Dr Dhanayshar Mahabir among ‘Independents’

Heavy lobbying was par for the course at the Trinidad and Tobago Stock Exchange (TTSE) board meeting recently, sources said.

The lobbying for positions saw Republic bank corporate secretary, Jacqueline Quamina, and WITCO director, Ranjit Jeewan coming on board while listed company representatives Godfrey Bain, Group Executive Director — Commercial Operations, Angostura, and Rollin Bertrand, CEO, Trinidad Cement Limited, retained their seats. The broker representatives are Subhas Ramkhelawan of Bourse Securities, Peter Clarke, managing director, West Indies Stockbrokers, Winston Padmore of Trinidad and Tobago Stocks and Shares and Kathleen Dhannyram, managing director, Reliance Stockbrokers. 
 
The TTSE Board is due to meet on June 12, to elect a new chairman and deputy chairman Ray Sumairsingh, managing director, ANSA Finance and Fe Lopez-Collymore, Corporate Secretary, Guardian Holding Limited, lost their seats on the TTSE board. But in an effort to bring transparancy to its operations, three independent directors have been elected to the Board. They are UWI economist Dr Dhanayshar Mahabir; consultant Andy McEachrane and actuary and head of the Institute of Chartered Accountants, Kyle Rudden. The election of the independent directors was facilitated by a change in the TTSE’s articles of association.

Bain, in an interview on April 17 in Business Day, said the independents will bring a degree of independence to the Board. Bain, who is also chairman of the Central Depository, said he welcomed having independent voices on the exchange. He noted that while he was aware that both brokers and listed company directors may bring their biases on the Board, he had not encountered this to “any great extent.” He said the independents will also bring a balance to the governing of the Board. Peter Clarke, managing director, West Indies Stock Brokers (WISE) had said the move was meant to broaden the composition of the Board and to change the ownership structure. The change, he said, was in keeping with the stock exchange’s stated objective to move from one being owned by brokers and company directors to that of a public company. The independent directors were chosen by majority vote by those holding class A and B shares, the former belonging to the brokers, the latter to listed companies. An independent director cannot belong to either group.

Kathleen Dhannyram, TTSE chairman, also told Business Day that the three independent directors will ensure that the stock exchange is comprised of people whose interest is purely that of the exchange’s development. “It is another step in raising the calibre of the exchange. It is a move to make the stock exchange totally independent.” Richard Young, managing director, Scotiabank and former TTSE Chairman, agreed saying: “It is all about bring transparency and good governance to the stock exchange.”

He said he was aware that 50 percent of the stock exchange was owned by six broking firms and the rest by listed companies who bought shares. This, he said, may have created the perception that a conflict of interest existed.