0 asian roundtable on corporate governance robert zafft senior corporate governance specialist oecd...

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Asian Roundtable on Corporate Governance

Robert ZafftSenior Corporate Governance Specialist

OECD

The White Paper on Corporate Governance in Asia

Tokyo, Japan20 November 2003

The views expressed in this paper do not necessarily represent the opinions of the OECD or its Member countries

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The OECD and the World Bank organize and lead five regional roundtables to raise awareness of corporate governance and to develop regional self-assessments of corporate-governance successes and areas for further reform

The OECD and the World Bank organize and lead five regional roundtables to raise awareness of corporate governance and to develop regional self-assessments of corporate-governance successes and areas for further reform

OECD Principles of Corporate

Governance


Governance

Regional Corporate

Governance Roundtables

Regional Corporate

Governance Roundtables Global IssuesGlobal Issues

Regional Corporate Governance RoundtablesRegional Corporate Governance Roundtables

RegionsRegions• Asia, Russia, Latin America, Eurasia, South-eastern Europe• Asia, Russia, Latin America, Eurasia, South-eastern Europe

GoalsGoals

• Policy dialogue on realising the OECD Principles in the context of each country of the region• Self assessment and regional comparison of successes and areas requiring further effort• Knowledge sharing and networking among key regional decision makers

• Policy dialogue on realising the OECD Principles in the context of each country of the region• Self assessment and regional comparison of successes and areas requiring further effort• Knowledge sharing and networking among key regional decision makers

OutputOutput

• White Paper or comparative paper describing state of corporate governance in region and identifying areas for further reform

• Consensus document adopted by representatives from the region• Blueprint for future policy work and technical assistance

• White Paper or comparative paper describing state of corporate governance in region and identifying areas for further reform

• Consensus document adopted by representatives from the region• Blueprint for future policy work and technical assistance

FormatFormat• Peer discussion among senior policy makers, academics and businessmen using the OECD Principles of Corporate Governance as a conceptual framework

• Peer discussion among senior policy makers, academics and businessmen using the OECD Principles of Corporate Governance as a conceptual framework

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Between 1999 and 2003, the Asian Roundtable met five times to assess regional developments and to draft a White Paper identifying common policy objectivesBetween 1999 and 2003, the Asian Roundtable met five times to assess regional developments and to draft a White Paper identifying common policy objectives


Governance


Governance

Regional Corporate


Regional Corporate


Asian Roundtable MeetingsAsian Roundtable Meetings

19991999• Seoul, Korea – Regional Overview• Seoul, Korea – Regional Overview

20022002• Mumbai, India – The Rights and Equitable Treatment of Shareholders• Mumbai, India – The Rights and Equitable Treatment of Shareholders

20032003• Kuala Lumpur, Malaysia -- White Paper drafting session and workshop on enforcement and implementation

• Kuala Lumpur, Malaysia -- White Paper drafting session and workshop on enforcement and implementation

20012001• Singapore – The Responsibilities of the Board and the Role of Stakeholders

• Singapore – The Responsibilities of the Board and the Role of Stakeholders

20002000• Hong Kong China – Disclosure and Transparency• Hong Kong China – Disclosure and Transparency

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The White Paper on Corporate Governance in Asia puts forth six priority recom-mendations for corporate-governance reform and has thus far been welcomed or endorsed by the securities commissions of 75% of Asian-Roundtable countries

The White Paper on Corporate Governance in Asia puts forth six priority recom-mendations for corporate-governance reform and has thus far been welcomed or endorsed by the securities commissions of 75% of Asian-Roundtable countries

Asian White Paper Priority Recommendations (www.oecd.org/corporate)

Asian White Paper Priority Recommendations (www.oecd.org/corporate)

• Focus on public-service integrity and even-handedness• Increase regulatory and judicial resources and specialization • Use simpler and easier to enforce rules, as well as tools to augment resources (e.g., shareholder suits, whistleblowers)

• Focus on public-service integrity and even-handedness• Increase regulatory and judicial resources and specialization • Use simpler and easier to enforce rules, as well as tools to augment resources (e.g., shareholder suits, whistleblowers)

Adopt International Standards and Practices

Adopt International Standards and Practices

• Strengthen ownership disclosure rules and enforcement• Explore categorical prohibitions on related-party transactions• Provide shareholders with private and collective rights of action

• Strengthen ownership disclosure rules and enforcement• Explore categorical prohibitions on related-party transactions• Provide shareholders with private and collective rights of action

Improve Board Performance

Improve Board Performance

• Strengthen disclosure of ownership and financial interests• “Fit and proper” test for bank directors• Improve insolvency and creditor rights systems• Tighten regulatory oversight

• Strengthen disclosure of ownership and financial interests• “Fit and proper” test for bank directors• Improve insolvency and creditor rights systems• Tighten regulatory oversight

Improve enforcement

Improve enforcement

• Institute training and codes of conduct• Tighten rules for “independent” directors and fiduciary duties for all directors• Promote director-accountability mechanisms (e.g., lawsuits, cumulative voting)

• Institute training and codes of conduct• Tighten rules for “independent” directors and fiduciary duties for all directors• Promote director-accountability mechanisms (e.g., lawsuits, cumulative voting)

Protect Minority Shareholders

Protect Minority Shareholders

Raise awarenessRaise awareness

Improve Bank Governance

Improve Bank Governance

• International Accounting Standards (IASB)• International Standards for Audit (IFAC)• International Organisation of Securities Commissions Principles

• International Accounting Standards (IASB)• International Standards for Audit (IFAC)• International Organisation of Securities Commissions Principles

• Training and education• Codes of conduct • Technical assistance

• Training and education• Codes of conduct • Technical assistance

Asian Roundtable Sponsors: Government of Japan, Global Corporate Governance Forum, ADB

Asian Roundtable Sponsors: Government of Japan, Global Corporate Governance Forum, ADB

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Focusing on the priority areas for reform identified by the White Paper, the next phase of the Asian Roundtable will address practical implementation and enforcement issues

Focusing on the priority areas for reform identified by the White Paper, the next phase of the Asian Roundtable will address practical implementation and enforcement issues


Governance


Governance

Regional Corporate


Regional Corporate


Roundtable Implementation and Global Issues PhaseRoundtable Implementation and Global Issues Phase

ImplementationImplementation

•Seoul, Korea, mid-2004 •Seoul, Korea, mid-2004

Global IssuesGlobal Issues

• International conference on issues recurring among several regional Roundtables where a global perspective is appropriate

• e.g., Alternative dispute resolution and corporate governance (mid-2004)

• International conference on issues recurring among several regional Roundtables where a global perspective is appropriate

• e.g., Alternative dispute resolution and corporate governance (mid-2004)

ImplementationImplementation

0 asian roundtable on corporate governance robert zafft senior corporate governance specialist oecd...

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