Corporate Governance

investment governance in uae

There are many corporate governance requirements that apply to private sector companies and are registered on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM), and also to financial institutions.(regulated by the Central Bank of the UAE (UAE Central Bank).

World Investments works through Corporate Governance Code  , the Securities and Commodities Authority (SCA), which regulates the ADX and DFM, introduced a new corporate governance regulation, applying to all joint stock companies listed on the Market.

The Board of Directors of world investments psc. seeks to maintain the highest standards of integrity and accountability in the stewardship of the Company’s affairs and recognizes that proper and effective corporate governance is important to shareholders and other stakeholders.

Our Board of Directors and management have long recognized the importance of corporate governance practices that help ensure an environment of effective oversight and strong accountability.

Set below are various corporate governance documents, including our Corporate Governance Guidelines, Charters for our Board Committees, Terms of Reference for our Chairman and CEO, and Codes of Conduct.

Board of Directors

The business and affairs of the Company are overseen by the Board of Directors (the Board). The Board’s responsibility is to provide direction and oversight. The Board oversees the strategic direction of the Company and the performance of the Company’s business and management. The management of the Company is responsible for presenting strategic plans to the Board for review and approval and for implementing the Company’s strategic direction.

Corporate Governance Guidelines

to download the full Corporate Governance Guidelines (pdf) click on the link below:

 

 

Chapter 1

Institutional Discipline Standards

Article (3)

The Formation of the Board of Directors

A The management of the Company shall be undertaken by a Board of Directors. The Company’s Articles of Association shall determine the method of formation of the Board of Directors, the number of its members, and the term of its membership.

B.The general assembly elects the Board of Directors members by secret cumulative voting.

C.lf the Government owns (5%) or more of the Company’s capital,  it may appoint persons to represent it in the Board of Directors with the same proportion to the number of the Board members and with a minimum of at least one member if the ratio required to appoint a member exceeds that ratio. 

The Government shall lose its right in voting on the ratio for which its board members are appointed, however, if it has a leftover ratio that does not entitle it to appoint another member, it may use that percentage in voting.

D.Taking  into account the conventions and treaties entered into by the State,  the Chairman  and the majority of the Board of Directors must hold the nationality of the State.

Chapter Two Corporate Governance Article (40)

Controls of Nomination for Board Membership

The Company shall comply with the following controls:

1.The Company’s Articles of Association shall determine the method of formation of  the  Board  of  Directors,  number of  the  Board  members and  term  of membership. Candidates for Board membership shall be represented by female board members (at least 20%), the Company shall disclose the reasons in case no female is nominated; and shall also disclose the rate of female representation in the Board of Directors in its Annual Governance Report.

2.The  Articles of Association shall determine Executive Board members, Non• Executive Board Members and Independent Board members; provided that at least one-third of Board members shall be Independent Board Members and a majority of Board members shall be Non-Executive Board Members who shall have the technical  skills and experience required to serve the interests of the Company.  In all cases, when selecting  Non-Executive  Board members of the Company, it shall be taken into consideration that a Board member shall be able to dedicate adequate time and effort to his/her role and that such role is not in conflict  with  his/her  other  interests.  The Articles  of Association shall  also determine the percentage of female representation on the Board of Directors in case  female  candidates are  nominated  for  membership  within  the  period allocated for nomination and fulfill the requirements of membership.

3.Nomination for Board membership shall be declared and the Company shall announce that with the invitation to the general assembly and it shall comply with the following:

a.The nomination to membership of the Board of Directors shall remain open for

a period of ten days at least from the date of the announcement;

b.The  names and details  of the candidates  shall be published  on the notice board situated in the Company and on the Company’s website at least two days prior to the announced general assembly meeting of the Company;

c.After  conclusion of the period allocated for nomination, a candidate shall not relinquish his/her nomination to another person;

d.To   provide  the Authority and the  Market  with  a  list  of the  names  of the candidates on the day following expiration of the nomination  period.

Article (41)

Terms of Nomination for Board Membership

A  candidate nominated for  Board  membership shall  meet  the  following requirements:

a.The   candidate  shall have at least five-years’  experience  in the field of the Company which he/she is nominated for its Board membership.

b.The  candidate shall not have been previously sentenced to a criminal penalty or for  an offense  that  involves  a breach of honor or integrity  unless  his/her character has been vindicated.

c.The  candidate  shall  not have been subject  to a judgment  of discharge  or dismissal  from the Board of Directors of any shareholding companies listed on the financial market during the year preceding nomination.

d.The  candidate’s  civil  record  issued  by the  Authority shall  be clear  of administrative penalties.

e.The candidate  shall not be subject to any lawsuits,  reports, or prosecution investigations  concerning  any offense that involves  a breach of honesty and integrity.

f.The  candidate shall fulfill any other terms stipulated in the Companies Law or the Company’s Articles of Association.

g.The following documents shall be submitted to the Company:

1.The  candidate’s CV including work experience, qualifications, and the Board seat applied for (Executive, Non-Executive, Independent);

2.An  undertaking to comply with the provisions of the Companies Law and the decisions  issued  in implementation   thereof  and the Company’s Articles  of Association,  and  that  the  candidate will   exert  the  due  care  of a prudent professional person during  the performance of his/her duties;

3.A  statement of the names of companies and corporations which the candidate works for or serves as a  member of the boards of directors therein, as well as any other works the candidate  performs directly  or indirectly that constitutes competition to the Company;

4.ln case of the legal person’s  representatives, an official letter from such legal person shall  be submitted, containing  names of his/her  nominees for Board membership.

Article (5)

Board of Directors’ Meeting

1.The Board of Directors shall meet (4) four times a year, unless the Company’s

Articles of Association provides otherwise.

2.The meeting shall be based on a written invitation from the Chairman of the Board,  or upon the written request of at least two members of the Board unless the Company’s Articles of Association provides otherwise. The invitation shall be sent not less than one week prior to the specified date together with the agenda. Each member has the right to add to the agenda any matter he deems necessary for discussion in the meeting.

