Moore Stephens: Shipping to Disclose or Risk Being Exposed

Image Courtesy: WSC

The shipping industry must adopt a transparent, proactive approach to corporate governance or else risk exposure to business and reputational damage, according to the international accountant and shipping adviser Moore Stephens.

Corporate governance in shipping has been in sharp focus recently, particularly following publication of the research by Wells Fargo Securities into Shipping’s Corporate Governance War.

Businesses in today’s shipping industry are expected to fully comprehend the implications of inadequate management of conflict of interest arrangements, and to recognise the importance of independent directorship, Robert Noye-Allen, a partner in the Moore Stephens Governance Risk & Assurance team, said.

He added that, for example, the UK Corporate Governance Code stipulates that at least half the board of directors, excluding the chairman, should comprise non-executive, independent directors.

“Independent directorships and good practice can facilitate the disclosure of actual and perceived conflicts in reports issued to stakeholders, and ensure that calls for declarations of interest are a standard board meeting agenda item,” Noye-Allen said.

Furthermore, Noye-Allen said that a nominated individual should be responsible for regularly scrutinising the register, and an escalation process should be put in place for managing concerns. Also, as part of wider risk management, a periodic independent review should be undertaken of the register of interests.

“These steps are an excellent way to inspire stakeholder and investor confidence in board transparency. Any shipping businesses which do not follow them should reflect that it is far better to disclose than to be exposed to potential reputational and share value damage,” he added.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >