Fresh guidelines for finance cos’ from Central Bank
2008-10-22 15:18:59

The Central Bank on Wednesday, in the backdrop of several depositors in finance companies being jittery after the Sakvithi (finance company) scandal, issued new directions to these companies on corporate governance.

The new rules under Section 2 of the Finance Companies Act No. 78 of 1988 apply to the responsibilities of directors, managing risks prudently and adequate information to all stakeholders among other matters. This direction is effective from January 1, 2009, the Central Bank said.