Concerns raised against company directors
April 4, 2019 4:19 pm
Attorney General Aiyaz Sayed-Khaiyum during the inaugural Pacific Governance Summit [Source: Fijian Government]
It has been revealed that some subsidiary companies are breaching the laws by foregoing their profit for the sake of their parent body.
Attorney General Aiyaz Sayed-Khaiyum says this is a growing problem in the country.
He highlighted this during the inaugural Pacific Governance Summit held in Suva today aimed at promoting corporate governance
“One company at its expense of perhaps not making better profits for themselves, they are getting a better position in the market they were doing that so they could help the other company. Now that is unacceptable infact that is a breach of the law so they were forgoing their own company gaining more profits because the larger sister company wanted them to do something else.”
He also raised against company directors sitting on numerous boards.
“There are some grey areas in respect of subsidiary companies, what are their responsibilities of board members who may actually be sitting on the parent company and but also a sitting board member on the subsidiary company so sometimes there are actually conflicting”
The Attorney General says these issues need to be critically looked at.
Meanwhile, more than 200 business executives were part of the summit.