The Practice of Corporate Governance in Microfinance Institutions: Consensus Statement of CMEF
By Council of Microfinance Equity Funds – Published: 2012
- In 2005, the Council of Microfinance Equity Funds (CMEF) published “The Practice of Corporate Governance in Shareholder-Owned Microfinance Institutions.” These “Governance Guidelines” were originally developed for two reasons:
1) Lack of guidance tailored specifically for microfinance institutions (MFIs). While many of the principles of governance are the same for all types of institution, MFIs have special characteristics that bear directly on governance.
2) To get beyond generalizations to the practical issues that boards actually face. While governance is an arduous process requiring diplomacy, insight, and even at times courage, it is easy for statements about governance to offer bland bromides.
- Legal structures and formal documentation
- Social performance management
- Alignment of incentives
- Responsible exits
- Risk and crisis management