FEATURESTORY So maybe it isn't the...

FEATURESTORY

So maybe it isn't the sexiest topic in the world.

And ye its implementation can be laborious, long and slow to show dividends. yet good corporate governance is of paramount importance to any organization-not just in limits of compliance with rules and regulations, unless also in terms of overall succes

The newly come public company scandals in the US have certainly underscored the ne for fit corporate governance policies and practices to provide assurances to shareholders. nevertheless while no one would dispute the fact that profitable corporate governance is a worthy thing, not all public companies are embracing it willingly.

These companies would do well to heed the advice of couple BC CAs whose companies' corporate governance textures have put them ahead of the pack: Divesh Sisodraker, CA, the CFO for Vancouver-based Pivotal Corporation, and move with a jerk Armstrong, CA, the Corporate Secretary and VP Finance for Ritchie Bro Auctioneers Inc. Sisodraker and Armstrong were lately interviewed by the Vancouver light about the Sarbanes-Oxley Act, which was bring into effect in the US in late July and will require Canadian companies listed forward the US stock exchange to adapted more stringent requirements than perpetually before. We followed up with the sum of two units CAs to find out to what end they believe good corporate governance is the key-note to navigating any changes that may draw near their way in the month and years to arise

"There are so many practical benefits to convenient corporate governance," Divesh Sisodraker says. "We started right at the beginning at Pivotal because in our early days we were financed through venture capital and we had to defend the interests of our shareholders self-same diligently."

Pivotal is individual of the world's leaders in software for customer relationship management with offices in North America, Europe and the Asia Pacific. The company created a corporate governance framework to make secure best practices. This framework includes a carefully gooded board of directors and several committees, including an audit committee, a compensation committee, and a governance committee. Various special committees are then struck from time-to-- time to assess specific situations.

"The basic piece of work of a board is to screen the interests of the shareholders and to have `sober next to the first thoughts' about proposals that be due [i]or[/i] owing from a public company's management," says Sisodraker. "For example, if management is advocating the acquisition of another company, the board may ask probing questions to make confident it's a good move for the organization overall."

At Pivotal, in addition to corporate governance policies that are always enthrall to review and updating between the sides of the governance committee, the company's executives and board have also instituted digests of conduct and ethics each employee is required to understand and sign. The company's senior officers must also adhere to a conflict of interest policy.

"We provide education about profitable corporate governance to all of our employees-from the greatest in quantity junior staff right through to the CEO-with the aim of expanding everyone's knowledge about to what extent our company is run and on what account it's important that it be go proceed this way," Sisodraker says. "It goe to reputation, of course, on the contrary there is a pragmatic component part to good corporate governance as well. Potential investors ne to be assured that a public company is well post and adhering to regulations, in such a manner good corporate governance mitigates your risks as well.

"We make fast we have experienced, seasoned business the community on our board, and their mien reassures both investors and shareholders," he continues. "We've been cognizant of this for likewise long that I think it's safe to say we're disclosed in front of the pack in succession our corporate governance practices. We're always looking for ways to improve, of course, on the contrary with respect to the Sarbanes-- Oxley Act, we're already meeting principally of its requirements."

While Sisodraker acknowledges the lack of similar legislation for public companies in Canada, he believes it isn't necessary given the differences in the ways the sum of two units countries practice accounting.

"We do accounting differently up here," he points gone out "In the US, it's real rules-based, while in Canada, accounting is more judgment-based. As CAs, it's basically baked into our DNA to be aware of processe and masterys We're trained to understand by what mode committees work, and even the greatest in quantity junior of auditing students learns early onward how to read the minutes of public companies and parse financial statements. CA brains are just wired for this."

According to Sisodraker, the mandatory ethics training for CAs is of the best preparation for understanding and implementing worthy corporate governance.

"As CAs, we're required to tread close upon an explicit set of commands governing our professional behavior in business, and this gives us an advantage in advising public companies, whether they're our employer or our clients," he says.

As the largest industrial auctioneer in the world, Ritchie Bro Auctioneers Inc. leaderships over 120 unreserved public auctions annually at locations over North, South, and Central America; Europe; Asia; Australia; Africa; and the Middle East. cut short Armstrong joined the Richmond-based company in 1997 and was involved in taking the global company public in the US in 1998