Code of corporate governance studied

MANAMA: The Bahrain Accountants Association conference on corporate governance will play a vital role in refining the final code covering the issue.

That was the message from Industry and Commerce Minister Dr Hassan Fakhro at the Developing a Corporate Governance Framework for Bahrain event yesterday.

"Although much debate, including an initial public survey, has already taken place in order to get to this point where we have a draft code. This conference is a further attempt at obtaining a broader spectrum of comment and input, that I am certain will prove to be an important element in refining this code," he said.

"The enormous amount of effort and dedication on the part of the members of the National Steering Committee should also not go unmentioned.

"The draft Corporate Governance Code for Bahrain is the product of a Corporate Governance Initiative, a joint project between the Ministry of Industry and Commerce and the Central Bank of Bahrain.

"It was no coincidence that at the same time the draft code was being developed, the ministry was also rewriting the Commercial Companies Law (CCL), with the assistance of Commercial Law Development Programme and many of the important corporate governance elements are underpinned by provisions in the new CCL, which is currently in the legislative process."

"The government of Bahrain, through its privatisation and divestment programme, and by removing itself from the productive processes, has positioned the private sector as the growth engine for the future," he said.

"The standard of living in the kingdom will ultimately depend on the effectiveness of the private sector in being competitive domestically, regionally and in global markets, and in creating a sustainable economy capable of generating employment for the growing indigenous population."

"Companies have the best chance at sustaining long-term growth, by taking an holistic view of their operations and the environment in which they exist, including their various stakeholders, and by looking to the future rather than concentrating on short-term profit in other words by adopting good corporate governance practices," he said.