GOOD corporate governance is vital for organisations to achieve practical benefits and bring significant opportunities to companies, the Institute of Directors of Zambia (IOD) has said.
And Minister of Commerce, Trade and Industry Margaret Mwanakatwe has reaffirmed that Government will uphold the principle of good corporate governance.
IOD president Sherry Thole said although achieving good governance was a complex task, companies prosper in an environment of good and balanced corporate governance.
She was speaking on Monday at the Mervyn King conference on corporate governance in Lusaka.
‘’Achieving good governance is a complex task and at the Institution of Directors of Zambia, we believe that sound governance offers practical benefits and that organisations should integrate such practices into their everyday operational processes to achieve success,” Ms Thole said.
She said the Institute of Directors was proud to be part of a team that preached and practiced good corporate governance to bring significant opportunities for organisations that embrace its principles.
“It is no secret that companies prosper in an environment of good and balanced corporate governance,” Ms Thole said.
And Mrs Mwanakatwe said Government would uphold the principle of good corporate governance to attract more investment and industrial growth.
She said the Government was in the process of reviewing the Companies Act to make it respond to the requirements of corporate governance.
‘’It may be of interest for you to note that the Zambian Government is in the process of reviewing the Companies Act in order to make it respond to the needs of modern times and requirements of corporate governance.
‘’The review of the Companies Act is in itself a clear demonstration of Government’s commitment to the principles of good governance.
‘’May I take this opportunity to state that good corporate governance attracts investment and thus my Government will always champion the cause of good corporate governance in this country in order for the country to attract significant investment that should lead to industrialization and employment creation,’’ said Ms. Mwanakatwe.