3.ln case of a Board of Directors meeting being held to consider inviting the general assembly, the meeting of the Board of Directors should be held at least thirty days before the date of any meeting of the general assembly, and the immediate disclosure to shareholders as per a detailed notice to the Market and on the website of the Company directly after the conclusion of the Board’s meeting declaring its resolutions and the date of publication of the general assembly’s invitation and the meeting’s detailed agenda. The notice shall include the following: “Clarification concerning those who have the right to attend the general assembly meeting or authorizing someone to attend other than the

members of the Board of Directors pursuant to a written delegation and the eligibility of the shareholder to discuss the topics listed in the agenda of the general assembly  and to ask questions  of members  of the Board  of Directors  and auditors,  and the quorum  required  for the validity  of the general  assembly meeting  and the resolutions  of such  meeting.”

4.The   meetings  of the Board of Directors  shall be held in the Company’s headquarter   unless the Board of Directors  considers  otherwise.   The meeting shall be valid only after inviting  all the members  and the attendance  of the majority  of the members   in person.

5.The company  shall appoint  a secretary  to the Board of Directors  who is not a member  of the Board of Directors.

6.A member  of the Board of Directors  shall not delegate  another  member  of the Board of Directors  to attend  in his place unless the Company’s  Articles  of Association   allow that,  provided  that the delegated  member  shall only represent one other  member. ?.Voting  by correspondence   is not allowed,  and a delegated  member  shall vote on behalf  of the absent  member  in accordance  with the delegation.

8.The  Board of Directors  resolutions  shall  be issued  by the majority  of votes  of those  members  and representatives   present  at the meeting.   In the case of parity, the Chairman  shall  have a casting  vote.

Article (9)

Delegation of Administration

A.The Board of Directors may delegate its Chairman or one of its members or Senior Executive Management in some of the administrative issues in which the Board has the power to make decisions. In this case, the delegation shall be in writing and detailing the delegated powers,  especially with regard to cases in which the Senior Executive Management needs to obtain prior approval from the Board of Directors before making any decisions or entering into any commitments on behalf of the Company. A list of tasks and functions which the Board of Directors performs shall be written,  as well as those delegated to Senior Executive Management, and those tasks and functions shall be reviewed periodically.

B.Each  delegation shall be specific with regard to its subject, delegated persons,and the limits  of their powers and in the duration, and that includes the date of presenting its results to the Board of Directors.

Article (10)

Vacancy of the Board Member Position

A.Taking into account the provisions of Article  (143) of the Companies Law,  if a position of a Board member becomes vacant, the Board of Directors shall

appoint a member in the vacant position, and this  appointment shall be submitted to the general assembly at its first meeting to approve the appointment or to appoint another unless the Company’s Articles of Association states otherwise, and the new member shall complete the period of his predecessor.

B.lf vacancies amounted to a quarter of the Board members, the rest of the Board members shall invite the general assembly to convene within  thirty  (30) days from the date of the last seat being vacated to elect who will fill those positions.

C.lf  the Board member is a representative of the Government, or any legal person in the membership of the Board of Directors  as per a letter issued by the represented body,  this body may change its representative in the Board of Directors as per an official written letter directed to the Company in this regard, and the new member shall complete the term  of his predecessor.

C.The position of the Board member is considered vacant in  any of the following cases:

1.lf he dies,  becomes incapacitated or becomes disabled in a way that does not allow him to fulfill his duties as a member of the Board of Directors.

2.lf  he is convicted of any crime  involving his honesty and integrity.

3.lf he declares his bankruptcy or ceased to pay his commercial debts,  even if it is not accompanied by declaring his bankruptcy.

4.lf  he resigns from his position as per a written notice sent to the Company in this regard.

5.lf a decision of his dismissal  was issued by the general assembly.

6.lf  a Board member is absent from the Board meetings for three consecutive sessions or five intermittent sessions during the term of the Board of Directors without an excuse acceptable to the Board.

7.lf  his membership is contrary to the provisions of the Companies Law.

Article (11)

Obligations of a Member of the Board of Directors g

A member of the Board of Directors shall abide  by the following:

A.Maintain the interests of the Company, exert the care of a prudent professional person,  and to perform all actions that are compatible with the purposes of the Company.

B.Act with  honesty  and sincerity,   take  into account  the interests  of the Company and its shareholders,   exert the best effort  possible,   and comply with the provisions  of the laws,   regulations,  and resolutions  in force,  as well as the Company’s   Articles  of Association  and internal  by-laws.

C.Upon   obtaining  membership  of the Board of Directors,  the member  shall disclose  any direct or indirect work that constitutes  a competition  to the Company,   and the names  of companies  and public  institutions  he works  for or serves  as a  member  of the boards  of directors  therein,   and other important commitments,   and shall specify  the allotted  time for them as well as any change as soon as it happens.

D.Allocate  sufficient   time to carry out his responsibilities,    including  preparing  for the meetings  of the Board of Directors  and its committees,  and be keen to attend them.

Article (13)

                            Confidenitality of Data and Information

The Board of Directors shall consider the following:

A.Take all measures to accurately maintain strict confidentiality of the Company’s data and information in a way that ensures it is not exploited.

B.Develop effective contractual arrangements that require,  the other parties who have access to internal data and information related to the Company and its

customers,  to maintain  the confidentiality   of such data and information,    and not misuse  or transfer  it,  or cause  it to be transferred  directly  or indirectly  to other parties.

C.Every  insider shall sign formal  declarations  that confirm  his knowledge  of his possession  of internal  data and information  regarding  the Company  and its customers,  and that he shall bear all the legal consequences   in case of leaking such information   or data or giving   advice  on the basis of the information  in his possession,   and his   commitment  to notify the Company  of any trade carried  out on the securities  of the Mother  Company  or the Subsidiary  Company  before and after those  trades.

