A Memorandum of Understanding (MoU) has been signed between UCC and the Institute of Directors-Ghana, (IoD) at a ceremony on campus, to promote good Corporate Governance through research and best practices.                                                                                                 

The MoU was signed at the inauguration of the Central Regional Branch of the Institute and induction of the Interim Executives.                                                             

The Acting Director of Research Innovation and Consultancy (DRIC), Prof. Frederick Ato Armah, signed on behalf of the University whiles the President of IoD, Mr. Rockson Dogbegah, appended for his outfit.

Board Members Needs the Right Training

In his address, Mr. Dogbegah said IoD was advocating that people who serve on public and private boards in Ghana should possess the right training, experience, and competencies to function effectively and efficiently. He announced that the new Company Bill, when passed into law, would mandate companies and organisations to train their boards on Corporate Governance. “I am happy to report that there is a provision in the new bill that if you are coming to renew your registration, you need to provide evidence of having trained your board members in Corporate Governance,” he announced.

The President of IoD further noted that the Institute was advocating parity in the board room adding that “We want to see equal representation of males and females on boards.  According to him, Directors were supposed to be supervisors and provide leadership stressing that “Leaders must be interested in the affairs of this country and use the opportunities they have to bring a change”. He continued, “Change cannot come when we sit and fold our arms. Change can come when we sow a seed and that seed is not only in talking but doing”.

Mr. Dogbegah said it was for that reason why IoD was bringing the change to Central Region through the inauguration of a branch to promote good Corporate Governance. “Good Corporate Governance leads to ethical culture, effective leadership, good performance, effective controls, and legitimacy,” he explained.

Good Corporate Governance

Giving a presentation, a fellow of IoD, Prof. John Bright K. Aheto, said Good Corporate Governance evolved around three elements thus, governance, risk, and compliance. He explained that “Governance addresses strategic planning, business alignment, policy creation, and vision setting.

Prof. Aheto noted that businesses should be mindful of risk by addressing system threats and vulnerability; protection of assets and risks to management objectives. On the issue of compliance, he stated that organisations must adhere to laws, regulations, policies, standards, best practices, and frameworks.

In his view, Good Corporate Governance should have qualities such as compliance with the rule of law, equity, and inclusiveness; participatory, accountability, responsiveness, transparency and efficiency and effectiveness. He indicated that governance required stakeholder analysis, procedural justice, Corporate Social Responsibility, and ultimate transaction and implementation costs.

Narrowing down to the fundamental objective of a Board, he said: “A board is under the duty to ensure that the objects of the entity it administers are efficiently accomplished”. He further argued that “If a Board’s role is to be fulfilled successfully and its responsibilities properly discharged, then full and effective contributions to its affairs will be required from each of its members who must possess five competencies, thus general, strategic, character, analytical and critical thinking and, communication and interpersonal skills.

Induction of Interim Executives

As part of the function, interim executives for the Central Regional Branch of the Institute were inducted into office. They are Prof. George K. T. Oduro-former Pro Vice-Chancellor; Prof. John Gachie Gatsi-Head of Department of Finance, School of Business (SoB); Dr. Abraham Ansong-Head of Department of Management (SoB), and Mrs. Alberta Yaa Graham-College Registrar, College of Education Studies. Others are Dr. Alex Adom –Lecturer, Department of Management (SoB); Mrs. Priscilla Baaba Bansah-Faculty Officer, School for Development Studies and Mr. Moses Kwao-Manager National Investment Bank, Cape Coast.

The Chairman of the Interim Executives, Prof. Oduro said one of the challenges hindering Ghana’s development was Corporate Governance. “In Ghana our greatest disease is leadership, we find it difficult to draw lines between governance and political issues. For instance, the Regional Minister is supposed to promote Good Corporate Governance in the region and all issues relating to party politics must be handled by the Regional Party Chairman” he noted.

Prof. Oduro posited that universities and business entities could only function effectively if good governance was practiced. He called for education and a change of mindset and drawing lines between political interest and that of corporate interest.