Necessity of implementing the principle of corporate governance to protect the interests of shareholders – Tejaratnews
According to Tejarat News, today, Tuesday, July 13, a conference hosted by Tehran Stock Exchange on the topic of corporate governance was held with a delay of about an hour. During this conference, Majid Eshghi, head of the Tehran Stock Exchange Organization, expressed hope regarding the implementation of the corporate governance law.
Majid Eshghi, head of the Tehran Stock Exchange, said in this meeting: “The world has been working in this regard for more than 50 years, and this issue has changed a lot.” After the 2008 financial crisis, corporate governance was taken very seriously and took on a different meaning. Corporate governance regulations have been established in our country; But we need more activity of organizations and financial institutions in this field.
Balance between the interests of stakeholders
Eshghi continued to be hopeful about the implementation of corporate governance: if corporate governance is implemented properly, the balance between the interests of the stakeholders will be established. Corporate governance will protect the interests of investors. Corporate governance will increase the health of the market and the sustainability of companies. It also seeks to reduce risk and increase the responsibility of the company in the social environment and reduce financial costs.
The head of the stock exchange organization said in the continuation of the corporate governance perspective conference: The stock exchange organization dealt with the issue of amending the corporate governance guidelines last year. This was while four to five years had passed since the approval of this directive, but it was not possible to implement it, so we brought it to the implementation stage by correcting the relevant challenges. Of course, implementing this instruction alone is not enough and we must have a series of trainings in this regard.
Eshghi continued: Sometimes in the violations and cases committee that is investigated, we come across interesting phenomena such as non-official members of the publishers’ board of directors stating that they are unaware of a decision. In some cases, this creates a challenge. It should be noted that the decisions of the publisher’s board of directors concern all members, therefore, the requirements of the corporate governance guidelines such as the commercial law, disclosure and acceptance guidelines, and other provisions that are required to be followed should be listened to in the training courses.
The head of the stock exchange organization said at the corporate governance perspective, requirements and challenges conference: the corporate governance guidelines should be expanded, now we are thinking of turning it into a law, so that its executive guarantee can be increased. We intend to raise this issue in the parliament and its provisions will have more legal support.
The need to respect the principle of corporate governance
Eshgas emphasized: Considering the atmosphere of the capital market and the expansion of the shareholding community to 60 million people and the activity of a thousand financial institutions, the implementation of corporate governance is inevitable and without its implementation we cannot have a healthy market.
He continued: We are looking for the approval of a mediator to measure and rate the implementation of corporate governance so that the shareholders are informed about this. Many of the problems of the capital market, which are imposed on us from outside the market, come back to non-compliance with corporate governance.
Creating healthy competition in the capital market
In this meeting, Mojtaba Tawangarh, a member of the Supervisory Council of the Supreme Council of the Stock Exchange, emphasized the need to pay serious attention to corporate governance by increasing the influence of the stock exchange in the society, and said: transparency, accountability, good supervision, the health of the ruling authority and decision maker are considered to be positive features of the implementation of corporate governance. . Also, the existence of favorable decision-making can provide the basis for corporate governance, the realization of the rights of small shareholders and beneficiaries, the facilitation of financing and the creation of healthy competition.
Tawanger continued: The country’s capital market is one of the country’s financial markets, which plays an important role in financing the government, companies and public institutions. Due to the liberalization of equity shares, a large part of the people in the society are considered the beneficiaries of the society; Therefore, it is necessary for the legislator to pay special attention to the issue of governance in the capital market and the issue of corporate governance.
Parliament’s efforts for reforms in the field of corporate governance
The supervisory member of the Parliament in the Supreme Council of the Stock Exchange stated: In the capital market law, various rulings related to this market have been discussed and it seems that it has a good comprehensiveness; However, in the Economic Commission of the Parliament, we are trying to have favorable structural reforms, especially in the field of corporate governance.
Tawanger continued: The capital market is one of the most important markets of any country in the world, and due to the large presence of natural and legal entities in this market, the issue of corporate governance and governance in it is always a concern of statesmen. In the world, they have arranged this issue in such a way that efficiency, justice, transparency and ease of financing are created.
He added: The legislative authority in Iran’s securities market law has been monitoring the optimal governance in the capital market and has tried to achieve this goal in several rulings, but despite this, the governance of the capital market is facing challenges.
Tawanger stated: The centrality of governance in the reform of the securities market law is related to issues such as increasing the independence of the regulatory authority and at the same time its accountability, making decisions and market-oriented policies more specialized, improving supervision and control. In the amendment of the securities market law, the focus is on the observance of shareholders’ rights, including the banning of Todali shares, which have negative financial and corporate governance consequences.
Strengthening trust among shareholders
Mahmoud Gudarzi, CEO of Tehran Stock Exchange Company, also stated the necessity of implementing the principle of corporate governance to increase trust in the stock exchange: Last year, my colleagues at the Tehran Stock Exchange came to the conclusion that due to the concern of strengthening trust in the capital market and article two of the Securities Law – increase Transparency and accountability – let’s organize this conference.
The main goal was to let stock and over-the-counter publishers know by what measure and standard they are going to be measured. We hope to define an index as corporate governance; Of course, the concept of “corporate governance” has been in the world for about 50 years, and the world’s stock exchanges no longer talk about this issue.
In the continuation of his speech, he added: The question of corporate governance is, what kind of sustainable growth can this issue bring? Without a sharp look at businesses, sustainable growth cannot be achieved. I hope this conference, by injecting a new look at the body of the capital market and the relationship between the executive directors of the companies and the stakeholders of the market, will be a new beginning to increase the trust and accountability of stock and over-the-counter issuers.
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