Morocco’s Corporate Governance Regulations Need Improvement
Despite recent efforts to enhance corporate governance in Morocco, several shortcomings remain, according to experts. To address these issues, measures such as limiting the number of terms of office and staggering them over time could be considered.
Evolution of Governance in Morocco
A review of the evolution of governance in Morocco reveals that concerns often emerge in response to changes in capital or organizational structure. When capital is distributed among multiple shareholders, conflicts can arise, highlighting the importance of effective governance mechanisms.
Key Elements of Effective Corporate Governance
The legal framework, codes of good governance, regulations, and recommendations all emphasize the need for:
- An independent and effective board of directors
- Specialized committees
- Separation of the CEO and chairman roles
- Introduction of independent directors
However, despite these guidelines, some companies in Morocco have been criticized for lacking transparency and accountability. To address this issue, regulators are urging measures to prevent boards of directors from becoming entrenched and to ensure that company decisions are made in the best interest of all stakeholders.
Expert Insights
“In Morocco, we have seen some improvements in corporate governance, particularly for listed companies,” said [Name], a leading expert on corporate governance. “However, there is still much work to be done to ensure that all companies are held to the same high standards of transparency and accountability.”
Recommendations for Improvement
The Moroccan government has been urged to:
- Take a more proactive role in promoting good governance practices among local companies
- Provide greater support for small and medium-sized enterprises (SMEs) in their efforts to adopt best practices
Conclusion
While Morocco’s corporate governance reforms have made significant progress, there is still much work to be done to ensure that the country’s regulatory framework is strong enough to protect investors and promote sustainable economic growth.