A seminar organized by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) yesterday issued 7 recommendations and solutions to overcome the challenges facing public and private shareholding companies in the capital markets, according to the circumstances of each company and the nature of its activities.
Reda Mosallam, Partner and General Manager of Truth Economic and Administrative Consultancy, said that the legislator singled out the listed joint stock companies with strict frameworks of the legal articles governing them and surrounded them with strict control systems to ensure and ensure that these companies are managed in accordance with the provisions of legislation and governing laws, where these companies are subject to legislative and regulatory bodies These include the Ministry of Economy, the Securities and Commodities Authority, the Department of Economic Development of Abu Dhabi & Dubai, the Abu Dhabi Markets & Dubai and the UAE Central Bank.
He pointed out that there are seven main recommendations, the first of which is to abide by the institutional discipline of the board of directors of the public shareholding companies and its executive management. Also, He pointed out that the Securities and Commodities Authority issued binding decisions during the past years to ensure that corporate departments do not deviate from corporate discipline and abide by the rules of professional conduct.
He drew that the second recommendation focuses on the need to activate the role of standing committees emanating from the Board of Directors, where the law obliged companies to form at least two committees of the Board of Directors, namely, the Audit Committee and the Nomination and Remuneration Committee, He pointed out the need for the Commission to develop a mechanism to follow up the work of those committees by requesting a detailed copy of its periodic meetings supported by supporting documents.
The Partner Manager of Truth Economic and Management Consultancy said that the third recommendation refers to the necessity of obliging public shareholding companies to find professional competencies in their management through the adoption of a draft resolution requiring the members of the General Assembly of the shareholding companies to be among the following expertise: Legal, economic, financial and technical consultant.
The fourth recommendation is to strictly select the executive management of public shareholding companies under the supervision of the Authority, Where the Department has a legal agency relationship with the Board of Directors of the company authorizes the management of the company according to the purposes set out in the statute and adhere to the objectives set out in the strategic work plan and follow-up annual performance and measure the comparative achievement of what is intended to be implemented for the year, provided that under the supervision and care of the Authority .
Mosallam called in the fifth recommendation to the need to increase the technical cadres to increase the effectiveness of periodic and sudden inspection by the Authority to follow up the work of public shareholding companies and identify closely about those problems and solutions developed by the administration to solve those problems, and then give an opinion on whether they will lead to the elimination of those And then ask the executive management to offer other solutions to solve those problems other than the previous one.
He pointed out that the sixth recommendation is to form a technical team of the Authority to be allocated to each company or some companies (depending on the size of each) and give him the necessary time to be exposed to the situations and problems facing them, which is supervised and monitored, and the team to make periodic visits to subsidiaries At least every four months, increase or decrease depending on the discipline of those companies and the compliance of their employees with the rules of professional conduct, The team also reports to the Board of Directors for information and holds it responsible for the good or whether the company’s executive management of its business.
Mosallam pointed out that the seventh and final recommendation is to activate the role of the representative of the Authority when attending the general assembly of the joint stock company.