State Trading Organization Plc (STO) has secured the highest position in the Maldives’ corporate governance rankings for 2025, achieving an impressive compliance score of 97.5 per cent as listed companies recorded their strongest overall governance performance to date.
According to the Capital Market Development Authority’s Corporate Governance Review 2025, overall compliance among the listed entities assessed reached a record 92.9 per cent for the 2025 financial year. This represents continued progress from 88 per cent in 2024 and 86 per cent in 2023, reflecting the growing emphasis placed on stronger corporate governance, transparency and accountability within the Maldivian capital market.
STO emerged as the best-performing listed company with 97.5 per cent compliance, followed closely by Ooredoo Maldives Plc at 96.2 per cent. Bank of Maldives Plc achieved 94.9 per cent, while Amana Takaful (Maldives) Plc recorded 93.7 per cent. Housing Development Finance Corporation Plc scored 91.2 per cent, Maldives Islamic Bank Plc achieved 91.1 per cent, Dhivehi Raajjeyge Gulhun Plc recorded 89.9 per cent, and Maldives Tourism Development Corporation Plc achieved 88.6 per cent.
The review assessed eight listed companies that had published their annual reports by 30 June 2026. Maldives Transport and Contracting Company Plc and Centurion Plc were not included in the assessment after their annual reports and audited financial statements were not published within the statutory deadline.
The results also showed significant progress in several important areas of corporate governance. All companies reviewed achieved full compliance in remuneration matters, shareholder rights, disclosure requirements and the framework for raising concerns. The market also recorded 100 per cent compliance with board gender diversity requirements, addressing an area that had previously been identified as a weakness in earlier governance reviews.
While the overall results demonstrate strong improvement, the CMDA identified Audit and Internal Control, which recorded 86.8 per cent compliance, and Board Issues, which achieved 91.1 per cent, as the principal areas requiring further attention. All 45 instances of non-compliance identified during the review were concentrated within these two categories.
Among the key issues highlighted was the requirement for one-third of board members to stand for election annually. Seven of the eight assessed companies were unable to demonstrate compliance with this requirement, while STO was the only company to meet it by appointing all directors on one-year terms.
The regulator also identified areas for improvement in disclosures relating to external auditor independence. Seven companies did not explicitly state that their external auditors held no more than five per cent of the company’s shares. In addition, Amana Takaful, Bank of Maldives, Maldives Islamic Bank, Maldives Tourism Development Corporation and Ooredoo Maldives did not disclose policies requiring external audit partners to rotate every five years.
Board development was another area highlighted in the review. Amana Takaful, Bank of Maldives, Dhiraagu, HDFC and Maldives Islamic Bank did not conduct or report annual refresher training for their full boards covering legal, accounting and taxation developments. The CMDA noted that this issue has continued across four consecutive review cycles and remains an area where listed companies can further strengthen governance practices.
The review further found that the audit committees of HDFC, MTDC and STO did not meet the requirement to maintain at least two members with formal accounting or financial expertise.
The CMDA also drew attention to the importance of clear and direct governance reporting. Of the 588 assessments classified as compliant, 73 were based on information that could only be inferred from other sections of annual reports rather than from explicit statements confirming compliance with individual governance requirements. The authority has therefore identified strengthening “demonstrated compliance” as an important priority for the next reporting cycle.
The continued rise in overall compliance reflects the strengthening of the Maldives’ corporate governance environment and the efforts of regulators and listed companies to improve accountability, investor confidence and institutional standards. The CMDA has also reminded listed companies that voluntary sustainability disclosures are set to become mandatory under the Maldives Sustainability Reporting Framework from next year, adding a further dimension to corporate transparency and responsible business reporting.
STO’s leading performance, alongside the market-wide increase in compliance, highlights the progress being made in developing a stronger, more transparent and internationally credible capital market in the Maldives.
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