Corporate Governance for SMEs
SME Success Series – September 2013
Rami Raslan - GradICSA
Senior Corporate Secretary
Corporate Governance – What is it?
Law
04/09/2013
Code
2
So how do we apply good governance?
Conclusion … ?
Corporate Governance is a mindset
Want to …
Vs.
Have to …
Don’t break it …
What needs to be done
 Preparation should be done by management, in most cases by the owners
of the business.
 Company objectives need to be established
 Management structure and process to be identified.
 Processes for establishing pay and other benefits to employees to be
developed.
 Develop process to handle potential risks.
 Identifying key areas of compliance.
 Regularizing financial audits and disclosure of audit findings.
 Gain knowledge of corporate governance (its not an expense, its an
investment).
 Formalize business practices formalized (analyzed and documented).
 clear roles and responsibilities should be communicated to all staff.
 Set up an advisory board continuous assessment , ensure integrity of
financial data and holding management accountable.
Facts
 Carl Bates, CEO of Sirdar SA, an organisation that helps small businesses to
grow says "Sustaining a small business is about separating the roles of
shareholder, director and manager. Yet 99% of business owners say ‘I’m the
owner, therefore I’m the director.’ Investors would not accept that. Small
businesses will struggle unless they truly understand the roles of shareholder
and director. Unless you understand this, you will lose the game.“
 Bloemfontein Chamber of Commerce chairwoman Wilma Richter says “smaller
businesses are running much faster than the bigger guys”.
 H.E. Sami Dhaen Al Qamzi Director General, Department of Economic
Development - Dubai says “The small and medium enterprises (SMEs) sector of
Dubai comprises 95% of the businesses, 42% of the workforce and contributes
to 40% of value add to the Dubai Economy. Dubai’s reputation as a welldiversified economy also owes largely to the SME sector. One critical enabling
factor for SME development is corporate governance. Indeed, practicing good
governance will help SMEs establish robust business processes and prepare
them for future expansion. In short, corporate governance lays the foundation
for SMEs to be more accountable and transparent in their operations, thus
enabling them to be more bankable and investable”
Thank you!