A department has been established to control auditors
"Securities": Shareholders have the right to dismiss the board of directors if they are not satisfied with the company's performance
The Securities issued a mechanism for dealing with troubled and suspended public shareholding companies. Archives
The Securities and Commodities Authority confirmed that it imposes on companies, according to the Corporate Governance Guide, standards of efficiency and suitability when appointing members of the Board of Directors, the most important of which is the availability of efficiency, independence and experience, confirming that the Companies Law has allowed, in the event of the shareholders ’dissatisfaction with the performance of the Board of Directors, the possibility of isolating Some or all of the board of directors.
The authority assured, to "Emirates Today", that, in order to enhance its supervisory role in relation to all listed companies, it has created a department specialized in its organizational structure to take over "control over the quality of the work of auditors", in addition to the other related tasks, such as following up Public proposals and disclosures, ensuring that they meet the requirements of the regulations, inspecting companies and requesting the necessary clarifications, and the implementation department referring any cases of breach of trust to the judicial authorities.
Names of the violators
In addition to publishing the names of violators, in accordance with the regulations on its website, the Authority affirmed its keenness to receive any complaints related to companies and members of its boards of directors and to investigate the limits of what its current law permits, and that it has already introduced the necessary amendments to its draft law to increase penalties for violators. And she hopes to adopt it from the concerned authorities
It indicated that it is continuously working to implement a clear plan, in coordination with strategic partners, to upgrade the stock market to "advanced", and that deals with the legislative, supervisory and regulatory level, in accordance with a legal framework that defines tasks and specializations and distributes them among the Authority, markets, companies and shareholders. The Authority is also working to achieve an ambitious level of its objectives related to providing a favorable legislative environment to obtain financing through the capital market, whether by converting companies to "public shareholding", offering their shares for public subscription and listing them in the state's financial markets, increasing the capital of these companies or issuing tools. Religion.
Supervision and control
The Authority also revealed that, based on the role entrusted to it, according to the legislation governing the capital market, it undertakes the task of supervising and controlling the stock market, using the latest technologies, such as the SMART Nasdaq OMX system, and also monitors and analyzes the companies ’commitment to full and proper disclosure through electronic disclosure programs. (XBRL), so that it verifies the speed of disclosure, the correctness of its content, and its accurate and fair disclosure to investors.
In a related context to its role in protecting shareholders, the Authority issued Resolution No. (32) of 2019, which requires the markets to place a (yellow) mark on the screens in front of companies that achieve accumulated losses, exceeding 20% or more of their capital. The mark will turn into (red) if the losses reach 50% of its capital, and when the accumulated losses reach 50% of the capital, the Authority continues to implement the legal procedures related to submitting and implementing financial restructuring plans.
Early this year, the Authority organized a mechanism for dealing with stumbling and suspended public shareholding companies, as some companies have suspended trading on their shares for some time, due to the failure to fulfill the continuing obligations of the listing and achieve losses.
The Authority, in coordination with the two markets, created a second screen for this type of companies for their return to trading, after presenting a restructuring plan that shows investors the problems and risks of these companies, and provides an opportunity for current shareholders to exit, instead of suspending trading on them. The joint committee between the authority, the markets and the concerned authorities is following up on the conditions of these companies, and the improvement in their financial position to bring them back to the first screen, according to the Watch List mechanism.
Receive complaints
The Securities and Commodities Authority confirmed receiving any complaints related to companies and members of their boards of directors for investigation. It also created a specialized financial investigation team, which was qualified in cooperation with the US Securities and Markets Authority for these purposes.
In the interest of the authority to strengthen its supervisory role vis-à-vis all listed companies, it has followed up on public proposals and disclosures, to ensure that they fulfill the requirements of the regulations, inspect companies and request the necessary clarifications, and impose legal penalties on violations, in addition to referring to the judicial authorities. The work of auditors.