A Guide to Dealing Effectively with Corporate Governance Dubai
Corporate Governance Law is a comprehensive set of legal rules and regulations that every public listed company has to follow. It is considered as one of the founding pillars of any organisation because it is the basic system that governs and guides the various operations, actions, and decisions of the organisation. Therefore, every organisation must strive to comply with Corporate governance regulations setforth by the government of United Arab Emirates.
Here are a few important things that can help you to streamline your organisation’s management, accountability, business effectiveness, and control:
Shareholders are very important for every public listed company. They invest in the company by purchasing the shares and contribute to the overall wealth of the company. From those who have a small number of shares to those who own the majority of shares, all shareholders must be treated equally and acknowledge well with the company’s performance and key decisions.
The interest of the Stakeholders
Taking care of the stakeholders is extremely important because these are the people who collectively form up the organisation. There are both internal and external stakeholders such as the company employees, managers, owners, customers, creditors, investors, suppliers, customers, shareholders, and the government. Therefore, it is imperative to keep their interest in consideration and keep them in complete trust by acknowledging them with the various developments and progress of the organisation.
Responsibilities of the Board
According to the law stated under the Corporate Governance Dubai, there are certain responsibilities of the board that are meant to be strictly followed and fully complied by all of the board members. Therefore, it is crucially important for them to understand the importance of their role and act accordingly. It will allow them to keep maximum clarity in their decisions as well as their role in the organisation.
Ethics matter a lot for public listed companies which is why most organisations take it seriously. Those who put themselves before the organisation’s and stakeholder’s interest, not only cause trouble for themselves but also to everyone else associated with them. Therefore, complete ethical compliance is of utmost importance for public listed companies in the UAE. By focusing on organisational ethics, you can easily ensure that the required code of conduct has been followed by every individual within the organisation.
Transparency in the Business
Apart from simply being transparent in public appearances and gatherings, there is a lot that you need to take care when it comes to ensuring full compliance with the Corporate Governance Law. According to the law, the organisation should remain fully transparent in terms of its financial records, fillings, quarterly and annual reports, distribution of interest, dividends, and many other monetary and non-monetary aspects. Falsifying such important records and facts is a serious violation of the Corporate Governance Law.
From small to large scale public companies, these are a few most important aspects that help the most in ensuring maximum compliance with Corporate Governance in Dubai. Keep following our blog to find out more information about how organisations should deal with their legal matters.