Kolade Urges Independent Directors to Uphold Ethical Standards

By Ugo Aliogo

A former Nigeria High Commissioner to the United Kingdom, Dr. Christopher Kolade, has advised the Independent Directors to uphold ethical standards in professional practice, stating that all directors are subject to regulatory requirements.

Kolade disclosed gave the advice at the formal inauguration of Independent Directors Registers event organised by the Institute of Directors of Nigeria (IoD) in Lagos.

He called on directors to avoid any relationship which could lead them to compromise their standards or influence the ethics of the profession, adding that there is need for them to have a demonstrable track record of success in business.

Kolade also stated that from a corporate view point, independent directors must have intellectual, financial and political autonomy, with a deserved reputation for open articulation of his own views when needed.

He noted: “Directors must be loyal to the corporation. They must act honestly and exercise the care, diligence and skill in their dealings on its behalf that a reasonable and prudent person would exercise in comparable circumstance. Directors should never put their personal interest ahead of the interest of the corporation.

“Anyone who accepts to be an independent director should know that is not an easy position. Therefore, to be an independent director your approaches must be positive.  You must stay away from negative factors that discourage you to be less independent. The job of an independent director is to ensure that the team performs well and people are keeping faith with the agreement. You must protect the interest of all stakeholders.”

In his remarks, the Guest Speaker, Mr. Aigboje Aig-Imoukuede, noted that the IoD has been at the forefront of promoting good corporate governance and global best practices through various corporate channels and activities.

Represented by the Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema, Aig-Imokuede stated that the board of directors of any given company plays a pivotal role in promoting good corporate governance through their control of choice of strategy, risk assessment and assurance that the necessary talent to implement agreed strategy.

He added: “Good corporate can also drive a country’s ultimate fortunes from an economic standpoint. Empirical evidences confirms that high levels of transparency have been found to be associated with lower country risk premiums and costs of capital, as well as higher trading volumes or liquidity. Companies with low corporate governance standards have been shown to experience higher capital costs and greater risk premiums on their bonds and other capital raising offerings. Appropriately, governance deficiencies have been shown to be associated with increased probability that takeovers may not be successful, with a greater probability of a decline in a company’s intrinsic value. Increased probability that takes over may not be successful, with a greater probability of a decline in a company’s intrinsic value.”

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