Bank Corporate Governance Conference Adopting International Best Practice

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Bank Corporate Governance Conference Adopting
International Best Practice

• The ADSM experience and progress
• Mr Hareb Al Darmaki
• Chairman, ADSM
• 5 March 2006

Dec 2005
ADSM
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From Theory to Practice

• Drivers for stock exchanges
• Developing ADSM proposals
• Responses to date
• Views on encouraging good CG

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Drivers for stock exchanges

• ADSMs vision is to be a leading exchange with
  leading or international best practices.
• Good Corporate Governance of listed companies
  attracts foreign and institutional investors,
  which the UAE needs to diversify and grow its
  economy.
• Research shows good governance and good practice
  adds value and improves pricing for companies and
  shareholders.

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Developing ADSM proposals

• Stage One
• New disclosures and Mandatory Audit Committees
  (we hope SCA will endorse most of these in
  Regulations)
• Stage two
• Stronger shareholder rights (if not in the new
  Companies law, these need to be in Company
  Articles of Association)
• Stage three
• Improved liquidity and further shareholder rights
  provisions (again needs the law or Company
  Article provisions)
• A voluntary Code
• For Board independence, composition, procedures
  and disclosures

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Responses to date

• 24 initial responses
• 11 further responses
• 3 substantial
• Comments being reviewed
• Revisions to be published
• SCA to issue new listing regulations
• Seminars for companies planned

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Views on encouraging good CG

• Take action dont wait
• Good Governance is about conduct not rules
• Incentives not criticisms
• Essential while markets are positive
• Education essential
• International obligations
• Community/Peer pressure

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Thank You