STO Claims Top Spot in Governance Rankings, CMDA Reports

State Trading Organization Plc (STO) has claimed the top spot in the Maldives’ corporate governance rankings with a compliance score of 97.5 per cent, even as regulatory authorities flagged persistent market-wide deficits in audit disclosures and board training.

The findings were published in the Capital Market Development Authority’s (CMDA) Corporate Governance Review 2025, which revealed that overall compliance across listed entities reached a record 92.9 per cent for the financial year 2025, up from 88 per cent in 2024 and 86 per cent in 2023.

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Ooredoo Maldives Plc (OMPL) ranked second with 96.2 per cent, followed by Bank of Maldives Plc (BML) at 94.9 per cent. Amana Takaful (Maldives) Plc (ATM) achieved 93.7 per cent, Housing Development Finance Corporation Plc (HDFC) scored 91.2 per cent, and Maldives Islamic Bank Plc (MIB) recorded 91.1 per cent. Dhivehi Raajjeyge Gulhun Plc (Dhiraagu) scored 89.9 per cent, while Maldives Tourism Development Corporation Plc (MTDC) sat at the foot of the table with 88.6 per cent.

The review evaluated eight listed companies that published their annual reports by 30 June 2026. Maldives Transport and Contracting Company Plc (MTCC) and Centurion Plc (CPLC) were excluded after failing to publish their annual reports and audited financial statements by the statutory deadline.

Four of the six governance sections assessed remuneration matters, shareholder rights, disclosure, and the concerns framework achieved 100 per cent compliance across all reviewed companies. The market also achieved full compliance in board gender diversity, eliminating a weakness that had dominated earlier reviews.

However, all 45 non-compliance findings recorded across the market were concentrated in just two areas: Audit and Internal Control (86.8 per cent compliance) and Board Issues (91.1 per cent).

According to the regulator, six specific provisions accounted for two-thirds of all non-compliance findings:

• Annual Board Elections: Seven of the eight companies failed to demonstrate compliance with the requirement for one-third of board members to stand for election annually. STO was the sole compliant entity, appointing all directors on one-year terms.
• Auditor Independence: Seven companies failed to explicitly disclose that their external auditors held no more than five per cent of company shares. Furthermore, five companies ATM, BML, MIB, MTDC, and OMPL lacked disclosed policies requiring external audit partners to rotate every five years.

• Director Refresher Training: ATM, BML, Dhiraagu, HDFC, and MIB failed to conduct or report annual refresher training for the full board covering legal, accounting, and tax updates, a deficit the CMDA noted has persisted across four consecutive review cycles without material improvement.

• Audit Committee Qualifications: The audit committees of HDFC, MTDC, and STO fell short of the requirement to maintain at least two members with formal accounting or financial expertise.

The CMDA also highlighted a widespread reporting gap across the market. Of 588 assessments deemed compliant, 73 relied on information disclosed implicitly elsewhere in annual reports rather than explicit statements confirming compliance with specific provisions.

The regulator identified closing the gap between compliance and “demonstrated compliance” as a key priority for the 2026 reporting cycle, while reminding listed entities that voluntary sustainability disclosures will become mandatory under the CMDA Maldives Sustainability Reporting Framework (MSRF) starting next year.