The Senior Minister, Nana Yaw Osaafo-Maafo, is advocating for good corporate governance among corporate bodies in the country as a tool for national development.

He said private sector organisations must operate with transparency and accountability as their core principles.

The Minister made this statement during the first bi-monthly business meeting for the Institute of Directors (IoD), under the theme ‘Stimulating Public- Private Dialogue: The Role of Key Stakeholders in Leadership and Corporate Governance in the Socio-Economic Development of Ghana’, in Accra last week.

He said the IoD should serve as a nexus for good corporate governance for both public and private sectors, adding that those appointed to serve on boards must be independent at all times.

“Independence starts with self-confidence. Directors must be independent in action and thinking while bearing in mind that there are liabilities associated with the position, including criminal prosecution,” he said.

He mentioned that people who cannot commit time to serve on board must not accept the position, and also urged directors and senior management to avoid conflict of interest, which has become a major obstacle to sound corporate governance practice.

The Senior Minister again noted that government is currently working out modalities of implementing various economic policies leading to job creation; therefore, it is certain that the role of the institute would be critical in this regard.

He said the institute can play various roles such as composition of boards, building capacity of directors, preparing code of conduct for directors, developing a pool of competent directors and facilitating the preparation of a national code on corporate governance with application for both public and private sectors.

President of the IoD, Fred Ofosu Darko also stated that effective corporate governance attracts investors, noting that companies fail due to corporate failure, which in turn affects society because it creates unemployment.

He said the IoD is aimed at championing good corporate governance for the country’s economy to prosper, hence the need for the bi-monthly meetings to streamline effective corporate governance.