PNGX to introduce new code for users

THE PNG National Stock Exchange (PNGX) plans to introduce a new corporate governance code to guide boards of listed issuers.
It released the proposed code for public consultation yesterday.
It contains 17 standards, within each are a number of recommendations.
“Each PNGX listed company is required under the Listing Rules to have corporate governance policies which are appropriate having regard to the nature and scale of its operations,” PNGX said in a statement.
“While the proposed code has been developed by reference to global standards and practices adopted in other markets, it has been adapted to have regard to the characteristics of the PNG market and to be fit for purpose for the country.
“The Standards and Recommendations are not prescriptive.
“Each company is at liberty to either adopt the Standards and Recommendations or not.
“However, as they are standards of expectations established through a mechanism of industry and stakeholder consultation.”
It is expected that directors should disclose in the company’s annual report the extent to which the company has adhered to the Standards and Recommendations, and where there has been no or partial adoption, to give reasons.
PNGX chairman David Lawrence, said: “Efforts to enhance the corporate governance standards in PNG are one contribution PNGX can make, in partnership with like-minded stakeholders, to lift the reputation of PNG, improve its ability to attract investment and lower the cost of capital for the country.
PNGX general manager, Elizabeth Wamsa, said: “The code includes recommendations to encourage a broader pool of directors for PNG companies, especially female directors.”