UK extends P6-M grant to improve corporate governance

The United Kingdom has extended a 82,299-pound (equivalent to P6 million) grant to the Philippine Stock Exchange (PSE) to improve corporate governance among listed companies.

PSE president Francis Lim said the grant will be used to fund research studies, consultative meetings, working sessions, consultants, information materials, media placements and other activities that would determine the appropriate corporate governance standards as well as the operational, structural and policy framework for the special corporate governance board.

“We at the PSE express our warmest gratitude to the UK government for this partnership and for choosing the Philippines and the PSE in particular, among other companies from 10 priority countries which vied for the support.  We view this grant not only as a funding support but also a vote of confidence for putting an abstract term like corporate governance into action,” said Lim.

“Through this funding, the PSE hopes to lead by example to the business community and also to bring our listed companies at par with international corporate governance practices,” Lim added.

UK Ambassador Peter Beckingham said the UK is now the largest investor in the Philippines.  He likewise noted that there are 200,000 Filipinos living or working in UK.

Aside from the Philippines, Beckingham said the UK government also granted financing to Nigeria, Indonesia, Brazil, Indonesia, Russia, Argentina, China and Mexico.

PSE chairman Jose Vitug said the grant should “give some sort of encouragement” for Philippine listed corporations to improve corporate governance practices and make them at par with international standards.

The exchange has continued to intensify corporate governance practices and included it as a crucial component of its reform agenda.  It has developed its framework of corporate governance to further enhance its reputation and credibility by building long-term shareholder value, providing stability and consistency and promoting transparency and truth in reporting.

“We are always looking for ways to improve and further our mission of being an exchange that is responsive to the needs of our investors and other stakeholders,” Vitug said.

 Last year, the PSE created the Corporate Governance Office to support the fundamental functions of corporate governance, enterprise risk management, strategy management and corporate social responsibility.  It also embarked on a corporate governance improvement program, which involves the development and conduct of various corporate governance-related initiatives in the PSE as well as with other market participants.