Monthly Archives: January 2015
As the Gulf region assimilates into the global marketplace, corporate governance plays a dynamic role in improving the transparency, accountability, competitiveness and the notion of succession planning. Countries with a strong corporate governance culture attract greater domestic and foreign direct and portfolio investment.
Boardrooms in Africa are really no different to boardrooms anywhere else in the world. Directors in Africa, like everywhere else, need to be up-to-date with their understanding of the legal obligations of a Director, their personal duties and liabilities and what these mean in the context of the company whose board they sit on.
Compliance is a global initiative; it requires a collaborative approach between the public and private sectors to achieve mutual objectives of economic development and growth, financial transparency, customer protection and enhanced customer service. Therefore, a strong financial system is fundamental to financial stability and sustained growth; Middle East and North Africa (MENA) countries are no exception.
Emirates National Oil Company (ENOC), a wholly-owned company of the Government of Dubai, is the strength ‘behind every successful journey’, touching people’s lives across the oil, chemicals, gas, aviation, shipping, liquid storage, information technology, retail, travel and real estate industries. The company also has a growing international footprint with established operations across the Middle East, Africa, South and Far East Asia.
In the not well enough read Accounting Historians Journal in June 2001, Gary Spraakman, a Professor from York University in Toronto, perfectly defined internal audit and in doing so he - perhaps inadvertently - set the foundation stones of what constitutes good internal audit oversight.
In the aftermath of the 2008 global financial crisis post-mortems were convened in countries around the world to identify what went wrong. A unanimous conclusion was that boards of directors of public companies in general, and financial institutions in particular, need to do more to oversee ‘management’s risk appetite and tolerance’ if future crises are to be avoided.
The issue of diversity, especially gender diversity, on corporate boards of directors has generated significant discussion and debate for some time. Relatively recently, stock and securities exchanges have become involved in the discussion - joining legislatures, governmental agencies, interest groups and other actors in the private sector.
Corruption takes many forms and is now widely understood as a key impediment to growth, competitiveness and stability across both emerging and developed economies.
It goes without saying that hedge fund activism can no longer be viewed with dismissiveness - after growing levels of campaigns in the past 14 years, corporate boards, no matter how large and robust the organisation, would be foolish to regard them with anything less than seriousness
Engagement between issuers and shareowners is growing. Increased activity by activist investors, a rise in say-on-pay votes and majority voting for directors are some of the reasons behind the growth in engagement in recent years. Whatever the motivating factors, the results are what are most interesting.