When the State Is the Shareholder:
Recent developments involving the boards of Namibian public enterprises and statutory bodies have brought an important governance question to the fore; and that is: where should the authority of the State as shareholder end, and the independence and responsibility of the board begin?
This is particularly relevant as Namibia considers amendments to the Public Enterprises Governance Act (PEGA). The issue is not whether Government should exercise its ownership rights, because it certainly must. Board independence should not become a shield against accountability either. Where boards fail to perform, breach their duties or cease to serve the interests of the enterprise, the shareholder has both a legitimate interest and, in appropriate circumstances, an obligation to intervene. But how should that authority be exercised, through what processes, and with what safeguards?
