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ESCA issues corporate governance controls

ABU DHABI — Emirates Securities and Commodities Authority (ESCA) has issued corporate governance controls which aim at creating an internal control systems for listed public joint stock companies.

Shaikha Lubna Al Qasimi, UAE Minister of Economy and Chairperson of ESCA, said these controls contribute to laying down foundations for relationship between CEO’s, boards of directors and shareholders and strengthen the organisational structure of companies.

"These regulations will help companies to open up and expose themselves to global financial markets and attract a broad base of foreign investors who, in turn, boost the company’s financing clout to execute future expansions,” she added. The regulations, she indicated, made its mandatory for companies to prepare a governance report containing detailed accurate information on disclosure and transparency.

The corporate governance controls, she affirmed, had drawn the attention of financial circles in various countries following the collapse and bankruptcy of some major international firms.

"Introduction of these rules in the UAE will further bolster its standing in this respect and push it to advanced ranks. The regulations seek to achieve sound anagement through transparency, integrity and accountability," she affirmed.