21 government-owned companies assessed for compliance with governance requirements
Overall corporate governance compliance among companies rises to 78 per cent
Island Aviation Services Limited has achieved the highest level of compliance with corporate governance standards among government-owned companies assessed last year, according to the Privatization and Corporatization Board (PCB).
The PCB has published its Corporate Governance Compliance Review for the previous year, evaluating how well state-owned companies comply with the standards and requirements established by the Board, as well as the Corporate Governance Code.
The latest review assessed 21 government-owned companies and found an improvement in their overall compliance with corporate governance requirements. The average compliance rate increased from 68 per cent in the previous review conducted in 2023 to 78 per cent in the latest assessment.
According to the report, 11 of the 21 companies achieved compliance scores exceeding 75 per cent.
The review also highlighted several areas where companies need to improve their corporate governance practices. Of the 21 companies assessed, only 12 had prepared their annual reports for 2024. Meanwhile, 16 companies had appointed a Chief Financial Officer (CFO) or an equivalent officer responsible for financial matters in accordance with PCB requirements.
Regarding audits, nine companies had a total of 19 outstanding audits that needed to be completed. The report also noted that two companies had yet to hold an annual general meeting since their establishment. Only four companies had held their annual general meetings for the previous year before the 31 May deadline. In addition, seven companies had not prepared annual plans.
The review found progress in the disclosure of information on company websites. Compliance with requirements to publish information for public access stood at 45 per cent across the 21 companies, compared with 29 per cent in the previous assessment.
Excluding requirements relating to the composition of boards of directors, 11 companies scored above 75 per cent in the compliance assessment. Island Aviation Services Limited secured the highest score, achieving 98 per cent. Maldives Ports Limited (MPL) followed with 97 per cent, while Aasandha Company Limited recorded 93 per cent.
The report also examined the composition and qualifications of company boards. It found that directors from only seven companies had prepared financial statements. Meanwhile, directors from 10 companies had completed the director training programme conducted by the Capital Market Development Authority (CMDA).
A total of 124 directors serve on the boards of the 21 companies assessed. Women account for 23 per cent of the total number of directors, while three companies have no female representation on their boards.
