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PRIVATESECTORORGANISATIONOFJAMAICAPROPOSEDCODEON
DRAFT FOR DISCUSSION PURPOSES ONLY
PRIVATE SECTOR ORGANISATION OF JAMAICA
PROPOSED CODE ON CORPORATE GOVERNANCE
Preamble
The proposed Code, which is based on The Combined Code on Corporate Governance
issued by the Financial Reporting Council (FRC) of the United Kingdom (UK) on 23 July
2003, has been compiled by the Corporate Governance Committee of the Private Sector
Organisation of Jamaica. It is proposed that this Code should become effective for annual
reporting periods commencing on or after 1st January 2007. It is hoped that those
companies that are able to do so will adhere to the principles of the Code as early as
possible.
The Code sets out the core principles and Code of Best Practice that the Committee
proposes for adoption by all publicly listed companies in Jamaic a and all other
companies, in partic ular those engaged in the provision of financial services. The
Committee has tailored the provisions of the FRC code to suit the “Jamaican business
climate”, in particular the embryonic state of Corporate Governance. The Committee has
also taken into consideration the small number of listed companies and consequently the
small number of business people, who would qualify for appointment as non-executive
directors.
The form and content of the Code are not prescribed, the intention being that companies
should have a free hand to explain their Governance policies in the light of the principles,
including any special circumstances applying to them which have led to a particular
approach. The company has either to confirm that it complies with the Code’s provisions
or – where it does not – to provide an explanation. This comply or explain
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