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NO doubt, good corporate governance ensures transparency and transparency in all organisations under both public and private sectors, and it is the pre-condition for healthy economic growth of a country. Our capital market is growing to some extent with the enlistment of some good companies, but still it faces manifold problems among which the absence of good corporate governance erodes investors' confidence in the shares of public limited companies. Even some of the blue chip companies manipulate to the detriment of shareholders' interest. As a result, in some cases investors have to incur heavy losses from the blue chip shares compared to what accrue from the low graded shares. There are, however, some blue chip companies who maintain transparency under a good corporate governance and uphold their shareholders' interest.
In fact, the capital market runs owing to the goodwill of some companies which consider seriously the rights of each and every quarter involved in them i.e. the government as the recipient of taxes, clients as legitimate claimant of efficient and sincere services, employees as a deserving group for reasonable and timely payment of remuneration and good service conditions and share-holders as the party deserving good profit.
Due to the absence of good corporate governance in some companies, which appear to be blue chip companies by distorting information, investors find themselves in difficult situation. Such companies, at times, announce unexpected achievement by them in a ploy to raise share prices abnormally but later declare dividend having no relevance with their earnings. They also exploit share-holders by issuing right shares with high rate of premium. Their evil activities make the share market most volatile.
In view of the above, I urge the authorities concerned to declare every year national award for those listed companies which maintain good corporate governance in order to encourage others to give up their mischievous activities.
A Salam
Dhaka.
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