As part of its ongoing efforts to introduce the latest developments
in corporate governance and their implementation in listed companies, Abu Dhabi Securities
Exchange (ADX), the region’s leading financial market, recently held a workshop on Corporate
Governance and Board of Directors’ Role at its headquarters. Senior executives from relevant
departments responsible for the application of corporate governance in public shareholding
companies listed on the Exchange attended the workshop.
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
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.