1. With technical & financial assistance from: Caribbean Association of Indigenous Banks Inc www.caibinc.org

2. Audit Committees: Fostering Investor Confidence Chris Pierce Global Governance Services Ltd.

3. CEO of Global Governance Services Ltd. Formerly Director of Professional Standards at the IoD in London Author of “The Effective Director” (2001) Director of the World Bank Global Governance Leadership Program Author of “The Handbook for International Corporate Governance” (2004) Author of “Developing Corporate Governance Codes” (2005)

4. Responsibilities of directors The role of the audit committee The role of investors

5. Exercising accountability and responsibility Foresight Delegation to Management Strategy and Structure

6. “The Directors of a company must not approve accounts…unless they are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit and loss of the company.” Company Law Reform Bill 2006

7. “The primary purpose of the financial statements of an entity is to provide its owners – the shareholders – with information on the state of affairs of the entity and its performance and to assist them in assessing the stewardship exercised by the directors over the business that has been entrusted to them.” Auditing Practices Board Ethical Standard 1

8. Audit Committee Best Practice Composition Defining the role Meetings Resources Remuneration Skills and training Relationship with the Board Financial reporting Internal Control and risk management systems Whistleblowing Internal audit External audit Communicating with shareholders

9. The role of the investor Accountability Fairness Transparency Responsibility

10. McKinsey’s Global Investor Opinion Survey (2002) 30% in East Europe and Africa 22% in Asia and Latin America 14% in North America and Western Europe

11. Deutsche Bank Research (2002 – 6) Price premiums are paid by investors in emerging markets for shares in companies with good corporate governance.

12. Black, Jang and Kim Research in Korea (2003) Well governed companies in Korea trade at a premium of 160% compared to poorly governed firms.

13. A large company that is well governed will have an audit committee

14. Research indicates that companies that are well governed: Have greater access to capital Have a higher growth rate Have higher profitability Have a lower cost of capital Have a higher share valuation

15. Chris Pierce Global Governance Services Ltd Tel: +44 1689 878399 Email: chrispierce@ggs.uk.comchrispierce@ggs.uk.com Website: www.ggs.uk.com