Friday, 7 October 2011

UAE: Dubai: Corporate Governance Code for SMEs

The Department of Economic Development, in conjunction with Hawkamah, has published a corporate governance code for small and medium sized enterprises: see here (pdf). The code is voluntary and contains nine pillars or principles. Pillar one provides, for example, "Adopt a formal corporate governance framework outlining the roles of the key bodies such as partners, shareholders, board of directors and management". The Code is organised into the following sections: policies and procedures; transparency and shareholder relations; board of directors; control environment (internal controls, audit and risk management); stakeholder relations; and family governance.

For the purposes of the Code, an SME is defined as one with a turnover of less than 250 million UAE dirhams and with fewer than 250 employees.

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