SEC Issues Corporate Governance Guidelines – Implementation Starts Jan. 2021


    The Securities and Exchange Commission (SEC) has issued a Corporate Governance Guidelines and a template for reporting compliance with the securities and SEC Corporate Governance Guideline, (SCGG) to become effective from January 2021.

    A statement by the commission in Abuja on Tuesday said that companies in the guideline would recognise corruption as a major threat to business and to national development.

    The commission said that companies’ directors must commit to transparent dealings, adding that the guidelines would be of help to businesses to ensure sustainability.

    ”The guidelines also stipulate that in appointing a person to the board, shareholders should be provided with information on any real or potential conflict of interest, including whether a proposed appointee is an interlocking director.

    ”The letters of appointment should cover the following: synopsis of director’s rights; director evaluation programme used by the company, and any other contractual responsibilities.

    ”In order to foster good corporate governance, companies shall engage in increased disclosure beyond the statutory requirements in the Companies and Allied Matters Act Arrangement (CAMA).’’

    According to the management of SEC, the guidelines state that the annual risk-based internal audit plan shall address the broad range of risks facing the company linking this to a risk management framework.

    The commission said that it would also identify audit priority areas; areas of greatest threat to the company and indicate the resources and skills available or required to achieve the plan.

    NAN recalls that the Nigerian Code of Corporate Governance (NCCG) of 2018 issued by the Financial Reporting Council (FRC) of Nigeria effectively replaced the Code of Corporate Governance for public companies issued by SEC.

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