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Disclaimer
The contents of this presentations reflects the views of
the speaker and do not necessarily represent official
policy or position of any institution
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Why is it Important to Maldives?
 ‘Demonstrably good corporate governance practices
are increasingly important in determining the cost of
capital in a global capital market.’
 ‘Companies in Maldives must be equipped to compete
globally and to maintain and promote investor
confidence both in Maldives and internationally.’ –
Report on Corporate Governance in Maldives (Kala
Anandarajah, Rajah & Tann - July, 2006)
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Maldives: Overview
Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf
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Maldives: Overview
Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf
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Maldives: Overview
Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf
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Maldives: Overview
Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf
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Corporate Maldives
1996 - 2006:
Maldives Companies Act (10/96) and regulations laid
down the basic framework for corporate governance
2006 onwards:
 Maldives Companies Act (10/96) and regulations
 CMDA Corporate Governance Code
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Corporate Maldives
 In 2011, Maldives officially graduated from Least
Developed Country (LDC) to Middle-Income Country
status
 Move to Middle-Income status resulted in the loss of
various privileges and benefits enjoyed across trade,
development assistance and UN budgetary support
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Challenges
 Consecutive years of Budget Deficit
 Emerging sectors in the economy
 Liquidity crunch – 364 days T-Bill, 10.64%
 Micro, small and medium enterprises
 Registered Companies – 9245
 State Owned Enterprises – 45
 Listed Companies - 6
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Where do we stand?
 Ground work is complete, we have introduced a basic
framework for Corporate Governance in the Maldives
in 2006
 Comply or explain approach
 Mandatory to adopt by listed companies - Listing
Rules of the Maldives Stock Exchange
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CMDA Corporate Governance Code
Mandatory Requirements:
 Board Matters
 Remuneration Matters
 Management Matters
 Audit, External Audit & Compliance
 Company Secretary
 Shareholder Rights
 Disclosure Requirements
 System to Raise Concerns
Voluntary: Investor & Media Relations, Sustainability
Reporting
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Next steps
 Review the policy framework to address the specific categories of
companies adopting Corporate Governance Code
- Listed Companies
- Micro, Small and Medium Enterprises
- State Owned Enterprises
 Raise awareness on major developments and challenges
 Strengthen enforcement mechanisms (Rule-based/Comply or explain)
 Promote governance & accountability through Companies Act
(foundation)
 Corporate Governance Reform – National Agenda
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THANK YOU
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