In collaboration with the Emirates Securities and Commodities Authority (SCA), the GCC Board Directors Institute (GCC BDI), a not-for-profit organization 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 webinar comes as part of the Effective Governance Is the Foundation of Sustainable Developmentcampaign that SCA launched as part of the Gulf Investment Awareness Program, Mulem. The webinar’s discussions were centered in general on the hypothesis that the inevitable implementation of a higher level of corporate governance obligations in the UAE and the wider region brings with it more stringent legal obligations and liabilities for directors. It also brings an expectation by shareholders and creditors that corporate governance best practice will be adhered to by boards.

The webinar was opened by H.E. Dr. Maryam Al Suwaidi, SCA’s Acting Chief Executive Officer. She reviewed the key actions taken by SCA to promote the implementation of the rules of governance; establish institutional discipline; and support transparency, fairness, autonomy, and sound business practices within joint-stock companies by introducing an interconnected package of regulations and controls to strengthen the corporate governance system in line with international practices, especially those developed by the International Organization of Securities Commissions (IOSCO) and those included in the Ease of Doing Business and Global Competitiveness reports issued by the World Bank and the World Economic Forum, respectively. Dr. Al Suwaidi also reviewed the decisions previously issued by SCA as part of its efforts to implement the standards of governance, most notably its decision approving a guide to the governance of public joint-stock companies, which represented a quantum leap in the development of a governance system for public joint-stock companies as it created a clear and effective legal and regulatory framework that governs their affairs in a manner that helps to maintain the rights of all stakeholders and enhance SCA’s regulatory role.

During this webinar, Khalid Garousha, Regional Managing Partner for Allen & Overy, highlighted the key ingredients to ensure transparency and accountability while acting in the best interests of the company; when to exercise independent judgement, reasonable care, skill and diligence; and how to avoid conflicts of interest and act within the powers granted, protect the company’s assets, and avoid misrepresenting the company’s financial position.

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 organization 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.