The decree issued to boost corporategovernance will send an important message to the global community that the UAEis serious about ensuring that businesses are run to the highest possiblestandards, ACCA ( the Association of Chartered Certified Accountants) has said.
The announcement issued by His Highness Shaikh Mohammad BinRashid Al Maktoum, Vice-President and Prime Minister of the UAE andRuler of Dubai willtighten the regulation and constitution of boards and directors of profit andnon-profit institutions, as well as corporations owned by the federalgovernment.
"Given that the UAE is now oneof the key international business hubs, this announcement, which sets out tostrengthen transparency and corporate governance here, will send positivemessages to potential business and trading partners, to investors and toorganisations looking for a place to base operations," said StuartDunlop, ACCA's Head of the Middle East.
ACCA welcomes the move to prohibit membersfrom serving on more than four company boards and or as presidents of more thanthree federal institutions at the same time.
" ACCA believes that directorsshould be available to devote as much time as is necessary to their duties onthe board and limiting the number of boards on which an individual can sit isan important step to achieving that goal, " said Stuart Dunlop.
"Equally, we are pleased tosee that the resolution sets out the principles, ethics and rules ofprofessional conduct to be adopted by board members, but it is critical thatthose board members ensure that they act professionally and ethically at alltimes since regulation can only go so far in developing good behaviour,"he added.
"ACCAhas campaigned on the importance of corporate governance issues for many yearsglobally - producing research reports and articles which emphasise theimportance of transparency and accountability in the way in which organisationsare managed. And with its increasing importance, corporate governance remainsan area of our focus." concluded Stuart Dunlop.
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© Press Release 2011
