Subscribe to Fiji Sale - Lists Properties on Mortgagee Sale in Fiji
Powered by groups.yahoo.com

This blog is brought to you by Gilbert & Samuels Company Limited, a financial advisory services and consulting company based in Suva, Fiji.
To contact the authors of this blog, please call telephones (679) 3342719, (679) 3544897 or e-mail info@gilbert.com.fj.


Monday, July 16, 2007

Capital Markets Development Authority CEO emphasises Corporate Governance

The new Chief Executive Officer of the Capital Markets Development Authority, Mrs Mereia Volavola, has emphasised that good corporate governance is essential to improve accountability for companies operating in the capital markets.

Read more on her comments in an article from the Fiji Times below.


"Good governance key, Monday, July 16, 2007

Good corporate governance is essential to help companies and financial intermediaries improve accountability, says the new chief executive officer of the Capital Markets Development Authority, Mereia Volavola.

Speaking at her welcoming ceremony on Friday, she said financial intermediaries were essential in fostering financial stability and healthy economic growth.

Good corporate governance enabled more efficient use of capital and attracts quality and long-term investors at lower costs.

In the long run, the country's competitiveness and development will improve if good corporate governance is exercised.

Good governance is one area the CMDAwill focus on in the years ahead, Ms Volavola said.
She said many companies in Fiji were yet to fully appreciate how the stock and bond market works and how companies can benefit from it through enhanced company value and flexibility.

There are 16 companies listed on the Suva-based South Pacific Stock Exchange compared to six in 2000.

Market capitalisation, said Ms Volavola, rose from $243million in 2000 to $897million this year, representing a 269 per cent increase.

The CMDA she said, would continue its education program on the significance of the stock exchange.

"More companies need to be listed on the South Pacific Stock Exchange. Some large companies the insurance companies, the commercial banks and tourism companies remain unlisted," Ms Volavola said.

"Experience to date shows that most companies continue to satisfy their capital needs predominantly by using retained earning, bank-funded debt or through private equity deals with associates and friends."

With the review of the CMDA legislation, Ms Volavola said there was a need for a balance between a regulatory framework that guides peoples actions and economic freedom that allows them to innovate, experiment and take risk.

"One of the most important factors in determining how much material progress a society made was its ability to maintain a vigorous capital market," she said.

"Creating prosperity had largely been a matter of bringing together people who are prepared to invest capital with people who are able to use it to create wealth.""

Labels: , ,

0 Comments:

Post a Comment

<< Home