CORPORATE GOVERNANCE

Corporate Governance Role, Importance and Goals

First

Proceeding  from  the  goals  of  the  Authority  to  regulate  the  activity  of  securities  in  a  fair,  competitive,  and  transparent  manner  and  to  enhance  the  public  awareness  concerning  the  activity  of  securities  and  benefits,  risks,  and  obligations  related  to  investment  in  Securities  and  encouraging  the  development  of  such  activity,  along  with  providing  traders  in  securities,  thus,  reducing  frequent  potential  risks  in  this  activity,  therefore,  the  application  of  a  full  disclosure  policy  achieves  fairness  and  transparency and prevents conflict of interest and exploitation of insider information. This  will  regulate  the  relationship  between  shareholders,  Board  of  Directors,  and  executive management in shareholding companies.

Second

The  corporate  governance  rules  are  the  principles,  systems,  and  procedures  that  achieve  the  best  protection  and  balance  between  interests  of  management  companies, and those of shareholders, and other stakeholders related thereto. The key goal of applying corporate governance is to ensure that companies are in line with the shareholders’ goals, in a manner that enhances the confidence of investors in efficiency of company performance and ability to face crises.

Third

Rules  of  corporate  governance  regulate  the  decision  making  process  inside  a  company  and  stimulate  transparency  and  credibility  of  such  process.  One  of  the  most significant goals of adopting the rules of corporate governance are to protect shareholders  and  separate  powers  of  the  executive  management  which  conduct  business  of  such  company,  and  the  Board  of  Directors  preparing  and  reviewing  plans and policies in such company, in a manner that provides trust and enhances confidence  in  dealing.  Such rules also enable shareholders and stakeholders to have an effective control on the company.

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Fourth

The rules of sound corporate governance shall document the following:

  1. Ethical conduct: It shall ensure compliance with ethics and good professional code of conduct in achieving interests of all related-parties with the company and transparency at presentation of financial and non-financial information.
  2. Control and accountability: the importance of developing an integrated condition for control and accountability is to reveal deviations and breaches, in addition to the importance of activating the role of Stakeholders to control the company and to assert that disclosure and transparency are key components in protecting rights of stakeholders.
  3. The sound administrative condition ensures distribution of powers and authorities, separation of powers, and developing a system of incentives and rewards through evaluating performance of managers or employees at the company.

The importance and benefits of corporate governance for companies, in particular, and the financial sector, in general, are

  1. Enhance administrative efficiency of companies
  2. Receive a funding at a lower cos
  3. Enhance procedures of supervision and audit
  4. Support social role of companies
  5. Enhance fairness, transparency, and fair treatment
  6. Minimize conflict of interest

Board of Director Committee

  • Internal audit committee

Chair of the committee   MR. Radley Run Ravin

Member   Mr. YASEER Mahoumed

Member   Dr. ABDUL RAHMAN AL-KANDARI

  • Risk Management Committee

Chair of the committee   Dr. ABDUL RAHMAN AL-KANDARI

Member    Eng. IHAB HAKIM Hakim

Member    MR. Radley Run Ravin

  • Nomination and remuneration committee

Chair of the committee   MR. Khalifa   AL NASSAR

Member    Eng. IHAB HAKIM Hakim

Member   Dr. ABDUL RAHMAN AL-KANDARI

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