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Following is the speech delivered by the Chief Secretary for Administration, Mr Henry Tang, at the Seminar on Corporate Governance for Subvented Organisations at Jockey Club Auditorium, Hong Kong Polytechnic University, this morning (May 24):
Good morning ladies and gentlemen,
It is my great pleasure to welcome you to this, the first of four seminars on corporate governance for subvented organisations. I am delighted to see so many of you here so early on a Monday morning. I trust it will benefit each of you in carrying out the mission of your respective organisation.
These seminars aim to do three things. First is to emphasise the importance that the Government places on good corporate governance; second, to highlight some of the key issues involved; and third, to introduce a new Guide to Corporate Governance for Subvented Organisations. Through the seminars and the guide we would like to help you to build understanding of your roles and responsibilities and also to give practical help in putting principles of good corporate governance into actual practice in your organisation.
I would like to thank all the speakers for giving your valuable time to share your insights with all of us. I give special thanks to those who have helped us to draft this guide.
Above all, I also want to thank you, and the many thousands of others like you, who have given your time and effort to run and support Hong Kong¡¦s many subvented organisations. Subvented organisations are an essential feature of our life. They range from small district sports bodies run almost entirely by volunteers to sophisticated entities with thousands and thousands of staff such as the Hospital Authority, and a number of you actually employ more staff than government departments. The range of services provided is equally diverse and I¡¦m sure it touches every aspect of our lives.
But you all have a number of things in common. You provide essential community services, and you receive public funds to support some or all of the activities that you perform.
Last year about 40% of annual recurrent public expenditure was channelled through subvented organisations. It is therefore important that public trust is maintained. That requires accountability, transparency and, equally important, the ability to understand the value of the services to the public and to build and sustain that value over time. This is the essence of good corporate governance.
The Guide to Corporate Governance is intended to provide a handy reference for all subvented bodies. It states clearly and simply what the best practices are; it provides a clear framework to follow; and it explains the roles and responsibilities of board members and senior executives.
The guide does not mandate a single approach that must be complied with by every organisation, nor is it realistic to do so. Each agency needs to consider your own circumstances to decide what is appropriate, what is achievable, and what your priorities should be.
I emphasise strongly that the Government is not seeking to use this guide to micro-manage your organisation. The responsibility for the activities of each organisation rests squarely on the shoulders of the organisation, meaning the board and its management.
Attaining, and maintaining, high standards of corporate governance is a challenge. Everyone involved in direction of an organisation, whether in the private, public or subvented sector is engaged in learning how to fulfill this goal. Over the coming months, I hope that every subvented organisation will - with the help of the guide and the checklists provided - be able to review your own corporate governance arrangements and identify where improvements may be needed and which are the most important matters for you to address first. Government bureaux and departments should also consider their priorities, and share their thoughts with their counterparts in the subvented bodies.
Some of you may need help to implement the reforms that you identify. I understand that there are many corporate governance practitioners in the audience who stand ready to assist.
While much of the expertise in corporate governance in Hong Kong has focused on listed companies, and on small and medium enterprises, there is much common ground of use to the subvented sector as well.
The Government and subvented organisations are close partners in enhancing corporate governance. So we need your feedback to ensure that we provide enduring support to the process of building and sustaining good corporate governance. There is a questionnaire among the documents on your seat. Please do take time to consider and complete this questionnaire so that we can get a better understanding of your concerns and of any institutional arrangements and resources that may be needed.
Once again, I commend the guide to you. Let us know if it meets your needs, or where we can improve it. And I wish you all a stimulating, thought provoking and helpful seminar.
Thank you.
Ends/Monday, May 24, 2010
Issued at HKT 12:00
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