IFRS: Adopting Global Standards

The SEC has lately allowed foreign listed companies to submit their finaical statements using the IFRS WOTHOUT reconciliation to US GAAP.

Corporate boards a family affair

Asa Fitch

• Last Updated: May 19. 2008 11:22PM UAE / May 19. 2008 7:22PM GMT

Of companies listed on the Abu Dhabi Securities Exchange, close to 40 per cent of board seats are held by 15 families. Andrew Parsons / The National

Prominent families still dominate corporate boards across the UAE and the GCC, despite efforts in recent years to modernise capital markets and open up economies in the region, a survey released yesterday has found.

The concern is that this could turn away foreign investors who demand board independence and transparency.

The report, “Power matters: a survey of GCC boards”, compiled jointly by the Abu Dhabi-based merchant bank The National Investor (TNI) and Hawkamah, a regional corporate governance institute, analysed 582 public company boards in the GCC, comprising a total of 4,254 seats.

Boards of directors make decisions about the appointment of key company executives and mediate between shareholders and management. Seats on boards are limited – the average size in the UAE is around seven people, according to the survey – and individual members can therefore exert considerable influence.

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