THE Microfinance NGO Regulatory Council (MNRC) revised its governance performance report card template to include requirements such as including a company’s website as a source of information for several governance standards.
The council said the revisions are “pursuant to its function of instituting and operationalizing a system of accreditation for microfinance NGOs based on sound and measurable standards of financial performance, social performance, audit and governance.”
Under the revised template, microfinance NGOs will include a board member’s curriculum vitae, certification on the training of officers and directors, their brief background of relevant experience on the company’s website as sources of information for the criteria on creating a competent board.
Its manual on good governance, programs, disclosure procedures and board code of ethics should be included on the company’s website, as well as a complete list of board committee members and their charters.
The website should also have a process allowing stakeholders to reach out regarding concerns on illegal or unethical practices, which should be available on their website.
The council will now require that a microfinance NGO’s chair of governance committee “must be a non-executive trustee.” The revisions also explicitly ask if the company’s board is assisted by a corporate secretary “who is a separate individual from the compliance officer.”
A clause on periodically meeting with consultative structure was also added, however, the council said it is still being resolved with a sub-committee. A copy of the minutes of the meeting will be used as the basis for the criteria.
Minutes and resolutions of board meetings will be used as sources of information for provisions on acting in good faith with due diligence and the development of the microfinance NGO’s vision, mission, social and financial and governance goals.
The revised report card also asks microfinance NGOs if they comply with the labor code and anti-discriminatory act. Their company manual, human resources manual, circulars, policies, and office issuances will be used as a basis for the criteria.
The company’s manual with nomination and election policy and procedures, conflict of interest statement, and compensation reports will be used as sources of information for several clauses under “establishing clear roles and responsibilities of the board.”
Large companies are also asked if they have programs regarding retirement for its trustees and key officers.
The MNRC is calling on microfinance NGOs, their clients, industry stakeholders, and interested parties to comment on the proposed revisions as well as the estimated costs for compliance. It will be accepting comments until Sept. 10. — Keren Concepcion G. Valmonte
