GCC BDI collaborates with SCA to provide Directors with Director Duties & Liabilities Update

Abu Dhabi, UAE 9 May,  In collaboration with the Emirates Securities & Commodities Authority (SCA), the GCC Board Directors Institute (GCC BDI), a not-for-profit organisation that helps board directors acquire the expertise and tools for effective governance, held a webinar to focus on the roles typically expected of directors (both collectively and individually) and the legal duties, obligations and liabilities which they face. The webinar was attended by over 70 board directors and senior executives.

The inevitable implementation of a higher level of corporate governance obligations in the UAE and the wider region brings with it more stringent legal and regulatory obligations and liabilities for directors. It also brings an expectation by shareholders, creditors and other stakeholders that corporate governance best practice will be adhered to by boards and directors.

At the opening of the event, H.E. Dr. Maryam Butti Al Suwaidi, Acting CEO of SCA, said: “SCA implemented a range of controls and regulations aimed towards better corporate governance, in line with the best international practices—especially those developed by the International Organization of Securities Commissions and the Organization for Economic Cooperation and Development—and with the World Bank’s Ease of Doing Business Report and the World Economic Forum’s Global Competitiveness Report.”

“As part of its efforts to implement the standards of governance and to keep pace with relevant developments, SCA introduced decisions, such as The SCA Board of Director’s Decision No. (3/Chairman) Approving the Public Joint-Stock Companies’ Governance Guide, which marked a quantum leap in the development of a governance system for public joint-stock companies,” she explained.

During this webinar, Khalid Garousha, Regional Managing Partner for Allen & Overy, highlighted the key ingredients to ensure directors’ transparency and accountability while always ensuring that directors are acting in the best interests of the company. Key elements highlighted included: the importance of exercising independent judgement; discharging the director role with reasonable care, skill and diligence; how to deal with conflicts of interest; acting within the powers granted; protecting the company’s assets; and obligations when company is facing financial difficulty.

Jane Valls, Executive Director, GCC BDI, explained “Directors have the fiduciary responsibility to act in the company’s best interests. Effective corporate governance raises investors and shareholders confidence, minimizes risks and mismanagement and underpins corporate success and economic growth. Understanding your fiduciary duties as a director is a key part of this”.

Since its inception in 2007, GCC BDI has become the pre-eminent network for board directors and senior executives in the GCC region. The not-for-profit organisation works with more than 2,000 board directors from over 4,000 blue-chip companies across the region to raise the standards of corporate governance and improve board effectiveness.