Tag Archives: Corporate Governance

A case study on reporting and transparency of company results

In April of this year I talked about  some of the puzzling moves at Shuaa Capital, one of the better known investment banks in the region which is headquartered and listed in Dubai. Last month Shuaa released their H1 2017 financial results and there was quite a bit of commentary around these results. This commentary…

Your guide to handling ethical management issues

You have spent a lot of time honing your business ethics, governance and compliance skills, but time and again you find yourself in difficult situations and realise nobody taught you what to do. If I just described you, then this article is for you. Most of what is taught is with regards to how to…

Structuring formal boards and committees

A central pillar of corporate governance is to share authority. At the board level, directors have no individual authority unless the board assigns it to them. It is the board as a body that has authority. This authority is too often circumvented by the creation of an executive committee (exco) of the board. Although the…

Your guide to handling ethical management issues

You have spent a lot of time honing your business ethics, governance and compliance skills but time and again you find yourself in difficult situations and realise nobody taught you what to do. If I just described you, then this article is for you. Most of what is taught is with regards to how to…

Board drama, and crunching the numbers on oil

A few weeks ago I pointed out that Etisalat generated earnings of Dh0.97 per share and paid out Dh0.80 per share, which is a payout ratio of 82 per cent. I further pointed out that paying out such a high percentage of profits was consistent with a status quo strategy and inconsistent with an expansion…

Q1 results in the UAE mask less than stellar fundamentals

We have recently seen a flurry of reports regarding the financials for the first quarter of this year. Despite happy headlines, the fundamentals are not good. I will use some examples to show how to dig under the rosy announcements to get a better idea of the situation. Let’s start with the banking sector, the…

Some listed firms need a sensible talk on governance

In shocking news, this month Bahrain introduced common law for limited liability partnerships without having to create a free zone. All the legal protection without artificial costs. What a concept. Meanwhile, there are some decisions being made in listed companies – firms in which the public are investors – that do not seem to be…