The workshop also gave a detailed explanation of the most important amendments to the recent governance decision issued by The Chairman of the Securities and Commodities Authority (SCA) Board of Directors’ Resolution No. (3/ R.M) of 2019 which made amendments to The Chairman of the Securities and Commodities Authority (SCA) Board of Directors’ Resolution No. (7 R.M) of 2016 Concerning the Standards of Institutional Discipline and Governance of Public Shareholding Companies.
During the workshop the concept and principles of corporate governance, the reasons behind its emergence and its growing importance amongst companies and investors, as well as the expansion of the concept of a free market economy worldwide were discussed. The discussions focused on the benefits of implementing the principles of corporate governance in listed companies and their positive impact on enhancing the efficiency of the economy, bolstering the stability of financial markets, achieving transparency, attracting internal and external investments, and creating a business environment that enables companies achieve better performance and returns and protect the shareholders’ investments.
Also discussed at the workshop were the Organization of Economic Cooperation and Development (OECD)’s six principles in corporate governance, which focus on ensuring the basis of an effective corporate governance framework, the rights of shareholders and key ownership functions, the equitable treatment of shareholders, the role of stakeholders in corporate governance, as well as disclosure and transparency.
H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX stressed the Exchange’s keenness to support and assist listed companies to adhere to the principles of corporate governance that are in line with the OECD principles of corporate governance.
“The workshop provides the ideal platform to meet with listed companies, share ideas and consolidate best practices to implement the highest standards of governance, which is in adherence with the market’s strategy aimed at reiterating its leading position in the region.
H.E. added: “ADX is continually seeking ways to develop all aspects of the Exchange to enhance the investors’ confidence and to ensure fairness, transparency and disclosure. The Exchange is keen to help spread awareness among listed companies on applying The Chairman of the Securities and Commodities Authority (SCA) Board of Directors’ Resolution No. (7 R.M) of 2016 Concerning the Standards of Institutional Discipline and Governance of Public Shareholding Companies , which sets out the key controls that corporate boards must adhere to in corporate governance in line with international best practices.”
The idea behind corporate governance is to provide companies with an integrated financial and non-financial control system designed to manage and control corporate governance. Corporate governance provides the first line of defence that prevents companies from going into crisis, while helping crisis companies recover and reduce damage.
ADX continually encourages and educates listed companies to adhere to the legal and institutional framework of corporate governance principles, in order to achieve fairness, competitiveness and transparency in the market and the business environment in the emirate as a whole. ADX plans to hold further awareness workshops for all listed companies in 2019.