The adoption of high-standard corporate governance is necessary to enable companies operate more efficiently, improve access to capital, mitigate risk and safeguard stakeholders, CEO of Leverage Microfinance Company Limited (LMC), Gilbert K.N. Adamtey, has suggested.
According to him, effective structures put in place enabled his company survive the banking sector clean-up, and has seen its steady growth for the past 9 years.
“Experience has proven that corporate governance cannot be executed by an individual only but by people who are experts in diverse fields pertaining to the management of well established businesses. That is why it is important to involve and blend people from the business sector, legal, accountants, among others as your independent corporate governance board to help your business succeed,” he said.
Explaining further, he added: “This is a group made up of very independent-minded banking and finance advisors who will tell you in plain language when you are taking a wrong step or path, unlike other instances where what the CEO says is final. This is what has contributed to the progress of our company as we don’t do anything without the board’s consent; we always involve them in our business.”
He maintained that it was critical for managers to understand the operations of a business before they commit finance to it, and he argued that not all loans are suitable to be managed by every financial institution.
The microfinance sector, he said, is one that is supporting a lot of businesses and livelihoods—so people should be circumspect when setting up microfinance businesses by focusing on the core business of such firms.
“Before setting up such a financial service, there is the need to put in place checks, controls, and a competent independent corporate governance structure. It has been proven over time that we need to have localised businesses. That requires most of us in the microfinance sector to help them progress and get to the top. The regulator has done its part with the financial sector clean-up. I would therefore like to assure customers that there is still hope in those of us left in the microfinance business.”
For him, given his banking sector background, he was aware of the challenges so his outfit put in place an independent board from the onset, which has helped to shape the affairs and direction of his company.
Leverage Microfinance, he said, remains committed to give out loans to the public and other corporate bodies to meet their economic and other business or personal needs.