AN EXPLORATORY STUDY ON CORPORATE GOVERNANCE PRACTICES OF THE SELECTED OIL AND GAS COMPANIES IN TANZANIA

Abstract

The main objective of this study was to explore the governance practices of ten oil and gas companies operating in Tanzania. Using content analysis of annual reports of the studied companies, the study sought to particularly examine board structure and composition as well as functioning of the board and audit committees. The findings revealed that given the size and scale of operations, the number of board members in the studied oil and gas companies ranged from six to eleven and most of these board members were foreigners. In terms of gender, most companies had both male and female members in the board of directors, with an exception of two companies which had all male members on their boards. Also, the number of executive and non-executive directors varied from one company to another, the majority being non-executive directors. Findings further revealed that all CEOs were executive members of the board; however, they were not chairpersons. In addition, board meetings were being conducted and the practice of board evaluation was noted for some companies. The audit committees of the studied companies were found to be effective in assisting the board to discharge its financial oversight roles. Our findings support both the Agency Theory and Resource Dependency Theory.