Article (14)

           Conflict of Interests

A.If a member of the Board of Directors or a person who represents a body in the Board of Directors has a joint interest or a conflict of interest with the Company in a deal or transaction submitted to the Board of Directors for a resolution,  he must inform the Board of Directors and record that in the minutes. Furthermore, he shall not participate in the voting on the decision relating to the deal or transaction.

B.lf  the member of the Board of Directors fails to inform the Board in accordance with the provision of item (a) of this article,  the company or any of its

shareholders may resort to the competent court to invalidate the contract or order the Member who acted in contravention of these provisions to return to the Company any profit or benefit obtained as a result of entering into this  contract. C.The  Company shall maintain a special register for conflicts of interests in which the cases are recorded in details together with the measures taken in this regard.

Article (15) 

                    Transactions With Related Parties

A.A Company shall not enter into transactions with Related Parties without the consent of the Board of Directors in cases where the value of the transaction does not exceed (5%) of the Company’s capital,  and with the approval of the general assembly where such percentage threshold is exceeded. The Company is not allowed to enter into transactions that exceed (5%) of the issued capital unless the transaction has evaluated by an assessor accredited by the Authority. The Related Party who has an interest in the transaction shall not participate in voting in terms of the decision taken by the Board of Directors or the general assembly in respect of this transaction.

B.ln  the event of a significant change to the terms of the transaction after approval, another approval must be obtained from the Board of Directors or the general assembly, as the case may be.  The deal which exceeds (5%)  of the  issued  capital  shall  be re-evaluated  and its conditions  shall  be reviewed  before its conclusion  by an assessor  accredited  by the Authority  at the Company’s expense.

C.The following  shall  be liable   for damages  to the Company  if transactions  with the Related  Parties  are concluded  in contravention   of Clause  (a) of this article or if it is proven  that the transaction  or the deal is unfair or involves  a conflict  of interests  and incurs  damages  to the shareholders:

1.The   Related  Party with whom  the transaction  was entered  into.

D.The  Board of Directors  if the decision  was issued  by consensus.   However,  if the decision   was issued  by the majority,  dissenting  directors  shall not be held liable  in the event that they  have recorded  their objection  in the minutes.  If one of the members  did not attend the meeting  in which  the decision  was issued,  he is still responsible  for the decision  unless  he proves  that he was unaware  of the decision  or was aware  of it but could  not object  thereto.

Article ( 17)

Company’s Disclosure of related Parties’

Transactions

In case of entering into transactions with Related Parties, the Company’s Chairman shall provide the Authority with a notice which includes the data and information of the Related Party, the details of the deal or transaction, the nature and the benefit of the involvement of the Related Party in the deal, together with a written confirmation that the terms of the transaction or the deal with the

Related Party are fair,  reasonable, and in favor of the Company’s shareholders .

Article ( 18)

          Related  Party Disclosure

A.Prior to entering into a transaction between a Related Party and the Company, the Mother Company, or the Affiliate Company reaching the limit stipulated in this Decision, the Related Party shall disclose immediately in writing, addressed to the Board of Directors,   the nature  of the deal,   conditions  and all substantial information  about his share  or his stake  in the two contracting  companies  and his interest  or benefit,   which  the Board of Directors  is required to immediately

disclose  to the Authority  and the Market.

B.The details  of the deal referred  to in paragraph  (a) of this article,  together  with the conditions  and conflict  of interests  of Related  Party shall be listed in the annual  financial  statements  submitted  to the general  assembly,   and this data shall be published  on the website  of the Market  and the Company.

Article (19)                                   

Access to Transactions Concluded With related Parties

In the event the Company enters into transactions with Related Parties, the shareholder who owns (5%) or more of the Company shares is entitled to the following:

A.Review the Company’s records and any documents relating to those transactions.

B.Filing  a lawsuit before the competent court regarding the transactions with Related Parties to compel the parties of the deal to provide all information and documents relating to those transactions, whether directly to prove the facts set out in the case or relevant to it or to lead to the discovery of information that will help in the detection of the facts.

C.lf  it is proven to the competent civil court that the deal is unfair or involves a conflict of interests and causes harm to the rest of the shareholders, the court may cancel the deal and oblige the Related Party to render the profit or benefit gained to the Company, in addition to compensation if harm is proven against the Company.

Article (21)

Remuneration of the Chairman  and Members of the Board of Directors

A.Remuneration of the Chairman and members of the Board of Directors is made

up of a percentage  of the net profit not exceeding   10% of the fiscal year profits. The Company  may also pay expenses,  fees,   additional  bonuses,   a monthly salary  as decided  by the Board of Directors  to any of its members  if this member works  in any committee,  makes  special  efforts,   or additional  work to serve the

Company  in addition  to his regular  duties as a  member  of the Board of Directors. Attendance   allowance  may not be paid to the Chairman   or a Board  member  for attending  the Board  meetings.

B.The   fines  imposed  on the Company  due to contraventions   by the Board of Directors  of the Companies   Law or the Articles  of Association   of the Company during the ending  financial  year shall be deducted  from the remuneration  of the Board of Directors.  The general  assembly  may not deduct  such fines  if it finds that such fines are not due to omission  or error  by the Board  of Directors.

Article   (23)

General  Assembly  Meeting

A.The general assembly of the Company shall be held in the location specified in the Company’s Articles of Association, and each shareholder has the right to attend the meetings of the general assembly and shall have the votes equal to the number of shares in his possession. A person who has the right to attend the general assembly may delegate someone from other than the members of the Board of Directors to attend on his behalf as per a written delegation. A

delegated person for a number of shareholders should not have more than (5%) of the Company’s issued capital after gaining that delegation. Persons lacking legal capacity and are incompetent must be represented by their legal representatives.

