Comparison of Corporate Governance Pratice in Banking and Non-Banking Financial Institutions in Mauritius
SURVEY ON THE STATE OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE IN MAURITIUS
REPORT October 2009
1. EXECUTIVE SUMMARY
Executive Summary [1/14]
In view of improving the overall governance in Mauritius, the NCCG has as its main aim to identify the key weaknesses and discrepancies in the governance of companies in Mauritius. In this regard, BDO De Chazal Du Mée and DCDM Marketing Research have been commissioned to conduct a survey on the state of compliance with the Code of Corporate Governance in Mauritius. The research was conducted between August and October this year and comprised of: Desk research to gather factual information on the extent of compliance with the Code Qualitative research among major stakeholders to have their views and insights on the extent of compliance of companies with the Code Quantitative research among a sample of 318 companies to survey the extent of application of the Code, its effects on the organisational and operational efficiency of the Boars and problems encountered by companies in implementing the Code Benchmarking exercise with international best practices and research conducted abroad to identify gaps between the Mauritian Code and its application with International Best Practices The key findings of the survey are presented thereafter. Compliance with the Code of Corporate Governance Survey indicates that compliance with the Code of Corporate Governance is still not the norm in Mauritius, in that only 30% of the companies state that they currently comply with the Code, 29% do not comply. A certain note of indifference for the matter was observed among companies, as denoted by the level of non-response to the survey [41%] Higher compliance with the Code is noted among Listed companies [including Banks and Non-Banking Financial Institutions] [83%] and State Owned Enterprises [44%], rather than among DEM Listed companies [36%] and non-listed companies [9%]
4
Executive Summary [2/14]
An analysis of the
REPORT October 2009
1. EXECUTIVE SUMMARY
Executive Summary [1/14]
In view of improving the overall governance in Mauritius, the NCCG has as its main aim to identify the key weaknesses and discrepancies in the governance of companies in Mauritius. In this regard, BDO De Chazal Du Mée and DCDM Marketing Research have been commissioned to conduct a survey on the state of compliance with the Code of Corporate Governance in Mauritius. The research was conducted between August and October this year and comprised of: Desk research to gather factual information on the extent of compliance with the Code Qualitative research among major stakeholders to have their views and insights on the extent of compliance of companies with the Code Quantitative research among a sample of 318 companies to survey the extent of application of the Code, its effects on the organisational and operational efficiency of the Boars and problems encountered by companies in implementing the Code Benchmarking exercise with international best practices and research conducted abroad to identify gaps between the Mauritian Code and its application with International Best Practices The key findings of the survey are presented thereafter. Compliance with the Code of Corporate Governance Survey indicates that compliance with the Code of Corporate Governance is still not the norm in Mauritius, in that only 30% of the companies state that they currently comply with the Code, 29% do not comply. A certain note of indifference for the matter was observed among companies, as denoted by the level of non-response to the survey [41%] Higher compliance with the Code is noted among Listed companies [including Banks and Non-Banking Financial Institutions] [83%] and State Owned Enterprises [44%], rather than among DEM Listed companies [36%] and non-listed companies [9%]
4
Executive Summary [2/14]
An analysis of the