Wednesday, May 19, 2010
UAE Adopting New Corporate Governance Standards
Last November, the United Arab Emirates Ministry of Economy published Ministerial Resolution No. 518. This is the latest effort by UAE and the two stock exchanges -- the Abu Dhabi Securities Exchange and the Dubai Financial Market -- to strengthen corporate governance practices in the UAE.
Among the changes are the requirement that at least 1/3 of directors be independent and a requirement that the chairman not hold a dual position as chairman and managing director.
Resolution 518 also requires stepped up internal controls. For example, companies must now create internal audit departments which report directly to the board.