Corporate governance in Uganda: the need for a code of corporate governance

Abstract

The study thought to test the hypothesis as to whether there is need for a cod of corporate governance in Uganda or not by seeking answers to the following research questions, what is the state of corporate governance in Uganda? Is there a need of code of corporate governance of Uganda? and which practical solution and proposals can be formulated to solve the corporate governance issues in Uganda? The study employed qualitative method through making use of the library or desk research by looking up for data from libraries and internet. Thus, the methodology adopted in this research paper was documentary analysis/research that involved systematic analysis of information in form of documents. Several journal articles, textbooks, reports and magazines that have been published on corporate governance were reviewed. Search engine like google scholar, and websites were used to access those resources and supplemented by data from ethnographic observation on the performance of corporate governance in Uganda in relation to rules, procedures and acts. Through content analysis partners, themes were developed to draw conclusion and recommendation on the need for a code of corporate governance for Uganda. In Uganda, there is no specific code that governs corporate governance among the different organization. However, several laws and guidelines have been developed over time. These include table F under Companies Act 2012, the Financial Institutions Act, 2004, The Financial Institutions (Corporate Governance Guidelines) Regulations, 2005, The Microfinance Deposit Taking Institutions Act, 2003, The Capital Markets Authority Corporate Governance Guidelines, 2003, and The ICGU Corporate Governance Guidelines among others. The study revealed that Uganda adopted two approaches to cooperate governance principles, that is, “Comply or Else” which is a mandatory and the “Apply of Explain” Which is the valuable approach. The study therefore recommended that Uganda should adopt one approach for the better results, being the mandatory code