The Malawi Stock Exchange (MSE) has cited poor board composition as a major pitfall among listed companies.
The local bourse also laments poor disclosures, reporting and unaccountability as major hindrances for prospective companies to list.
This came out during a business breakfast organised by the MSE on Tuesday under the theme ‘Corporate Governance and its Role in Business’.
MSE Chief Executive Officer (CEO) John Kamanga said corporate governance is about structures and systems which must be put in place for proper direction of the company.
“For most unlisted companies, there are issues on disclosures and reporting. Mostly there is no mechanism where the shareholders of the company get information on a timely basis because the shareholder makes the investment decision based on the information which is available on their fingertips.
“Even some of the State-owned companies have operated for about three to four years but don’t have audited accounts. So, you tend to wonder where you’re taking the company,” Kamanga said.
Press Cane Limited CEO Bryson Mkhomaanthu said corporate governance is the normal way of doing business and many companies are following the good practices despite its evolving nature.
“Many things are coming up and it’s important that we gather like this to continue talking to each other, giving updates and updating all of us, things that are trending,” Mkhomaanthu said.
Access Malawi Limited General Manager Chimwemwe Khonje said issues surrounding corporate governance are pertinent to how the country moves forward.
