G for corporate governance

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G for Governance, which is precisely corporate management or governance, is a system of controls and procedures aimed at the proper and transparent management of a company. Corporate governance defines the governance structure, shareholder rights, and ethical standards that underpin the company's operations, making it a key element that drives all ESG initiatives .

Corporate governance is at the heart of building relationships with employees, investors or the board of directors. Maintaining a transparent system is key to building relationships and can be a kuwait email list competitive advantage, especially for suppliers. Companies that do not comply with corporate governance principles may be excluded from supply chains or other collaborations with counterparties that pay attention to sustainable management issues and are willing to comply with all ESG principles. These consequences can negatively impact financial results, directly affecting credit rating and access to capital.

Maintaining high-quality corporate governance can enhance a company's reputation, better manage risks, increase efficiency and even build relationships with a special group of customers, as well as brand . Quality corporate governance is reflected in factors such as professional management, the structure of the board of directors and management, and well-structured governance systems and processes.

What should the corporate governance report contain?

The regulations set out a series of information that a company must disclose. According to EU regulations and standards, the corporate governance report includes:

Information about the board, such as experience, qualifications, functions (divided into executive and non-executive), competence and term of office,
Board Remuneration Policy,
Percentage of independent members of the Board of Directors and Supervisory Board,
Percentage of women on management and supervisory boards,
Information on risk management and internal control practices,
Description of the participation and rights of shareholders, including minority shareholders
Furthermore, in addition to the applicable rules and regulations, WSE-listed companies are required to comply with the “ Code of Good Practice for WSE-Listed Companies 2021 ". This is a set of rules aimed at promoting effective governance, respect for shareholder rights and transparent communication with the market. According to the “comply or explain” principle, companies must comply with rules relating to: information policy and communication with investors, management and supervisory board, internal systems and functions, general meeting and shareholder relations, conflicts and transactions with related parties, and remuneration.