Published On: Mon, Mar 25th, 2013

Cft opposes collective dismissal

Committee for Financial SupervisionWILLEMSTAD — Just as advisor corporate governance SBTNO, the Council financial supervision (Cft) opposes a collective or massive dismissal of commissioners of government NV’s and directors of government institutions.

 Cft announced its opinion in a recent letter that this request conflicts with the principles of good corporate governance. In a letter dated February 5th, Premier Daniel Hodge (PS) requested all members of the boards and councils concerned to hand in their resignation. According to Hodge, it is common practice with a new government that these members are dismissed because the composition of the supervisory organs of government entities must reflect the newly installed government as much as possible.

In the past Cft also advised against this line of policy, warning for the administrative consequences of discontinuity of management and for the financial consequences of possible unjust dismissal. As these warnings were ignored, the Statute Law financial supervision assigned Cft to supervise the realization and implementation of corporate government regulations in which procedures and demands on the appointing and dismissing of administrators of corporations in which the countries participate, form a crucial part.”

Cft further wrote that: “The policy line mentioned in your letter doesn’t meet the principles ensuing from the Code Corporate Governance. The Code was actually established to prevent such policy. Based on the principles of good corporate governance and a good financial management, the interest of the corporation has priority. The continuity of the management is an important part of this. Your request for collective resignation conflicts with aforementioned principles.” Cft therefore advises the government to support ‘the corporate governance code’.

According to PAR-parliamentarian Zita Jesus-Leito, the government must take a decision as soon as possible. “This situation must end; I want to see concrete action.”

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