Chronological Development of the Corporate Governance Guidelines in Bangladesh: A Comparative Analysis between CGG-2012 and CGC-2018

Abstract

In this study, the chronological development of the Corporate Governance Guidelines (CGG) and Corporate Governance Code (CGC) is examined to identify how much the Code has evolved over time. A comparative analysis between the CGG-2012 and CGC-2018 has also been conducted in the study to outline the latest changes and areas of further improvements. The study is exploratory and literature review-based in nature. Hence, contemporary literatures were analyzed along with comparison of the CGG-2012 and CGC-2018 issued by the Bangladesh Securities and Exchange Commission (BSEC). Data was collected from various secondary sources including – corporate governance codes of different countries, research papers, journals, newspaper articles and websites. The study points out that the BSEC has followed a six-year interval pattern in the further development and modification of the corporate governance codes in Bangladesh. Also, it has been found out that in terms of the number of conditions in the code, the CGC-2018 is about 75 percent enhanced than CGG-2012. Previously, CGG-2012 was enhanced by more than 150 percent over the first guideline in 2006. CGC-2018 has introduced some crucial governance issues that were not present in the code before but there still remain some areas that are yet to be addressed in the best-practices recommendations. Keywords: Corporate Governance, Nomination and Remuneration Committee, Board of Directors’ Committee, Company Website. DOI: 10.7176/EJBM/12-27-13 Publication date: September 30 th 2020