B.A  legal person shall have the right to delegate his representatives or those in charge of his administration  as per a decision issued from the Board of Directors or any similar body,  to represent him at the meetings of the general assembly of the company, and the delegated person shall have the powers prescribed in the delegation decision.

C.The  owner of the share, who is registered in the day preceding the meeting of the general  assembly  of the Company, has the right to vote  in the general assembly of the Company.

D. Subject to the provisions of Article (183) of the Companies Law,  a shareholder may vote electronically  in the  General Assembly meetings of the Company in accordance with  the mechanism adopted by the Market, where the Company’ shares are listed,  and approved by the Authority.   In such case, the following requirements shall be satisfied:

1.The Company’s Articles of Association shall allow the  use of electronic voting in the  General Assembly meetings.

2.The shareholder must sign a prior declaration before the meeting confirming his written  consent  to follow the electronic  voting  mechanism  and prove his attendance in  the meeting and his full knowledge of how to use such mechanism and the consequent limitation of his electronic voting on the agenda items of the General  Assembly  before the beginning  of the meeting,  and that he cannot discuss the agenda items or vote in the event of adding new items to the agenda of the General Assembly; and confirming his adherence to all the controls issued by the Market in this regard.

3.The  Chairman of the meeting shall explain the number of shares participating in the meeting by electronic voting, whose attendance has been confirmed in the register of shareholders when announcing that the quorum for the meeting has been realized.

4.The  vote collector,  upon voting  on the resolutions of the General Assembly, shall  indicate  the  number  of votes  cast through  electronic  voting   on each resolution   of the General  Assembly.

5.Any other  requirements   as determined   by the Authority. 

Article (24)

The Invitation to the General Assembly Meeting

a.The Board of Directors shall invite the General Assembly to convene within the four months following the end of the financial year, as well as whenever required. b.Except for the General Assembly  meeting postponed for lack of quorum in accordance with Article (183) of the Companies Law,  subject to the approval of the Authority, the invitation for convening the General Assembly meeting shall be sent out to all shareholders  according to the following controls:

1.Announce the General Assembly invitation before the date set for the meeting in accordance with the provisions of Article (172) of the Companies Law.

2.Publish  the announcement  of the invitation to the meeting in two local daily newspapers circulated in Arabic.

3.Notify the shareholders by registered letters or by sending phone SMS and e•mail (if any) as provided for in the Article of Association.

4.Notify  the Authority and the competent authority with a copy of the invitation papers prior to publication.

c.The announcement of the invitation to the meeting shall include the agenda, place,  date and time of the first meeting and the second meeting in the event the quorum for the validity of the first meeting is not met, a statement of the right holder to attend the meeting indicating the permissible delegation of a person of the  right  holder’s choice  under  a  special  proxy  in writing,  the  right  of the shareholder to discuss the items of the agenda of the General Assembly and to ask questions to the Board of Directors and the auditor, the quorum required for the validity of both General Assembly meetings and the decisions issued therein, and a statement of the right holders to dividends, if any.

d.Adherence  to any other requirements as determined by the Authority.

Article (32)              

Shareholders’  Rights

a.All the shares  issued  by the Company  within  the same class of shares  shall be equal  in rights and obligations.

b. The  shareholder    shall  be entitled   to all the  rights  associated   with  the  share according  to the provisions  of the Companies   Law, particularly  the following:

1.The   right to obtain  a share  in the profits to be distributed.

2.The  right to obtain  a share  in the Company’s   assets  upon liquidation.

3.The   right  to attend  meetings   of the  general   assembly   and  participate   in the discussions   and vote on its decisions.

4.The  right to dispose  shares.

5.The  right  to review  the  Company’s   financial   statements   and  reports,  records, and documents.

c.A  shareholder   in the  Company   who  files   a  lawsuit   against   the  Company, Chairman   of its  Board,  any Board  member,   or its executive   management   before a competent    court  shall  have  the  right  to obligate   the  defendant   (s) to do the following:

1.Provide   the  information   which  the  defendant   has  based  his defense  thereon before  the  court,  the  information   that  directly   proves  specific  facts  of the  claim which  the  plaintiff  shareholder   has filed with the court,  and any other  information relevant  to the claim subject.

2.0bligate     the defendant  to submit   any documents   or sets of documents   relevant to the case, without  limitation 

d.A  shareholder   who files a liability  lawsuit  against  the Board  of Directors  or any Board  member  shall  be entitled  to question  the defendant  and/or  defendants  and testimonies   directly  during the court sessions.

Article (33)

The Required Controls to Ensure Shareholders’ Practice of their  Rights

The Company’s  Articles of Association  and internal by-laws shall include the

required procedures and controls to ensure all the shareholders’ practice of their rights,  including:

a.Providing   all the information that enables the shareholders  to practice their rights  duly  and indiscriminately, including  their  awareness  of the rules that govern general assembly meetings and voting procedures.  Such information shall be complete and accurate and shall be provided and updated regularly on a timely basis,  including any information with regard to the Company’s proposals before voting in meetings, or any other information.

b.Providing   an opportunity  to all shareholders  to participate  effectively  in the  deliberations     of  the  general   assembly    meetings   and  vote  on  its  resolutions. Shareholders   shall  have  the  right  to discuss    and  raise  questions   regarding   the listed topics  in the agenda  to the  Board  members  and the auditor,   and the Board of  Directors   or the  auditor   shall  answer   such  questions   to  the  extent  that  the interests  of the Company  are not compromised.

c.Avoiding    imposition  of any restrictions  that may lead to prevent  the shareholder from  using  his/her  right  of voting  and facilitating   shareholders’    practice  of such right.

d.Preventing      imposition    of  any  restrictions    on free  trading   of the  Company’s shares  in the Market.

Article (35)           

Investor Relations

The Company shall comply with the following controls:

A.Appointing  an employee to undertake all the duties in relation to managing investor relations, such employee shall meet the following conditions:

1.Command  of both spoken and written Arabic and English.

