WorldStage– Dangote Sugar Refinery, a leading sugar producer in Nigeria has released its code of governance compliance report which revealed that 63 percent of its nomination and governance committee attended less than half of its meetings last year.
Section 11.2 (4) of the Nigerian Code of Corporate Governance (NCCG 2018) requires this committee to meet “at least twice a year or such number of times as may be appropriate to discharge its duties”.
The committee met five times, according to Worldstage News analysis of the report the company disclosed on the Nigerian Exchange Group March 23. And five of the eight-member committee attended two out of the five meetings while two members attended thrice, and the committee chairman, four times. Two of the members retired from the board last June, though.
In the same period, three quarters of the members, however, showed up all the six times the board met.
Dangote Sugar Refinery pays the board members only allowances, including those of sitting and travels, for the number of times they attend the board or committee meeting.
The governance code also states that majority of the members should be independent non-executive directors (INEDs) where possible, but non-executive directors (NEDs) formed over more than half of the committee.
The governance committee is among the four committees whose performances can boost shareholders and investors’ confidence in the integrity of a company’s board’.
A governance committee has the responsibilities to recommend aboard composition, directors’ appointments, nomination, board’s human resources, leadership succession and sustainability.
