Corporate governance in Dubai
With the fast growing economy, the Middle East has increased awareness of corporate governance in the past decade. The level of sophistication in governance laws and frameworks may vary but there is real focus on implementing these laws and requirements, applicable to the corporate governance in the Middle East.
Corporate governance advisory services are mostly driven with the need for more foreign direct investment. Most of the businesses in the Middle East companies are facing competition due to globalization. Now, these companies learn corporate governance system and professionalize the way they do their business.
What is corporate governance?
Corporate governance relates to the practices, process, and structures of a company that enable a business to meet its financial goals, operational, and strategic goals, with long standing sustainability and corporate performance.
Corporate governance companies with good principles reduce risk, increase transparency and such practices monitor your business in an effective manner.
Good company governance reflects a company’s ethics and brings practical benefits by increasing efficiency and leading to higher valuation of the company’s shares.
What are the key elements required to implement corporate governance?
Corporate governance companies follow the below given key elements to implement effective practices,
Qualified board
The board should have directors and shareholders with experience and deep knowledge in business. The majority of board members should be independent and free from day to day management of the company. This ensures diverse and unbiased view on company governance.
Roles and responsibilities
While approaching corporate governance advisory services in Dubai, they define the roles and responsibility, especially managers, directors, or GM are responsible for the day to day management of business. With relevant experience and qualification, they comply with the MoA and other laws.
Some of the key responsibilities of manager include,
- Prepare balance sheet and audited accounts
- The audited accounts must be prepared within 3 months from the end of company’s fiscal year.
- The balance sheet and other documents must be presented to the shareholder for approval
- Responsible for VAT submissions
Ensure ethical behavior
According to the company governance, managers should never breach their duties. As per the company’s commercial law, managers are not exempted from including language to this respect into this MoA. The company should have a code of conduct and it’s significant to instill a perfect business culture compliant with the company’s policies and UAE law.
Performance Evaluation
While implementing corporate governance, focus on measurable performance targets and evaluate it on a regular basis. This should be tied with compensation or potential termination in the event of poor performance.
Risk-management
Corporate governance companies support businesses in identifying the risk and produce certain risk management procedures. This include financial risks, risk to company reputation, operational risks, legal risk, and supplier risk. Identify both long-term and short-term risk and determine the performance effect they could have on business. With the help of risk management framework, these risks could be reduced.
Some options to reduce overall risk,
- Clear understanding of your company’s business
- Focus on legal and regulatory developments
- Evaluate the roles and responsibilities prior to accepting managing roles
- Have good corporate governance procedures
- Internal reports
- Record keeping
- Clear view on the corporate structure of the company
- Be cautious in marketing products
- Understand your capacity as a manager
- Due diligence on business partners
- Never ignore T&Cs
- Avoid issuing post-dated cheques
On the whole, it’s significant to comply with the laws of UAE, maintain good corporate governance and focus on conducting annual general meetings. Because, annual general meetings are mandatory under UAE commercial companies law!
Why choose Amicus Tax?
Amicus Tax is one of the best corporate governance companies in Dubai with great experience in handling thousands of clients in various markets and industries. We support in this crucial task considering your market area and keeping the technical efficiency in mind.
If you’re looking to enhance the overall corporate governance, institutionalize your family business, or improve the effectiveness of your board, then A & A associates can help you with some highly-specialized corporate governance services.
Steps in implementing corporate governance advisory services,
- Assessment – understand strength and areas for improvements
- Action – create effective operating model
- Reporting – manage complexities in jurisdictional requirements
- Board structure – assist boards on achieve desired results
- Family governance – creating legacies
- Corporate secretarial services – stay up-to-date with regulations and legislations
We have demonstrated utmost professionalism by serving as one of the popular corporate governance advisory services in Dubai.