PROFESSIONALS are fortunate in that their own professional                                                                                            
bodies contribute in one way or another to ensure that they are                                                                                       
adequately trained in their particular skills, either through                                                                                         
years of on-the-job training before they qualify for a licence                                                                                        
to practise, or through continuing professional development                                                                                           
programmes.                                                                                                                                           
                                                                                                                                                      
Directors, like professionals, are unique because they are put                                                                                        
into positions that expect them to know the laws underpinning                                                                                         
business operations.                                                                                                                                  
                                                                                                                                                      
In fact, there is no formal academic or training requirement                                                                                          
for anyone to be a director of a company under existing laws                                                                                          
and regulations - until recently, especially for listed company                                                                                       
directors.                                                                                                                                            
                                                                                                                                                      
The Kuala Lumpur Stock Exchange has introduced mandatory                                                                                              
training for people who want to become directors of listed                                                                                            
corporations with annual programmes called the Mandatory                                                                                              
Accreditation Programme (MAP) and the Continuing Education                                                                                            
Programme (CEP).                                                                                                                                      
                                                                                                                                                      
The Practice Note issued by the KLSE on training for directors                                                                                        
explains that a director must attend the MAP, which consists of                                                                                       
nine modules.                                                                                                                                         
                                                                                                                                                      
After having satisfactorily completed the MAP with the Research                                                                                       
Institute of Investment Analysts Malaysia, an affiliate company                                                                                       
of the Exchange, or such other bodies approved by the Exchange,                                                                                       
the director will be issued with a certificate confirming his                                                                                         
completion of the MAP. The Exchange will issue further details                                                                                        
of the CEP.                                                                                                                                           
                                                                                                                                                      
For the private and non-listed companies, the Registrar of                                                                                            
Companies has initiated a scheme in collaboration with private                                                                                        
organisations or training institutions to conduct corporate                                                                                           
directors' training programmes over a period of one and a half                                                                                        
days and comprising six modules.                                                                                                                      
                                                                                                                                                      
The Malaysian Institute of Management is one of the first ROC-                                                                                        
approved training institutions to be given this responsibility.                                                                                       
It has incorporated the ROC's six modules as follows:                                                                                                 
                                                                                                                                                      
* DUTIES and responsibilities of company directors;                                                                                                   
                                                                                                                                                      
* LAW and practice of board and company meetings;                                                                                                     
                                                                                                                                                      
* MALAYSIAN code on corporate governance;                                                                                                             
                                                                                                                                                      
* COMMON offences by company directors;                                                                                                               
                                                                                                                                                      
* ECONOMIC crimes, corporate offences and corruption; and                                                                                             
                                                                                                                                                      
* BUSINESS strategies and accounting standards.                                                                                                       
                                                                                                                                                      
All training organisations must adopt the six modules                                                                                                 
recommended by the ROC and abide by a set of terms and                                                                                                
conditions it imposes to ensure a consistent standard of                                                                                              
quality training.  MIM has been, selected to provide the                                                                                              
Corporate Directors' Training Programme (CDTP), no doubt                                                                                              
because it is reputed to have excellent training                                                                                                      
infrastructure, qualified trainers and personnel, and a proven                                                                                        
track record as a national professional management organisation                                                                                       
and training provider committed to developing managerial                                                                                              
competence in Malaysia.                                                                                                                               
                                                                                                                                                      
According to the ROC's record, there are more than 560,000                                                                                            
registered companies and Malaysia has more than 880,000                                                                                               
individuals acting as company directors. In line with the                                                                                             
country's endeavour to achieve the objectives of a K-economy,                                                                                         
the ROC has plans to make it compulsory for company directors                                                                                         
of non-listed companies to similarly equip themselves with the                                                                                        
necessary knowledge and ability to govern companies.                                                                                                  
                                                                                                                                                      
Directors' training and education in managing companies is new                                                                                        
in our country, as it is also in other countries in East Asia.                                                                                        
The financial crisis of 1997-99 has highlighted some serious                                                                                          
defects relating to corporate governance issues. This has                                                                                             
prompted the authorities to implement the Malaysian Code on                                                                                           
Corporate Governance and training of directors for listed                                                                                             
companies.                                                                                                                                            
                                                                                                                                                      
The Listing Requirements of the KLSE demand that the boards of                                                                                        
directors take their corporate governance functions seriously,                                                                                        
establish systems of checks and balances within the                                                                                                   
corporation, and ensure high standards of independent judgment                                                                                        
and due care when carrying out their fiduciary duties.                                                                                                
                                                                                                                                                      
Whilst the KLSE training programme caters for the listed                                                                                              
companies, the CDTP initiated by the ROC is an attempt to                                                                                             
emulate the principles of training for non-listed company                                                                                             
directors.                                                                                                                                            
                                                                                                                                                      
Training is expected to provide the orientation towards good                                                                                          
governance.  Once oriented and properly equipped, it is hoped                                                                                         
that directors of listed corporations will run the business of                                                                                        
directing the corporation on a stronger and susiainable                                                                                               
footing.                                                                                                                                              
                                                                                                                                                      
The addition of the CDTP course to the MIM stable augurs well                                                                                         
for the profession of managing and directing as well as for the                                                                                       
Institute. With the current development in the capital and                                                                                            
corporate sectors of the economy, the transferring of knowledge                                                                                       
and experiences in a fast developing Keconomy in Malaysia is a                                                                                        
challenge.                                                                                                                                            
                                                                                                                                                      
Despite MIM's vast experience, rich resources in facilitating                                                                                         
training, and professional development courses and programmes,                                                                                        
and its well established network of training centres throughout                                                                                       
Malaysia, equally challenging is the task of reaching out to                                                                                          
the hundreds of thousands of directors who will surely benefit                                                                                        
from the CDTP besides fulfilling the ROC's requirement for                                                                                            
non-listed company directors to be trained in the future.                                                                                             
                                                                                                                                                      
Preparing and training directors to practice good governance is                                                                                       
the tide that can lift our economic vessels to higher levels of                                                                                       
public confidence. It is a challenge that our country has to                                                                                          
face in the wake of globalisation and liberalisation.