2.A  university degree as well as practical experience  in the fields of business, accounting, or investors public relations.

3.Familiarity with relevant legal and legislative requirements.

4.Full  knowledge of the Company’s activities and potential opportunities.

5.Ability  to use various means of communication and possession of the skills of  communication   with investors  in securities.

6.Ability   to deliver  the  Company’s   technical   and financial   information   that  may require  a specialist  to clarify  and simplify  to investors.

B.Creating     a  webpage   for  investors   relations   on the  Company’s    website   and updating  and  maintaining   it regularly  in compliance   with  international   standards; such  webpage   shall  include:   data  and  means  of communication    with  Investors Relations   Department,   like telephone   number  and email,  all the reports  relevant to financial   results,  whether   archived-  or published,    statements   of the financial year  including  dates  of publication   of financial  results  statements,   minutes  of the general  assembly  meetings,   and any other important  events.

C.Publication   of the information   and data disclosed  to the regulatory  authorities, markets,   or the  public,   on the  Company’s   website;   such  information   and  data shall include,  for example:

1.1.News,      events,  developments   and material  information  of the Company.[121

2.Annual and interim financial statements and reports of the Board of Directors for several past years.

3.Governance  reports.

4.Shareholding structure and percentage of ownership.

5.Regularly  updated  general  information  on the Company’s  official  website concerning its activities, business strategies, vision, and future plans.

6.lnformation on the price of the Company’s share in terms of:  the closing price, opening price,  highest and lowest prices throughout the year,  different values of the share, and some financial indicators.

7. Information  about shareholders’ pending dividends  and the mechanism of collection of such dividends.

8.Contact  information   of investor   relations  employees   and  mechanism  of submitting opinions, comments, and inquiries.

D.Formation   of a  committee comprised of senior employees  in  the event of a

crisis; such committee shall design a plan for communication with investors and the media with regard to the practical steps the Company takes to face the crisis and shall designate an official  spokesperson to undertake the said communication process in the name of the Company.

E.Publication  of preliminary  presentations  clarifying  the Company’s  financial status,  strategies, and future expectations,  at least once annually,  provided that such presentations  shall be updated after each disclosure  of financial  results (quarterly, half-annually).

F.Setting the required procedures for providing all the data and information for the investors  relations employee, including Board of Directors decisions once issued as well as periodic and annual financial statements upon approval thereof by the Board,  to enable the investor relations employee to implement  his/her duties stipulated in this article.

Article (36) Selection  of the Auditor

1.The  Board  of  Directors shall  nominate one  auditor  or  more  upon  the

recommendation of the audit committee. The auditor shall be appointed, and its remuneration fixed, by a resolution of the general assembly of the Company.

2.Such  auditor  shall  be recorded  in the Authority’s  register  of professional auditors.

3.The  auditor  shall  be selected on  criteria   of  efficiency,  reputation and experience.

4.None  of the  employees   of the  auditing  office  may  be appointed   at the Company’s Senior Executive Management before the lapse of two years at least as of the  date  of such  employee’s  leaving  the  auditing  of the  Company’s accounts.

Article  (42)                                   

Duties of the Chairman of the Board of Directors

In particular, the Chairman of the Board of Directors shall assume the following duties and responsibilities:

1.Ensures   that the Board of Directors acts efficiently, fulfills its responsibilities and discusses all its issues on a timely basis.

2.  Develops    and  approve    the  agenda   of  each   Board   meeting,     taking   into consideration    any  issues  that  Board   Members   propose   to  be included   in the agenda  for the  meeting.  The  Chairman   of the  Board  of Directors   may  delegate this  responsibility   to a  certain  Board  Member  or the  Board  secretary   under  his own supervision.

3. Encourages   all Board  members  to fully  and efficiently  participate   in the  Board

of  Directors    in  order  to  ensure   that  the  Board   of  Directors    acts  in the  best interests  of the Company.

4.Adopts  suitable procedures to ensure  efficient communication  with the shareholders and  the  efficient   communication     of their  views  to  the  Board  of Directors.

5.Facilitates    effective  participation   of Board  members,  specifically   Non-Executive Board  members   and  develop   constructive    relations   between   Executive   Board members  and Non-Executive   Board  members.

Article (43)                        

Duties of the Board of Directors

The Company’s   Articles  of Association   shall determine  the duties  and responsibilities   of the Board of Directors,   and the Board of Directors  shall undertake  the following:

1.Taking    the  necessary   procedures   to ensure  compliance   with  applicable   laws, regulations,    and  resolutions,    as  well  as  the  requirements    of the  supervisory authorities;

2.Adopting   the  strategic   approaches   and  main  objectives   of the  Company   and supervising   implementation   thereof.  This  includes:

a.Setting     the  Company’s    comprehensive     strategy   and  main  work  plans  and reviewing  thereof  constantly;

b.Setting  risk management   strategy  and reviewing  thereof  constantly;

c.Specifying    the  best  capital   structure    for  the  Company,    its  strategies,    and financial  objectives  and approval  of annual  budgets;

d.Supervising   the Company’s   main capital  expenses  and ownership  and disposal of assets;

e.Setting   performance   objectives   and monitoring   implementation   and the overall performance   of the Company;

f.Conducting    periodic  reviews  of the Company’s   organizational   and occupational structures  and adopting  these structures.

3.Taking   the necessary  procedures  to ensure  efficient  internal  control  of the work flow in the Company,  including:

a.Setting    a clear  policy  approved   by the  Board  of Directors   to ensure  efficient  internal  control  of the work flow in the Company;

b.Setting   written   and  detailed   regulations    and  procedures   for  internal   control, which  determines   the  duties  and  responsibilities    in compliance   with  the  policy approved   by the Board  of Directors  and the general  requirements   and objectives stipulated  in the applicable  legislations,   including  this Decision.

