Boursa Kuwait: A new set of procedures and guidelines to ensure corporate governance
Boursa Kuwait confirrmed its keenness to implement corporate governance according to international standards, both culturally and professionally, to be aligned with regulatory guidelines set forth by the Capital Markets Authority (CMA) and in line with the needs and requirements of all stakeholders.
Corporate governance are a set of laws, regulations and resolutions that aim to achieve quality and excellence in performance by selecting the appropriate and effective methods to achieve the company's plans and objectives governing its relationships which influence its behavior various parties.
Ahmed Al-Kiswani, Risk, Compliance and Corporate Governance Executive Director – Boursa Kuwait said to KUNA that Boursa Kuwait is interested in adopting a system of governance, formulating all policies, procedures and regulations related to governance and building culture awareness of that system at all professional levels.
He added that the corporate governance provisions are focused on the independence of oversight functions and to enhance the levels of accountability, responsibility and transparency. The system was established to implement policies and procedures, taking into account the professional expertise and track records of all Board of Directors’ committees.
He pointed out that one of the key objectives is to ensure the coordination between the Board of Directors and executive management through clearly defining the roles and responsibilities of the BOD members and the executive team, as well as the powers and authorities delegated to the executive management.
He pointed out that Boursa Kuwait has adopted a code of conduct that includes best practices and professional conduct to achieve the best interest of the company, shareholders and stakeholders. It also provides the opportunity for BOD members, executive management and employees to fully achieve the company's objectives.
Al-Kiswani said that the company has prepared a set of policies and procedures to ensure that the assets and resources of the company are not misused to achieve personal interests, reduce the misuse of internal information and avoid conflicts of interest.
As for trading equities on the exchange for instance, Boursa Kuwait has set some guidelines in accordance with CMA’s Law and its executive regulations to ensure the highest standards of integrity and transparency as well as to ensure the protection of all the company stakeholders’ rights.
Upon their election, Boursa Kuwait board members are required to disclose their ownership of the listed securities, as well as the ownership of their dependents. They are also required to provide an annual disclosure of any changes in their portfolios.
He added that BOD members are also prohibited from trading during blackout periods as per CMA regulations. Members of the Violations Committee are also prohibited from trading in any securities that is subject to the committee’s review.
As for the employees, Al-Kiswani pointed out that as stipulated by the provisions of the law, Boursa Kuwait’s employees and their minor children are not allowed to buy or sell listed securities without CMA’s prior approval.
“During the recruitment process, the candidate must disclose to the Compliance Officer any equities ownership including the listed company’s name and number of shares owned by the employee and his/her minor children, as well as any change in ownership." Al-Kiswani stated.
He pointed out that Boursa Kuwait has adopted a comprehensive system to define strategic and operational objectives and measuring quantitative and qualitative performance with a focus on performance incentives and linking them to the levels of rewards for employees of the company and the executive.
Al-Kiswani said that the Board of Directors, in coordination with executive management, is in charge of monitoring the performance levels through periodic reports and the Key Performance Indicators to identify the necessary improvements and developments in line with the company's strategy and leading global practices.
Boursa Kuwait Company is working to develop the skill levels of BOD members and executive management by developing training mechanisms. The Board is keen to adopt induction programs for new members to ensure that they have adequate understanding and awareness of the company's business and operations. The board has also approved an informational booklet to BOD members.
He explained that Boursa Kuwait is also working on identifying some proposed training topics for BOD members, the executive management team and all employees in order to develop their skills and expertise and keep abreast of all new developments
Al-Kiswani said that the company has developed systems and mechanisms to periodically evaluate the performance of each member of the board and executive management through a set of key performance indicators related to the achievement of the company's strategic objectives and internal control systems.
He pointed out that Boursa Kuwait Company is keen to follow the highest accuracy and transparency standards in disseminating information related to listed companies due to its significant impact in enhancing investor confidence, attract capital and improve market liquidity.
He said that since Boursa Kuwait Company had taken charge of the Boursa Kuwait building, y and in coordination with CMA, it replaced the manual disclosure system with an electronic system that provides traders with the opportunity to obtain accurate and transparent information from its source, and ensure fair trading without any delays.
He pointed out that one of the most important pillars that the Exchange seeks to establish is to establish the highest levels of integrity and transparency.
مصدر الخبر: Alqabas