CORPORATE GOVERNANCE IN SAMOA: AN ANALYSIS OF REGULATORY STANDARDS AND PRACTICES

INTRODUCTION

Samoa has attracted the attention of international investors in recent years due to its unique regulatory standards, traditional governance practices and concurrent framework establishments. Corporate governance has recently become a topic of much garnered attention although the notion exists forever. The marks of am biculturalism and good corporate governance lie similarly in the assertive markers of Samoan good governance. The practices of reforms, systems, and strategies such as the indulgence of international financial institutions. With limited resources for Samoa which is a Small Island Developing State (“SID”) has assimilated itself as the combination of regulatory framework draws on international norms and standards adapted to needs of international norms and standards adapted to realities of Samoa’s business environment.

THE REGULATORY FRAMEWORK FOR CORPORATE GOVERNANCE IN SAMOA

The foundation of corporate governance in Samoa is based on the Companies Act 2001 which has facilitated the groundwork for all the adherence rules and regulations of corporate administration including framework guidelines, and director’s duties.

The Central Bank of Samoa (“CBS”) plays a crucial regulatory role in overseeing the financial institutions and active promotion of financial stability. The CBS requires that financial institutions maintain governance structures, to ensure the managed way to protect depositors and minimize systematic risks. The guidelines also extend to crisis management and financial reporting.

INTERNATIONAL INDUCTIONS

To ensure that the foreign investments are attracted to fuel the economic stability of the state, Samoa has adopted governance standards that are at par with the international standards. The Organization for Economic Cooperation and Development (“OECD”) Principles of Corporate Governance and the International Finance Cooperation (“IFC”) Corporate Governance methodology are the foundation of these regulatory policies and serve well to integrate the Governance Methodology. The standing for a foundational governance is to involve in meeting business challenges that the authority fully nurtures.

MODERN GOVERNANCE TRENDS

Governance practices in Samoa is the reflection of a blend of regulatory requirements while preserving the traditional values. It can be observed that to reflect the demanding and insurance of transparency, Samoan corporations often deal with operations in close-knit networks of familial and cultural ties which turn to be both the strength and ordinance of it.

For example, in Samoan companies the boards are relatively smaller than the large corporations of big economies. This creates a common social group of business enthusiasts that help regulate the unanimous calls for maximum market productivity and corporate fulfillment.

FINANCIAL REPORTING

The compliance varies through industries in Samoa. For the larger corporations that have a significant number of foreign investors, the compliance is rigidly observed with financial disclosure requirements. Even the small companies are met with standards consistently. The resource may be lacking but they amount to that with the increased awareness by the Central Bank of Samoa and government agencies.

RISK MANAGEMENT AND COMPLIANCE

The emerging area of focus here is within the financial sector but more on the intricacies of mitigating operational and financial risks. The CBS has strict guidelines on the resource constraints and the emphasis on the need for sound compliance programs to avoid lapses due to the insatiability of working mechanisms.

WORLD VIEW

Corporate governance for Samoa is a relative juncture for the coalition efforts of the most effective utilization of the limited resources available. But Samoa combats this with the practice of enforcement and ability in the future legal pioneering and adaptability to the culture.  Samoa has made significant compensatory moves such as the recruitment of effective governance framework, increased transparency, risk management and fast remedial measures. This promised growth invites various investors to the coral lands.