4.Establishing    an  internal  control  department   to follow  up compliance   with  the

applicable laws,  regulations,    and  resolutions;    requirements    of the  supervisory bodies;  and the  internal  policy,  regulations,   and  procedures   set by the Board  of Directors.

5.Setting     written   procedures    to  manage   conflict    of  interests    and  deal  with potential    cases   of  such   conflict   for  Board   members,    the  Senior   Executive Management,   and shareholders,   and setting  the procedures  to be taken  in  cases of misuse  of the  Company’s   assets  and  facilities   or misconduct   resulting   from transactions   with Related  Parties.

6.Ensuring   the soundness   of administrative,     financial,   and  accounting   systems, including  the systems  related to preparation  of financial  reports.

7.Ensuring   the  use  of appropriate    regulatory   systems   for  risk  management   by outlining  potential  risk and discussing  it with transparency.

8.Setting  clear and precise  standards  and procedures  for Board  membership  and putting them  in force  subsequent  to approval  by the general  assembly.

9.Setting    a  clearly   defined   delegation    policy   in  the  Company    to  determine delegated  persons  and the powers  assigned  to them.

a  a.Setting    a  policy   that  regulates    the  relationship    with  Stakeholders     in  the manner  that  ensures   the  Company’s    fulfillment   of its obligations   towards  them, preserving  their  rights,   providing  them with required  information,  and establishing sound  relations  with them,   and such policy shall cover the following  aspects: a.Mechanisms      for  indemnifying    Stakeholders    in the  event  of violation   of their rights approved  by laws and protected  by contracts ..

b.Mechanisms    for  settling   complaints   or disputes   that  may  arise  between   the Company  and Stakeholders.

c.Maintaining   confidentiality   of the information  related  to them.

d.The  Company’s   policy towards  the local community  and environment.

11.Setting    a code  of conduct   for  the  Board  members,   the  staff,  auditor,   and persons  assigned  some of the Company’s   works.

12.Setting  procedures  to apply  governance   rules in the Company,   review  of such procedures,   and assessment   of compliance  thereto  on annual  basis.

13.Establishing     appropriate   development   programs  for all members  of the Board of Directors   to develop  and  update  their  knowledge   and skills,   ensure  effective involvement    in  the   Board   of  Directors   and   ensure    compliance   with   the requirement   to implement   any training  or qualification   programs   as determined by the Authority  or the Market. (13)

14.Familiarizing     a  newly   appointed    Board   member   with   all  the  Company’s departments   and sections  and providing  him/her  with all the information   required to ensure  correct  understanding    of the  Company’s    activities   and works  and full  realization   of  his/her   responsibilities,    all that  enables   him/her   to  perform   their duties  duly  in accordance   with  the  applicable   legislations,    all  other  regulatory requirements,   and the Company’s   policies  in its field of business.

15.Setting     procedures   to  prevent   the  insiders    in the  Company   from  using  the confidential   internal   information   to make tangible  or intangible  gains.

16.Setting   a mechanism   for  receiving   shareholders’    complaints   and  proposals including     their  proposals   to  add  particular    issues   in the  general   assembly’s agenda  in a manner  that ensures  studying  such  proposals  and  making  the right decisions  about them.

17. Adopting   criteria  for  granting   incentives,   bonuses,   and  privileges   to  Board members    and  Senior   Executive    Management     in  a  manner   that  serves   the Company’s   interest  and realizes  its objectives.

18.Setting  the Company’s   disclosure  and transparency   policy and following  up its implementation    in  accordance   with   the   requirements   of  the  supervisory authorities  and applicable  legislations,   such  policy shall include  the following: a.Commitment    to disclose   periodic  reports,   Material  Information,   ownerships   of insiders  and their  relatives  of securities   issued  by the Company,   Related  Parties transactions    with  the  Company,   and  the  benefits   of the  Board  members   and Senior   Executive   Management.

b.Providing    information    to  shareholders    and  investors   precisely,   clearly,   and timely  so as to enable  them to make their decisions.

c.Using  the Company’s  website  to enhance  disclosure  and transparency.

19.Setting   a clear policy for distribution  of the Company’s   profits  in a manner  that serves  the interests  of both the shareholders   and the Company,  such policy  shall be displayed  to shareholders   in the general  assembly  meeting  and mentioned   in the Board of Directors’  report.

Article (45)                                 

A Board Member’s Loss of lndependency

a.If the member  or any of his/her  first degree  relatives  is serving  or has served  in the  senior   executive    management    of  the  Company,   the  parent   company   or subsidiary   company   thereof  during  the  last two years  preceding   the date  of his nomination  for the Board membership.

b. If the  member  or any  of his/her  first  degree  relatives   has a direct  or indirect interest    in  the   contracts   and   projects  engaged    with   the   Company  or  its subsidiaries   during  the last two years  and such deals have surpassed   (5%) of the paid  up capital  of the Company   or the amount  of AED  5 million  or its equivalent in a foreign   currency,   whichever    is lower,  unless  the  relationship    is within  the nature  of the Company’s  business  and without  preferential  conditions.

c.lf   the  member  has worked  for the  Company  or its subsidiaries   during  the last two years  preceding  the date of his/her  taking  on the position  of a member  of the Board of Directors.

d.lf  the  member  works  for or is a partner  in a  company  that  provides  consulting work   for  the  Company    or  any  of  its  parent,   subsidiary,   sister   or  affiliate companies  during  the last two years.

e.lf the  member  has any personal  service  contracts  with the Company  or any of its parent,  subsidiary,  sister  or affiliate  companies  during the last two years.

f.lf  the  member   is directly   linked  to a non-profit   entity  that  receives   substantial funding  from the Company  or its subsidiaries.

g.lf   the   member   or  a  relative    thereof    is  a  partner   or  an  employee  of  the Company’s    auditor,   or  if during   the  last  two  years  prior  to  the  date  of  his/her taking  on the position  of a member  of the Board  of Directors,  the member  was a partner  or an employee  thereof  or with the auditors  of the Company.

h.lf   the member  and/or  his/her  minor  children  have a share  of (10%)  and more in the Company’s  capital.

i.The  independence   of a Board  member  is not affected  solely  by the cause  that the   Board   member    is  an  employee  of  the  Parent   Company    or  any  of  its subsidiaries   if any   of such  companies   is a  government   entity  or the government

or any of the government’s   subsidiaries   owns at least (75%) of such companies.

