H.H Sheikh Nahyan Bin Mubarak Al Nahyan addresses the 3rd Abu Dhabi Corporate Governane Conference

March 26, 2012 - PRLog -- Under the auspices of H.H. Sheikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education & Scientific Research, the Third Abu Dhabi Corporate Governance Conference " Corporate Governance in the UAE…Regulatory and Practical Perspectives" was successfully organized last week  by the Abu Dhabi Center for Corporate Governance (ADCCG), which aims to effectively promote and positively contribute to the development of the national economy by introducing highest standards and practices of corporate governance.

H.H. Sheikh Nahyan Bin Mubarak Al Nahyan addressed a large delegation of officials who attended the 3rd Abu Dhabi Corporate Governance Conference last week. He reiterated that the UAE enjoys the confidence of financial markets, and is proceeding with determination towards building a society where the role of individuals and private sector will effectively deal with developmental issues.

During his keynote address, H.H. Sheikh Nahyan bin Mubarak Al Nahyan said that, the principles of efficiency, honesty, integrity, accountability and gaining confidence are the basis to a successful economic system. He also noted that these principles are necessary to gain the confidence of investors, employees, consumers, regulators and the general public.

According to him, companies should not wait until government imposes new measures, but should be proactive in their initiatives and responsibility. The development of these systems and procedures will play an effective role in shaping the economic environment.

The Minister also said that the rationalization of corporate governance in the country and the region contributes to the success of developmental efforts and leads to increased productivity, while building and stabilizing the financial markets.

He added that successful corporate governance contributes to supporting the national infrastructure for savings and investment and achieving efficiency in company performance. It also leads to protection of the rights of investors, and strengthens control systems and anti-corruption which plays a part in guiding the private sector to be successful and to avoid financial and economic crises.

The careful introduction of the principles of good corporate governance within the legal framework in Abu Dhabi and the UAE will determine the relations between the Board of Directors, executives and shareholders. Corporate governance sets the guidelines to achieve company objectives, develops their ability to make the right decisions and ensures follow-up of performance and achievements more accurately in a transparent manner.

He emphasized that he is in agreement with the vision that H.H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE has for Abu Dhabi and the UAE to build a sustainable economy with access to economic and social development along with a good balance and prosperity for all.

He said that under the wise leadership of H.H. the Head of State along with the efforts of H.H. General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, Abu Dhabi has become a global centre for trade and investment. It is a fertile ground for creativity, innovation with high levels of performance. In particular, Abu Dhabi has become a successful model for development and progress and is committed to providing a good life to the residents with a global approach to development in all spheres of life.

Also present at the conference, H. E Younis Haji Khoori, Undersecretary of the Ministry of Finance, said that ministries, agencies and all federal institutions have begun to form audit committees that are necessary for the application of governance systems. He emphasized that the goal of governance is to enable organizations to monitor their performance and improve the efficiency and quality of services they provide and protect the public funds it has.

H.E. Khoori mentioned that the Ministry of Finance has conducted a comprehensive survey and consulted institutions and regulatory bodies in the state. He added that his ministry has organized a series of workshops and it is evident that federal agencies and institutions are positively inclined to applying the principles of corporate governance.

He stressed that the decision by the Council of Ministers is mandatory and it is important that information on data and enterprise budgets is shared. He pointed out that the application of corporate governance systems will make government procurement more transparent.

He explained that the promotion of transparency and systems of good governance in federal entities requires commitment to the basic pillars of governance in accordance with international best practices. These are based on the independence of the Boards of Directors and their effectiveness along with an audit committee with sufficient powers.

He focused on the importance of an independent external auditor, objective and meaningful management committees and the respect for principles of transparency, disclosure and effective systems of measurement, policies and procedures that are clear and an effective system of delegation of powers.

H.E. Khoori explained that the decision of the Council of Ministers applies to all institutions, bodies and companies both profit and non-profit that are wholly owned subsidiaries of the federal Government.

The resolution emphasizes the existence of a legal and regulatory framework for state-owned enterprises, to act as the owner of the state with all shareholders treated equally. It also focuses on the responsibilities of the Boards of Directors’ in terms of their transparency.

The system stipulates that a Chairman or his deputy cannot serve as Director General and that members of the Board are prohibited from being members on more than four boards. Nor can board members serve as President of a Council in more than three institutions at the same time.

Khoori said that the ministry is in the next stages of planning and developing the general budget and final accounting reports in accordance with international best practices that follows transparency of public management of finances.  
On his part, H.E. Khalfan Al Kaabi, Chairman of Abu Dhabi Centre for Corporate Governance highlighted the advanced stages of corporate governance within the local private sector. He pointed out that the government relies on this important sector to implement its projects.

Kaabi said that the most important committees that emerge from the Boards of Directors with regards to corporate governance applications are that of the Audit Committee, the Audit Committee for Incentives and Rewards and the Committee of Governance and Risk.

The efforts of the Abu Dhabi Center for Corporate Governance also highlights the importance placed on companies to follow clear rules of conduct and to be models of social responsibility and continue to be of service to the community to achieve its goals and aspirations.

The application of corporate governance systems increases and attracts investments in the state and supports a competitive private sector while enhancing the appetite for further investments.

He explained that the Abu Dhabi Center for Corporate Governance which was founded in 2008 provides technical and advisory support for both the public and private sectors. It aims to assist in the development of institutional performance and build local capacity to activate universal principles of governance.

The application of the principles of corporate governance helps companies have ease of access to finance at lower costs and improves operational performance. It also reduces risk and increases the attractiveness of the Emirate.

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