Corporate governance is the set of processes, customs, policies and laws affecting the way a company is directed, administered or controlled.Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed.
Board of Directors is committed to ensure the accountability through proper mechanism that enhances the shareholder value whilst ensuring that proper internal control systems are in place to govern the day to day affairs of the company. The company endeavours to practice the principles of corporate governance to ensure transparency,integrity and accountability in its functions which are vital for achieving the business objectives of becoming a major, integrated energy Company with a strong environment conscience and playing a national role in oil security.
The Company adheres to the requirements of the Code of Best Practice on Corporate Governance issued jointly by The Institute of Chartered Accountants of Sri Lanka (ICASL) and The Securities and Exchange Commission of Sri Lanka (SEC).
Composition of the Board of Directors The Board comprises of one Executive and five Non-Executive Directors. The Managing Director is a full time Director and functions as the CEO of the Company. The other Directors are professionals and experienced leaders of high repute in their respective functional areas.
The Non-Executive Directors include two independent Directors, Prof. Lakshman R Watawala and Mr Amitha Gooneratne who are acclaimed for their knowledge and experience in their respective fields. Their active participation in the Board deliberations has brought in an independent and pragmatic view to the Board deliberations and in taking decisions.
The Managing Director manages the Company’s day-to-day affairs based on strategic direction, policy formation and procedures approved by the Board from time to time. Each function is headed by a Senior Vice President who assists the Managing Director in the day-to-day functioning of the Company. The team members are highly qualified with professional degrees, have long service experience and deal professionally in their respective functional areas.
The Company maintains excellent relationship with its investors. Managing Director meets the Institutional Shareholders when they wish to meet the management, on prior appointment. Through its registrars, the Company strives to address the grievance of its shareholders on priority.
The Board has reviewed in detail the contents of the Annual Financial Statements and has verified its adherence to principles of accounting; corporate laws and norms laid down for transparent disclosure and accepted accounting policies.
An International reputed firm of Chartered Accountants conducts the internal audit of the Company’s transactions regularly. The audit reports and actions taken are placed before the Audit Committee on periodic basis for a review and to ensure the adequacy and effectiveness of the internal controls.