SHANGHAI--()--Today, CIFALShanghai announced the opening of the China Center for Corporate Governance, a cooperative effort among CIFALShanghai and Intrabond Capital U.S., Inc., with the support of the Shanghai Credit Services Trade Association. The center will provide governance standards and improvement with services including education, training, professional certification of directors, establishment of a national registry of qualified directors as well as conduct independent annual board evaluations and set objective corporate governance ratings.
“Investors are intimidated by potential loss and risk due to the lack of information transparency and lack of conformance to global governance standards. The US SEC’s recent series of investigations targeted on Chinese companies aggravate this lack of confidence.”
The Center will provide customized board advisory services for a wide range of companies in China, including those publicly-listed, state-owned, pre-IPO as well as institutional investment firms.
Mr. Wang Genxiang, CIFAL Director notes: “The tremendous growth of interest in international business for companies in China calls for a sharp focus on good governance standards. If China companies wish to expand in new markets successfully, it is vital for them to establish their credibility for good governance so they can attract quality investors and grasp today’s international growth opportunities. Now is the perfect time to step up and show China governance is committed to a global standard on quality governance. This means a forward-looking approach to training, professional certification, reliable access to qualified directors and best practices in board evaluation. Our center is dedicated to governance improvement to build international confidence of China-based companies.”
Mr. Rao Minghua, Secretary General of Shanghai Credit Services Trade Association explains: “Establishing a total look at governance is a logical extension of our current work in setting standards and improvements in the credit industry. We have seen major improvements in the overall credibility of the credit service industry by implementing the training, certification, evaluation and rating system. It makes good business sense to expand this for all companies in all industries in China. We extend our full support to this important initiative.“
Today, investors outside of China recognize the tremendous growth and potential of China companies. Yet, the 2011 Wall Street China Forum notes “Investors are intimidated by potential loss and risk due to the lack of information transparency and lack of conformance to global governance standards. The US SEC’s recent series of investigations targeted on Chinese companies aggravate this lack of confidence.” The Forum aligns with many investor groups which advocate that China-listed companies provide investors with better information for careful evaluation and understanding of the essence of the businesses, their risks and potential.
Dr. Donna Hamlin, CEO of Intrabond Capital U.S., Inc. comments: “We are pleased to assist China-based companies with how to improve their governance and enhance their opportunities for long-term growth and success. With careful changes in governance practices, we are confident investors will build deeper understanding and confidence in how to invest in China. Our global consulting, professional certification, evaluation tools and metric-based rating system will help corporate officers and directors increase their abilities to contribute and make significant strides in corporate success. We count on directors to make a professional commitment to development in this area so there is a sustainable win-win for all.”
The Center will launch its first program beginning in July with Board Bona Fide, a confidential registry designed to qualify directors for board candidacy and service world-wide. The registry establishes an individual’s experience, qualifications and board assignment history and preferences, as well as analyzes their personal board style and fit for future board roles. Underlying the registry is an algorithm used to match individual registrants to possible board assignments, based on their fit and readiness for specific boards.
Members can use the registry report prepared for them to improve their board readiness capabilities and to learn about the ideal fit for future board roles. By reviewing results with a Center counselor, a director can determine what training is best to round out his or her qualifications for board service. The Center will offer a full, four level certification program available for all directors.
The Center will next provide its professional certification training program, a four-level program by which professionals receive increasing levels of recognized certificates for governance education. The certificate will be stamped by the Center as well as UNITA, the United Nations organization providing global professional certifications on vital topics in business.
“This is a powerful step to make significant strides in corporate governance,” notes Dr. Rodria Laline, Chairperson for Intrabond Capital, U.S., Inc. “We are proud to be a part of the future global business success of China.”
CIFALShanghai provides professional development training, education and conferences to advance talent development and strategic growth opportunities for companies. It is approved by the China Ministry of Foreign Affairs and is set up jointly by the United National Institute for Training and Research (UNITAR) and the Shanghai Municipal government as the Shanghai International Technology Center, as an Asia-Pacific region-oriented international training institute.
About Intrabond U.S., Inc.
Intrabond Capital Corporation provides global services, research and thought leadership on best practices in board governance. Its proprietary tools and assessment services evaluate overall board effectiveness, assess individual and group dynamics and determine the impact of governance on corporate performance over time. Its rating system accelerates governance and corporate performance and improves investor understanding of potential for investments.
About Shanghai Credit Services Trade Association (SCSTA)
Established in 2005, SCSTA was organized by Shanghai credit rating enterprises and economic institutions and has 38 member companies and conducts industry investigation and planning, research, consulting, training and professional qualification certification, credit investigation and credit rating. It developed and maintains an investigation of Statistic Indicator System of Credit Industry and issues a public report on the Shanghai Honor Credibility System which is widely presented at both the Trade Association of Industry Honor Credibility Conference and the International Credit and Risk Management Conference.