Corporate Governance Chapter 5 Chapter 5 with trade unions in the country and that this is the reason why there are no strikes. The CRM was told that the Public Gathering Act is the reason why there are no strikes. The CRM was also told that trade unions are sidelined and not consulted when effective decisions are being made. Most stakeholders told the CRM that the challenge really lies with the private sector, where the laws are employer-friendly. The laws have contributed to the erosion of employee rights in Mauritius, especially in the private sector. 276 784. Suppliers and creditors. The CSAR does not touch on creditors’ rights. The Companies Act of 2001 also does not deal with insolvencies. However, the CRM was told that a new insolvency act was being introduced. The Securities Act of 2005 also touches on the issue vaguely. However, discussions between the CRM and stakeholders indicated that they believe that the Public Procurement Guidelines, the Contract Law, the Companies Act and the Corporate Governance Framework all provide reasonably well for the equitable and fair treatment of suppliers and creditors and are consistent with prudent commercial practice. Generally, stakeholders claim that Mauritius respects creditor rights. For example, ICAC has published a guideline, Procurement of Goods and Services: Best Practice Guide for Public Bodies, as well as Contract Works: Best Practice Guide for Public Bodies, but these are geared mostly to guarding against corruption. 785. Stakeholders suggested, in their meetings with the CRM, that the government should pass legislation to deal with insolvencies. This will ensure that all suppliers and creditors are subject to the same terms and conditions regarding supply, delivery and payments terms. This will go a long way to resolving disputes with creditors. They also suggested that, even in cases where corporations are winding up payments to the same class of creditors, payments should be made equitably. Stakeholders also hoped that the new insolvency act they told the CRM about would address these issues. They also told the CRM that there are no centralised credit bureaus in Mauritius for individual consumers. However, they informed the CRM about the Mauritius Credit Information Bureau (MCIB) that the BoM owns. The Bank of Mauritius Act of 2004 governs its operations. The CRM noted that the MCIB dealt mostly with medium to large businesses. 786. Government. The participants at the various discussions and meetings with the CRM did not regard the government as an important stakeholder. The government of Mauritius is a shareholder, directly or indirectly, in several parastatals or strategic corporations Corporate Governance in the country. There are over 100 of these. Most of these parastatals do not fall under the Companies Act of 2001. Consequently, they can circumvent the stringent reporting rules of the act as well as some international standards and norms. The government guarantees the public debt, which includes domestic debt, of these parastatals with money from the national budget. Stakeholders informed the CRM that political appointees staff these parastatals and, therefore, they question their competence. Governance of these parastatals should be more important. 787. Competitors. Fair competition between businesses in any country is the basis for creativity and innovation that leads to sustainable growth and the development of enterprises. However, it must be pointed out that healthy competition operates within the framework of sound business ethics, compliance with applicable legislation and application of the same laws to all enterprises in the same category or sector within a country. The CSAR refers to the Mauritius Competition Act of 2007. It aims at eliminating restrictive business practices in order to improve competition in the country. Unfortunately, there are protective nexus or collusion cartels which are determined to protect domestic traditional businesses from competing with other local businesses. The Competition Act also provides for an independent Competition Commission. The CRM learnt that the Competition Commission has started operations. 788. Intellectual property rights. Mauritius’s strategy is to diversify its economy and to move to a knowledge-based economy. It has established a cybercity and GBL companies contribute about 4 per cent to its GDP. However, it is surprising that there has been very little progress with establishing the necessary structures and up-todate laws to protect intellectual property rights. The Copyright Act of 1997, for example, is the only act in the country that provides for this. It protects the work of Mauritian citizens, the citizens of countries that are parties to the Berne Convention and works published in Mauritius within 30 days after publication in another country. The problem is that the act is dated and does not cover new developments in the knowledge and digital era. The CRM learnt that the government is drafting an amendment to the Copyright Act of 1997 with the assistance of the World Intellectual Property Organization (WIPO). Currently, a division in MoFARIIT deals with issues around intellectual property rights. 277