Corporate governance key to grow real estate sector

Story: Mary Mensah
 An expert in the property market has stressed the need for real estate developers to operate their businesses based on corporate governance structures in order to sustain growth in the property sector.
He said it was necessary for developers to do away with the erroneous perception of running their business alone, without mechanisms in place for checks and balances.
Mr K. Dapaah-Siakwan, Managing Director, Vanguard Properties Development Company Limited made this known to the Graphic in an interview in Accra today
He said corporate governance was crucial for the sustenance of any corporate entity today and key to get investor confident in developers as well.
“Just like democracy in any country, corporate governance is the system of getting board of directors, sub-committees, management and all the structures that matter in the corporate entity in place to safeguard the business, especially in the absence of the owner”, he added.
  Mr Dapaah-Siakwan identified lack of corporate governance principles as contributing to the collapse of some major companies in the country and the world over.
 He therefore entreated all business entities to adopt corporate  governance in order to further propel the growth of their businesses and the economy as well.
 On his part, Mr Enoch-Entsua Mensah, General Manager in charge of operations for Vanguard Properties indicated that corporate governance was key to investors and a crucial indicator to even list on the Stock Exchange.
 He indicated that the absence of such corporate governance principles accounted for the inability of the construction industry to propel itself as a key sector of the economy despite huge resources into the sector.
 He said the service sector in Ghana was doing well because of corporate governance , stressing “ no investor would want to partner a sole proprietor whose resources is difficult to account for”.