Corporate governance guidelines released in Philippines

A new guide has been released by the Philippine Stock Exchange (PSE) with the aim of helping companies to meet corporate governance standards.

The guidelines will not be mandatory, although a PSE official noted that listed firms who do not stick to good governance practices will be required to publically disclose their reasons for not doing so.

Under the guidelines, companies are expected to develop a sound business strategy, protect the rights of shareholders - including those in non-controlling groups - and implement an internationally-accepted transparency regime.

"Good corporate governance is the battle cry across developed and emerging markets in Asia," commented PSE chairman Hans B Sicat.

He added: "I encourage companies to adopt the guidelines. The same guidelines will govern the operations of the PSE."

According to the Manila Bulletin, the PSE recently approved the listing of an additional 220 million common shares of Metropolitan Bank, in a move that will lead to a major stock rights offering on December 10th.