Unlike Admiral Nelson, see the extract of the story below from Wikipedia, I have two eyes through which to assess the landscape, the corporate governance and communications landscape in Zimbabwe. And, unlike him, I am not ignoring what this investor relations landscape is telling me. In fact I am absorbing the fact that very few listed companies in Zimbabwe, if any, have disclosure committees. This can be attributed to the fact that that
- legislation does not exist that requires them and
- that listed company executives do not have to worry about this area of corporate governance because there is an absence of investors or stakeholders demanding accountability in this respect. Furthermore there is little or no commercial value to be had from taking an altruistic view.
So a recent study by Corporate Counsel.net was interesting to me because it highlighted the extent to which our African markets differ from those in First World markets. Here is the brief overview from Corporate Counsel.net:-
Survey Results: Disclosure Committees
We have posted the survey results regarding the latest disclosure committees trends, repeated below:
1. Back in mid-2008, we conducted a survey on disclosure committees (here are the results) – we are now canvassing to see if practices have changed. Our company:
- Has a disclosure committee – 96.7%
- Doesn’t have a disclosure committee (if you check this box, you are done) – 3.3%2. Our disclosure committee has:
- More than 10 members – 32.1%
- Between 8-9 members – 39.3%
- Between 6-7 members – 21.4%
- Between 4-5 members – 7.14%
- Has less than 4 members – 0%3. Our disclosure committee has the following types of members:
- CEO – 27.6%
- CFO – 75.9%
- Controller – 86.2%
- General Counsel – 86.2%
- Securities Counsel – 82.8%
- Compliance or Risk Management – 41.4%
- Investor Relations Officer – 72.4%
- Internal Auditor – 55.2%
- Officer from a Business Unit – 55.2%
- Other – 55.2%4. For our disclosure committee:
- Someone takes minutes of meetings – 72.4%
- We don’t keep minutes of our meetings – 27.6%
I fail to see on the horizon a catalyst that will enable us to catch up with the First World in this key area. Disclosure Policies need disclosure committees to manage them. This issue matters because in the absence of checks and balances on proper communications practices investors raise their risk profile of investing, require a higher return and this increases the cost of raising capital.
On a slightly different note, In South Africa there is supposed to be a direct communications channel between investors and Disclosure Committees, by law. I don’ t see these channels. A secure website link to the Chairman would be way forward I guess.
Thanks to Wikipedia.org for the text below. Please donate to them….
On the morning of 2 April 1801, Nelson began to advance into Copenhagen harbour. The battle began badly for the British, with HMSAgamemnon, HMS Bellona and HMS Russell running aground, and the rest of the fleet encountering heavier fire from the Danish shore batteries than had been anticipated. Parker sent the signal for Nelson to withdraw, reasoning:
I will make the signal for recall for Nelson’s sake. If he is in a condition to continue the action he will disregard it; if he is not, it will be an excuse for his retreat and no blame can be attached to him.[170]
Nelson, directing action aboard HMS Elephant, was informed of the signal by the signal lieutenant, Frederick Langford, but angrily responded: ‘I told you to look out on the Danish commodore and let me know when he surrendered. Keep your eyes fixed on him.’[171] He then turned to his flag captain, Thomas Foley and said ‘You know, Foley, I have only one eye. I have a right to be blind sometimes.’ He raised the telescope to his blind eye, and said ‘I really do not see the signal.’[171][172] The battle lasted three hours, leaving both Danish and British fleets heavily damaged. At length Nelson despatched a letter to the Danish commander, Crown Prince Frederick calling for a truce, which the Prince accepted.[173] Parker approved of Nelson’s actions in retrospect, and Nelson was given the honour of going into Copenhagen the next day to open formal negotiations.[174][175] At a banquet that evening he told Prince Frederick that the battle had been the most severe he had ever been in.[176] The outcome of the battle and several weeks of ensuing negotiations was a 14 week armistice, and on Parker’s recall in May, Nelson became commander-in-chief in the Baltic Sea.[177] As a reward for the victory, he was created Viscount Nelson of the Nile and of Burnham Thorpe in the County of Norfolk, on 19 May 1801.[178] In addition, on 4 August 1801, he was created Baron Nelson, of the Nile and of Hilborough in the County of Norfolk, this time with a special remainder to his father and sisters.[179][180] Nelson subsequently sailed to the Russian naval base at Reval in May, and there learned that the pact of armed neutrality was to be disbanded. Satisfied with the outcome of the expedition, he returned to England, arriving on 1 July.[181]