Article (47)

The Nominations and Remunerations Committeek

The  Board  of Directors  shall form  a  permanent  committee  called the Nominations and  Remunerations    Committee.   Such  committee    shall  convene   its  meetings once annually  or as required,  and its duties shall  be as follows:

1.Setting    a  policy   for  nomination    of  the  Board   and  executive    management membership   with  the aim of varying  between  the two genders  in the Board  and encouraging   female   nominees    through   offering    privileges    and  training   and motivational   programs,   and submitting  a  copy  of such  policy to the Authority  and any amendments   thereof;

2.Regulating      and   following   up  the   procedures   of  nomination   for   Board membership    in accordance   with  the applicable   laws  and  regulations,   as well  as the provisions  of this Decision;

3.Constantly   verifying  independence   of independent    Board  members;

4.lf   the committee   finds  out that one of the members  has lost independence,   the committee shall   bring   the  issue  before   the  Board   of  Directors   to  inform   the

member   by a  registered   letter  at  his/her   address   registered   at the  Company, clarifying   the reasons  for the  loss  of independence;   such  member  shall  reply  to the  Board   of  Directors   within   fifteen   days  from  the  date  of  receiving    notice thereof,   and  the  Board  of  Directors   shall  issue  a decision   as to whether   such member  is independent   or otherwise   in its first  meeting  following  reception  of the Board   member’s    reply   or  elapse   of  the  period   mentioned    in  the  previous paragraph  without  replying;

5.Taking    into  consideration    article  (145)  of the  Companies   Law,   if the  Board  of Directors’   decision   of a  member’s    loss  of independence    affects  the  minimum percentage   of  independent   Board   members,    the   Board   shall   appoint    an independent   member  to replace  such  member  in case the latter  submits  his/her resignation   for  losing  independence;    if such  member  refuses  to submit  his/her resignation,    the  Board  of  Directors    shall   bring  the  issue  before   the  general assembly  to issue  the decision  of approval  of appointing  another  Board  member or open the door for nomination  to elect a new Board member;

6.Setting   the  policy  for granting   bonuses,   privileges,   incentives,   and salaries  to the  Company’s   Board  members   and  staff,   reviewing   such  policy  annually,   and ensuring  that  the  bonuses    and  privileges   offered   to  the  Senior   Executive Management   are reasonable  and in line with the Company’s  performance;

7.Annual    review  of the skills  required  for  Board  membership   and  preparation   of the  required  capabilities   and qualifications    for  Board  membership   including   the time a  member  shall  need to allocate  to do his/her duties as a Board member;

8.Review   the  Board  of  Directors   structure   and  submitting    recommendations regarding  the changes  that may be made;

9.Determining      the  Company’s   needs  of qualifications    at the  Senior   Executive

Management   and the staff levels and the criteria  for selection  thereof;

10.Setting     the  Company’s    human   resources    and  training    policy,   monitoring implementation   of such policy, and reviewing  thereof  on annual  basis;

11.Any   other matters  determined  by the Board of Directors.

Article (48)            

Audit Committee

1.The  Board  of  Directors   shall  form  a permanent   committee   called  the  Audit Committee.   All the  committee   members   shall  have  knowledge   in financial   and accounting   matters  and one  of them  at least  shall  have  practical   experience   in accounting    or finance   fields  or shall  have  a  university   degree  or professional certificate  in accounting  or finance  or other  relevant  fields.   One or more members may  be appointed    from  outside  the  Company   in case  the  available   number  of Non-Executive   Board  members  is insufficient.

2.The  committee   shall  convene  its meetings  once  every three  months  at least or as required.

3.Any  former  partner  at the  Company’s   auditing  office  shall  not be a  member  in the Audit  Committee   for the  period  of one year  as of the date  of expiry  of such partnership    or any  financial    interest   which   he/she   is involved   in the  auditing office,  the latest of the two dates.

4.The  Company   shall  provide  the  Audit  Committee   with  sufficient   resources   to perform  its duties,  including  a permission  for the committee  to seek assistance  of experts  whenever  required.

Article (49)

Duties of the Audit  Committee

The Audit  Committee  shall undertake  the following  duties:

1.Review    the Company’s  financial  and accounting  policies  and procedures.

2.Monitoring    the  integrity   of the  Company’s    financial   statements    and  reports (annual,   semi-annual,    and  quarterly)   and  review  thereof   as  part  of its  normal work during  the year,  and the committee  shall particularly  focus  on the following: a.Any  changes  in accounting   policies  and practices;

b.Highlighting   the aspects  that are subject  to the management’s   discretion;

c.Substantial    amendments   resulting  from auditing;

d.Supposing   continuity  of the Company’s   business;

e.Commitment    to the accounting  standards  approved  by the Authority; f.Commitment   to the listing and disclosure    rules and any other  legal requirements related  to preparation  of financial  reports.

3.Coordinating   with the Company’s Board  of Directors,  Senior  Executive Management,   and the financial   manager  or the  manager  doing  such  role  in the Company,  for the purpose  of performing  its duties.

4.Considering    important   and  unusual  clauses  that  are or shall  be mentioned   in

such  reports  and accounts,   the committee  shall also pay the required  attention  to any  issues  brought  up by the financial   manager,   the  manager   doing  such  role, compliance  officer,  or the auditor.

