Compromise is often seen as a sign of weakness in Russia so it’s encouraging to see one of the country’s most powerful men giving ground in a high profile conflict over corporate governance. Six months after denying that Rosneft had any obligations to minority shareholders in TNK-BP’s listed unit, Igor Sechin, the chief executive of Russia’s state oil company, appears to be backing down. Continue reading »
By George Dallas of F&C Investments
Reeling from the shock of the $2bn accounting scandal at Satyam Computer Services in 2009, Indian regulators have responded with a plethora of initiatives to rebuild investor confidence in the country’s capital markets.
These were welcome developments but have resulted in a somewhat disjointed governance regime. In January, the Securities & Exchange Board of India (SEBI) published a public consultation paper on proposed revisions to the corporate governance requirements for listed companies in India. The idea is to create a more coherent and progressive corporate governance framework, with the aim of re-establishing India as a destination of choice for international investors. Continue reading »
Regulations introduced last week obliging Russian state companies to pay at least 25 per cent of their profits in dividends look like a step in the right direction for long suffering minority shareholders.
But it appears that state utilities are simultaneously taking an even bigger step backwards, launching yet another round of state-funded secondary share issues that raise questions about the government’s commitment to corporate governance. Continue reading »
Indonesia should consider revamping its corporate governance standards in the wake of the Bumi affair.
Even though the case involves a dispute among private shareholders, the government must tread carefully because the affair is seen as “a bad precedent” for the country.
That’s the view of Chatib Basri, chairman of the government’s investment coordinating board, (pictured) who told beyondbrics of his concern about Bumi’s impact on the investment climate. Continue reading »
By Steven Williams of CEB
The multi-million dollar discrepancy between asset valuations in London and Indonesia, which has wiped around 50 per cent off the value of the coal miner Bumi’s shares in the past week, is a stark demonstration of the dangers faced by companies expanding their global operations.
Bumi is not the only company which faces the risk of losses from compliance failures. In research we conducted with 125 of CEB‘s member companies around the world, we found 15 per cent of employees had observed some form of corporate misconduct but only a fifth of that information was reported to executives. Corporate centres are effectively flying blind on compliance – and the problem is particularly serious in emerging markets. Continue reading »
Samsung, South Korea’s biggest conglomerate, could do with some tips from Sweden’s Wallenberg family about how to become a loved company.
Marcus Wallenberg, chairman of Skandinaviska Enskilda Banken and a member of the powerful Wallenberg family, visited Seoul this week with a large business delegation and met Lee Jae-yong, the chief operating officer at Samsung Electronics and the group’s heir apparent. Continue reading »
Facing the dilemma of reporting an act of wrongdoing in the workplace? Indian employees, whose attempts to report workplace misconduct often end up jeopardising their jobs, need fret no more: companies are outsourcing whistle-blowing services to third-party consultancies. Continue reading »
By Alfredo Behrens of the FIA business school in São Paulo
Which is the best way to run a business: paternalism or meritocracy? It depends what kind of society you are operating in. Here is a tale of video production in Brazil. Continue reading »
The trial of Boris Berezovsky vs Roman Abramovich has highlighted Russia’s political and corporate governance issues. But will the case impact foreign investor appetite in the country? Daniel Garrahan reports.
Video after the break:
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Turkey has just announced a change that corporate governance activists are likely to applaud – but which also appears to throw a lifeline to the Turkish group that controls Turkcell, the country’s biggest mobile phone group.
In a decree issued on Tuesday with immediate effect, Turkey’s Capital Markets Board said the country’s top listed companies must have no fewer than two independent members on their boards, and that independents must account for at least a third of the board total. Continue reading »