APEC SOM IAPEC SOM Ionon

Corporate GovernanceCorporate Governance

February, 2001February, 2001BeijingBeijing

Stephen CheungStephen CheungPeer Assistance Review NetworkPeer Assistance Review Network

PECCPECC

ObjectivesObjectives

Key governance issues common to Key governance issues common to economies in East Asiaeconomies in East Asia

Mechanisms for promoting corporate Mechanisms for promoting corporate governance reformsgovernance reforms

Cooperation and coordination between Cooperation and coordination between economieseconomies

Key initiatives for promoting corporate Key initiatives for promoting corporate governancegovernance

ObservationsObservations

Need for improvementNeed for improvement

Different stage of developmentDifferent stage of development

Stealing is not acceptable in every Stealing is not acceptable in every cultureculture

Consultation ProcessConsultation Process

Market ParticipantsMarket Participants– AnalystsAnalysts– Funds managersFunds managers

Corporate DirectorsCorporate Directors RegulatorsRegulators

ActionsActions

1.1. A joint distance learning (video A joint distance learning (video conference) with the World Bank conference) with the World Bank Institute, 22-24 February 2001Institute, 22-24 February 2001

BeijingBeijing BangkokBangkok SingaporeSingapore ManilaManila WashingtonWashington

ActionsActions

The course is designed to highlight:The course is designed to highlight:

1.1. The importance of sound corporate governance The importance of sound corporate governance practices at corporate and country levelspractices at corporate and country levels

2.2. The economic, financial, and social rewards of The economic, financial, and social rewards of sound corporate governance practicessound corporate governance practices

3.3. The adoption of specific corporate governance The adoption of specific corporate governance practices by regulators and corporationspractices by regulators and corporations

ActionsActions

Three objectives are to:Three objectives are to:

1.1. Understand the state of corporate governance Understand the state of corporate governance systems in modern market economiessystems in modern market economies

2.2. The implications of sound corporate governance The implications of sound corporate governance systemssystems

3.3. Acquire skills and techniques in implementing Acquire skills and techniques in implementing corporate governance improvements through the corporate governance improvements through the board of directors and regulatorsboard of directors and regulators

Action learning approachAction learning approach Interaction with different economies in AsiaInteraction with different economies in Asia Local case studiesLocal case studies ParticipantsParticipants

– RegulatorsRegulators– Corporate DirectorsCorporate Directors– AcademicsAcademics

Actions:Actions:

Actions:Actions:

2.2. A working meeting in April, 2001 in A working meeting in April, 2001 in SingaporeSingapore

Codes of corporate governanceCodes of corporate governance

– Survey on the individual Asian Survey on the individual Asian economieseconomies

SurveySurvey

Specifically, we ask three questionsSpecifically, we ask three questions

– What elements of existing and planned regulatory What elements of existing and planned regulatory arrangements in your economy align with the arrangements in your economy align with the OECD principles?OECD principles?

– In what areas and in what ways do you assess there In what areas and in what ways do you assess there is a need to modify, add, or remove elements of is a need to modify, add, or remove elements of OECD principlesOECD principles

– What elements of the OECD principles are judged What elements of the OECD principles are judged to be inapplicable to your economyto be inapplicable to your economy

=>=> Experience of implementation Experience of implementation

ActionsActions

Corporate governance scoreboardCorporate governance scoreboard– Measurement method on the soundness of Measurement method on the soundness of

corporate governancecorporate governance

=>=>To be presented to APEC officials by the To be presented to APEC officials by the

end of May 2001.end of May 2001.

Summary Results for Bank/Publicly-Listed Corporation: ______________________ Date: ______________________

SCORECARD FOR CORPORATE GOVERNANCE

Stockholder RightsWeight: 20%Score:

TransparencyWeight: 20%Score:

Total Score

100%

AuditingWeight: 15%Score:

Commitment to CGWeight: 15%Score:

Board GovernanceWeight: 30%Score:

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