Corporate governance is the system by which companies are directed and controlled. It establishes the principles and foundations for the distribution of rights and responsibilities among different stakeholders in the company, including board members, managers, shareholders, and other stakeholders. It also clarifies the rules and procedures for making decisions related to company affairs.
Governance rules outline the set of controls, principles, standards, and policies adopted by Investment House Company to manage and oversee its investment, commercial, financial, and administrative operations in order to achieve its goals and plans. These rules also ensure the company’s adherence to best governance practices, enabling the board to fulfill its responsibilities towards the company, achieving the best results for shareholders, and protecting the rights of both shareholders and stakeholders.
Governance focuses on how the board of directors and executive management manage the company’s affairs and business. Its importance is reflected in achieving the following objectives:
Investment House believes that effective governance rules require an active Board of Directors and Executive team who believe in and understand the importance of these rules. This correspondingly includes having an effective and clear organizational structure in terms of roles, specializations, and responsibilities. It also necessitates a sound internal control system through the application of various functions such as (proper planning and clarity of vision, effective management of investment portfolio, policies and procedures, external auditing, internal auditing, risk management, governance, and compliance). This is in addition to fostering a supportive and responsive corporate culture and work environment.
