ABUDHABI, 2nd March 2010 (WAM): The Emirates Securities and Commodities Authority (SCA) has signed a memorandum of understanding (MoU) with the Abu Dhabi Centre for Corporate Governance (ADCCG), an affiliate of the Abu Dhabi Chamber of Commerce and Industry (ADCCI), to boost the framework of cooperation between them with the aim of spreading awareness on the principles of corporate governance, its application and significance to the business sector.

H.E. Abdullah Al-Turifi, SCA Chief Executive Officer, signed the MoU for his side, while H.E. Khalfan Al-Ka'abi, ADCCG Board Chairman, also signed for his outfit in a ceremony which was attended by Khalid Deeb, ADCCG Director General, and other officials from both sides.

The agreement aimed at providing support for initiatives and programs that would be presented by any of the two parties in the area of disseminating corporate governance and its practices. Based on the agreement, the SCA will support ADCCG's initiatives in spreading corporate governance awareness among business community in the country through the holding of forums, seminars and other interactive meetings, as well as by organizing and preparing specialized training programs in corporate governance and related subjects. The two will also boost cooperation in the area of corporate governance researches and studies, best practices, implementation and supervisory mechanism and supporting the reform and development of the business sector of Abu Dhabi by consolidating the principles of transparency and disclosure according to the best international practices and standards.

The two sides also agreed that the SCA shall be in charge of endorsing and approving specialized development courses in corporate governance that will be adopted by the ADCCG.

In a statement after signing the agreement, Al-Turifi said his outfit will continue to strive in support of all initiatives which aim at activating good governance mechanisms and practices through corporate governance principles, which, according to him, add to the development of companies and their performance and boost their credibility.

He pointed out that the MoU seeks to highlight the significance of creating public awareness on the role of corporate governance with regards to companies and securities markets, in general. He said implementing the principles and practices of corporate governance in public joint stock companies contributes immensely in boosting investors' confidence in securities markets and listed companies, adding that in order to achieve this strategic objective, the SCA issued the "Criteria for Corporate Governance of Public Joint Stock Companies" to match with the principles of related international organizations and comparative legislations, while the SCA takes into full consideration the legal framework and the socio-economic situation in the country.

For his side, Al-Ka'abi, said: "The ADCCG is proud to have the support of the SCA to achieve its strategic objectives of developing the UAE business community to be committed to the highest international standards in the area of corporate governance and to improve upon the local corporate governance regulations to match with those being implemented worldwide".

He pointed out that by signing the agreement, the two sides want to give a big boost to corporate governance and to highlight the significance of creating greater awareness on it among the corporate community. He said the implementation of corporate governance principles was very necessary for public joint stock companies because it contributes immensely in boosting investors' confidence in listed companies and securities markets in the country.

It's worth noting here that the SCA, regarded as the leading securities market regulatory authority in the region, issued in 2007 international standard rules and criteria for corporate governance of listed companies in the country. The framework of this rules and criteria includes upholding the principles of transparency, disclosure, protecting the rights of investors and shareholders, responsibilities of members of the board of directors, the independence of directors and strict implementation of accounting, disclosure and auditing procedures, to match with international standards adopted by the International Organization of Securities Commissions (IOSCO) and other international markets.

Copyright Emirates News Agency (WAM) 2010.