the new code certainly provides room for companies to show their strong commitment through a “tailor-made” approach.

It is clear that many actors in Mauritius are familiar with the concept of corporate governance and realise how embracing good practices can enhance the performance of companies. Companies that have adopted practices recommended within the Code of 2003 are familiar with the principles and reporting requirements involved. We are confident therefore that the implementation of the new Code by companies will further promote Mauritius as an example of good corporate governance practices in the region and the world.

With the new code, Mauritius will be the first country in the world to use the “apply and explain” approach. South Africa aims to follow Mauritius with the upcoming launch of the King IV Report. This is a different approach to the traditional mandatory or prescriptive approach currently in use in all other codes of corporate governance. The “apply and explain” approach provides a set of principles that companies need to abide to and requires them to also explain how they applied said principles. It therefore provides companies with the ability to develop an approach that, while in line with the principles, fits with their rea-lities, needs and overall goal and vision.

However, because it represents a new way of embracing corporate governance, the new code will also require a natural adaptation period, from companies and stakeholders alike.

The Mauritius Institute of Directors welcomes and embraces the new Code of corporate governance and looks forward to helping all companies adopt its principles for the benefit of their stakeholders. The promotion of good corporate go-vernance practices is an integral part of our mission statement, and we are organising several training events on the subject of the new code, its implications, the reporting requirements and overall benefits.

Through our training events, participants will be given the tools to understand how to best take advantage of the new code, how to adopt the best practices and how to promote their companies’ practices among their stakeholders. Through our international and local experts, we aim to equip our audiences with the right tools with regards to the code but also with regards to regional and international expectations towards corporate governance practices.

A first set of workshops will take place between the 8^th and 17^th June, and further information can be found on our website www.miod.mu. Throughout the year, we will also organise additional events to help our members and non-members implement new business practices and will also provide tools for board members and executives to fulfil their role in line with the new requirements.

We look forward to welcoming you at one of our future events and wish the new corporate governance code all the success it deserves!

By Juan Carlos Fernandez Zara

CEO, Mauritius Institute of Directors