Doha - Qatar Financial Markets Authority (QFMA) yesterday announced that it has approved the Project Corporate Governance Guide for the listed companies in the DSM during the latest meeting of its Board.
Subsequently, QFMA will be submitting the Project Guide for local consultation in the next few days, and in particular, to the listed companies and other relevant government and private entities in the country, for their comments, if any.
Previously, QFMA has submitted the new Project Corporate Governance Guide for international consultation to a number of relevant and specialised international institutions including the Organisation for Economic Co-operation and Development (OECD), the Bank for International Settlement (BIS), the International Corporate Governance Network (ICGN) and the International Institute of Finance (IIF).
Commenting on this initiative, Nasser Ahmad Al Shaibi, the Deputy CEO and Acting CEO of QFMA, said: "This Guide was developed in collaboration with Hawkamah Institute, according to relevant international principles and standards including, those set by the OECD, BIS, ICGN and the IIF; and taking into account the specific attributes of the Qatari market, the Qatari corporate law and other relevant laws in the state.
"The QFMA Corporate Governance Guide should apply to all listed companies in Doha Securities Market, and generally, in any other exchange to be established in Qatar under the supervision of QFMA." The Project Guide sets out the principles and applications for good corporate governance, and in particular, with regard to the board of directors, considering that good governance is a key prerequisite for good performance of any company.
The Guide covers the six main areas of corporate governance in line with international principles and standards -- ensuring the basis for an effective framework of governance; the rights of shareholders and key ownership functions; equitable treatment of shareholders; and minority shareholders interests; the role of stakeholders in corporate governance; disclosure and transparency, and the accounting and auditing standards; and the responsibilities of the board of directors.
"Strengthening the standards of corporate governance is one of the main elements of the strategy of QFMA to strengthen the Institutional structure of the capital market, and providing for a sound and safe environment for investment in Qatar that guarantees imparity, integrity and transparency," Al Shaibi said.
Al Shaibi said: "The Guide, as proposed by QFMA, is designed to enable the Authority to implement a comprehensive regulatory framework for good Corporate Governance in the Qatari capital market. As such, the Guide addresses the basis and requirements for the appointment of the board of directors, its structure, as well as the duties and responsibilities of its members, chairman and secretary. Furthermore, the Project Guide provides specifically for the protection of the rights of shareholders, especially the minority shareholders, as well as propose to regulate the role of other stakeholders in corporate governance and in particular the committees formed by the board.
"More importantly, the Project Guide aims to enhance the Corporate Financial Disclosure and transparency by implementing the International Financial Reporting Standards (IFRS); it also addresses the issue of conflict of interest and related parties transactions. Generally, the Guide aims to strengthen the internal controls within the companies and its good governance, and proposes the terms by which companies will implement the rules and requirements it provides for.
"The existence of an effective corporate governance framework will improve tremendously investors' confidence in the Qatari market, and the credibility of our market place. We hope that this Guide will help achieving the national vision of Qatar to develop the investment sector in general, and the capital market in particular, by strengthening the market institutions, and establishing a strong and effective regulatory infrastructure that ensures the fairness and integrity of the Qatari Capital Markets." Al Shaibi added.
© The Peninsula 2008