5.Submitting    a  recommendation    to the  Board  of Directors   respecting   selection, resignation,    or  discharge    of  the  auditor,   and  in case  the  Board   of  Directors rejects  the  recommendation    of the Audit  Committee   in this  regard,  the Board  of Directors   shall  include  in the Governance   Report  a  statement  clarifying  the Audit Committee   recommendations   and  the  reasons   for  the  Board   of  Directors’ rejection  thereof.

6.Setting  and implementing   the policy of contracting  with the auditor,  submitting  a report  to  the  Board  of  Directors,   specifying   the  issues  the  committee   deems necessary to  take  procedures    in relation   to,   and  submitting    the  committee’s recommendations concerning  the steps  required  to be taken;

7.Ensuring    the auditor’s  fulfillment   of the terms  stipulated   in the applicable   laws, regulations,    and  resolutions    and  the  Company’s   Articles   of Association,   and following  up and monitoring  his/her  independence.

8.Meeting  with the Company’s   auditor  without  attendance  cf any of the personnel of the  Senior   Executive   Management    or representative    thereof,   at least  once annually,   and  discussing   with  the  auditor  the  nature  and  scope  of the  auditing process  and its effectiveness   according  to the approved  auditing  standards.

9.Studying   all that is related  to the auditor’s   job,  work  plan,   correspondence   with the  Company,    comments,    proposals,    concerns,   and  any  substantial    inquiries posed    by  the   auditor    to  the   Senior    Executive   Management   concerning accounting   books,  financial   accounts,   or control  systems,   and following   up the Company’s    board  of  Directors   response   thereto   and  provision   of the  facilities required  for performing  the auditor’s  job.

10.Ensuring  timely  response  of the  Board  of Directors  to inquiries  for illustration and substantial   matters  mentioned  in the auditor’s   letter.

11.Review   and assessment   of internal  control  and  risk management   systems  in

the Company.

12.Discussing     the  internal   control   system   with  the  Board   of  Directors    and ensuring  the latter’s   establishment   of an effective  system  for internal  control;

13.Considering   the results  of primary  investigations   in internal  control  issues  as assigned  to the committee   by the  Board  of Directors  or based  on an initiative  on the part of the committee  and the Board of director’s  approval  of such initiative.

14.Review    of  the  auditor’s    assessment     of  internal   control   procedures    and

ensuring  coordination   between  the internal  and external  auditors.

15.Ensuring   availability   of  the  resources    required    for  the  internal     control department,   and reviewing  and monitoring  the effectiveness-of    such department.

16.Studying    internal   control   reports   and  following    up the  implementation     of corrective  measures  for the comments  arising  from such reports.

17 .Setting  the  rules  that  enable  the  Company’s   staff  to confidentially   report  any potential  violations   in financial   reports,  internal  control,   or any other  issues  and the  procedures    sufficient   for  conducting    independent    and  fair  investigations concerning   such violations.

18.Monitoring     the  extent   to  which   the  Company    complies    with  the  code  of conduct;

19.Review  of Related  Party transactions   with the Company,   managing  conflict  of interests   ,    and submitting   recommendations    concerning   such transactions   to the Board  of Directors  before concluding  the contracts.

20.Ensuring   implementation   of code of conduct  related  to the committee’s   duties and powers  assigned  to it by the Board of Directors.

21.Submitting      reports    and   recommendations      to  the   Board   of  Directors concerning   the above  mentioned  issues as stipulated  in this article.

22.Considering   any other issues determined  by the Board of Directors.

Article (50) Internal Control

The Company  shall apply a  precise  internal  control  system  that aims to develop  an  assessment   of  the  Company’s   means   and  procedures   of  risk rnanaqernent,    sound  application    of  corporate   governance    rules,   verifying   the Company  and  its staff  comply  with  applicable   laws,  regulations,   and resolutions that  govern   the  Company’s    operations  as  well  as  internal    procedures    and policies,   and  review  of financial   statements   that  is presented   to the  Company’s. Senior  Executive  Management   and used for drafting  financial  statements.

1.After   consultation   with   the  Senior   Executive    Management,   the  Board   of Directors    shall   issue  the  internal   control   system   and  such   system   shall   be implemented   by a competent  department  for internal  control.

2.The  Board  of Directors   shall  determine   the  objectives,   duties,   and  powers  of the  internal   control   department  that  shall   enjoy   adequate    independence     to perform  its duties  and shall directly  report  to the Board of Directors.

3.The   Board   of  Directors  shall   appoint    a  director  for  the   internal    control department.

4.The   Board  of Directors  shall  conduct  an annual  review  to ensure  efficiency   of the  internal   control  system  in the  Company   and  any  Subsidiary   Company   and disclose  the  results  to shareholders   through  the  Corporate   Governance   Annual Report.

5.The  annual  review  shall specifically  cover the following  elements:

a.Key   control  elements,   including   control  over  financial   affairs,  operations,   and risk management.

b.Changes   that  have  taken  place  since  the  last  annual  review  was  conducted concerning    the  nature  and  extent  of  major  risks  and  the  Company’s   ability  to respond  to operational  changes  and changes  in the external  environment.

c.Scope   and  nature   of  ongoing   control   conducted    by the  Board  of  Directors regarding  risks,   internal  control  system,  and internal  auditor’s  duties.

d.The  frequency   of reporting   to the  Board  of Directors   and  its committees   the results  of control  operations  to enable  the Board of Directors  to assess  the status of  the   internal    control    system    in  the   Company    and  the  efficiency   of  risk management.

e.Detected  failures   and  shortcomings   of  the  control   system   or  unexpected emergencies   that   have   materially   affected   or  may   materially   affect    the performance   or financial  status  of the Company.

f.Efficiency    of  the  Company’s    operations  regarding    financial  reporting    and compliance  with listing and disclosure  rules.

g.Verifying all transactions   whether   they  are conducted  with  Related  Parties  or involve a  conflict    of  interests  and  ensure   compliance    with   the  procedures regulating  such transactions.