1 Disclaimer The contents of this presentations reflects the views of the speaker and do not necessarily represent official policy or position of any institution 2 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) 3 Maldives: Overview Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf 4 Maldives: Overview Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf 5 Maldives: Overview Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf 6 Maldives: Overview Source: http://mma.gov.mv/Monthly%20Statistics/mar14.pdf 7 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 8 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 9 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 10 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 11 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 12 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 13 THANK YOU 14