Corporate Governance Implementation And Training Service

KUWAIT CITY - July 1, 2015 - PRLog -- It is inevitable to success - implementing a best governance system by which business corporations are directed and controlled. PIK’s governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance.

The Capital Markets Authority (CMA) in Kuwait issued Resolution No. 25/2013 dated 27 June 2013 regarding the corporate governance rules applicable to companies in Kuwait . In these new rules, CMA takes into account the companies engaged in securities activity. The resolution identified 11 corporate governance rules for companies regulated by CMA. The corporate governance rules are as follows:

a)      Building a balanced structure for the board of directors

b)      Proper identification of the tasks and responsibilities

c)      Recruit highly qualified candidates for board of directors and executive management

d)     Integrity of financial reporting

e)      Introduce sound systems for risk management and internal control

f)       Strengthen ethical standards and moral values

g)      Ensure timely and accurate disclosure and transparency

h)      Respect the rights of shareholders

i)        Recognize the legitimate interests of the stakeholders

j)        Encourage enhanced performance

k)      Importance of corporate social responsibility (CSR)

The Capital Markets Authority (CMA) also issued a Circular dated 5 August, 2013, where CMA requires the Kuwaiti companies under its supervision to provide it with a quarterly report effective 30th September, 2013 reflecting these companies’ compliance with corporate governance rules issued by CMA. And  it is amended that the regulations will be strictly carried out and followed by the end of 2015.

PIK has a number of frame works, guidance and maturity models in-order to implement the best corporate governance system. Based on CMA regulations and our practical experience of working with leading organizations, PIK Have developed a proprietary Governance Frame work to guide successful implementation. Conclusively a company having good governance will always attract more investors even in the bear market