The Central Bank has prepared an exposure draft on corporate governance for registered finance companies based on the directions issued to licensed banks that will come into effect from January 2009.

According to a press release issued by the Central Bank the draft took into consideration the views expressed by the Finance Houses Association of Sri Lanka and registered finance companies on a previous draft.

The exposure draft, which is based on the direction issued to licensed banks on corporate governance, is organised under ten subheadings dealing with the responsibilities of the board of directors, meetings of the board, composition of the board, criteria to assess the fitness and propriety of directors, management functions delegated by the board, the chairman and the chief executive officer, board appointed committees, related party transactions, disclosures and transitional provisions.

The final date for receiving comments, views and suggestions is August 15, 2008. A revised draft will be made available after considering the comments, views and suggestions.