CODE OF CORPORATE GOVERNANCE
The Leadway Group has come a long way since the establishment in 1970 of its first born, Leadway Assurance Company Limited, to carry on the business of composite insurance. It has an effective Board of Directors comprising men of integrity with several decades of experience in the insurance industry. The Board is collectively responsible for the success of the company and works with management to achieve this with the management remaining accountable to the Board.
The Board’s roles include the following:
Provision of entrepreneurial leadership, setting of strategic aims, and ensuring that the necessary financial and human resources are in place for the company to meet its objectives;
Establishment of a framework of prudent and effective controls which enables risk to be assessed and managed;
Revision of management performance; and
Setting the Company’s values and standards, and ensuring that obligations to shareholders and others are understood and met.
The Board meets at least four times yearly and objectively take decisions in the interests of the Company.
Our Directors receive appropriate training when they are first appointed to the Board and this includes orientation programmes to ensure that incoming Directors are familiar with the company’s business and governance practices. Equally, serving Directors receive further relevant training, particularly on relevant new laws, regulations and changing commercial risks, from time to time.
The Board of Directors comprises individuals with strong and independent attributes who are able to exercise objective judgment on corporate affairs independently, in particular, from Management. The Chairman and Chief Executive officers are separate persons and this is to ensure an appropriate balance of power, increased accountability and greater capacity of the Board for independent decision making. The Chairman has the duty of leading the board to ensure its effectiveness on all aspects of its role and set its agenda. He also ensures that the Directors receive accurate, timely and clear information and also ensures effective communication with shareholders while promoting high standards of corporate governance.
In order to fulfill their responsibilities, Board members are provided with complete, adequate and timely information prior to board meetings and on an on-going basis.
Though the Management has an obligation to supply the Board with complete, adequate information in a timely manner, relying purely on what is volunteered by Management is unlikely to be enough in all circumstances and further enquiries may be required if the particular Director is to fulfill his or her duties properly. Hence, the Board has separate and independent access to the Company’s senior management.
Furthermore, the Board has separate and independent access to the Company Secretary. The Company Secretary ensures that that board procedures are followed and that applicable rules and regulations are complied with. The Company Secretary attends all Board meetings.
The Company engages in regular, effective and fair communication with its shareholders, regularly conveying pertinent information, gathering views or inputs and addressing shareholders’ concerns. The Company encourages shareholders’ participation at Annual General Meetings and allows them to communicate their views on various matters affecting the company.
The Company regularly publishes its statement of accounts in two national dailies to inform the public of its financial standing and notices are regularly sent to shareholders in compliance with the Companies and Allied Matters Act.
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