Corporate governance increases the confidence in the economy and raise the rate of investment

Corporate governance increases the confidence in the economy and raise the rate of investment

03/7/13  12: 00 am


Husseini counted one of the most important joints repairs Centre
Baghdad-Mostafa Hashemi
Economist Dr. Ahmad Husseini said there are external and internal determinants of corporate governance.
Governance is defined as the activity of the Department and to the decisions that define expectations, grant power, or verifying performance and consists either of a separate process or of the specific portion of a management or leadership processes and sometimes a group of people form a Government to manage these processes and systems.
Husseini said in a statement to (morning): external determinants include the overall climate for investment to economic activities in the State, such as laws, regulations and procedures governing the labour market and businesses; and the regulation of competition and anti-monopoly and bankruptcy, and the efficiency of a financial sector that provides funds for the projects and the efficiency of the regulatory agencies control of companies.

Associations and companies
There were some self-regulatory organizations, such as professional associations and companies in the stock market and private institutions in liberal professions such as law firms and investment advisory offices.
The internal determinants include the rules and instructions and foundations that define the style and format of decisions within the company as well as the distribution of powers and functions between the General Assembly and the Board of Directors and executives to reduce the conflict between the interests of the parties.
The governance ultimately lead to increased confidence in the national economy and deepen the labour market to mobilize savings and investment rates and work to ensure the rights of the minority and small investors.
To support and encourage the growth of the private sector, particularly its competitiveness and assist enterprises in obtaining financing projects and achieve profits and job creation.

Global institutions
Husseini has global institutions, such as the Organization for economic cooperation and development, and the Basel Committee on banking supervision, and the International Finance Corporation, to develop specific criteria for application governance, he noted that the Organization for economic cooperation and development has identified five criteria in 1999 and issued an amendment in 2004 and is a effective frameworks for corporate governance ensures the capacity, transparency and effectiveness of the markets, and clearly define the Division of responsibilities between the various regulatory and enforcement authorities, and preserve the rights of all shareholders and equality between all contributors, In terms of votes at the General Assembly in addition to the right to see and know everything about the transactions, citing a legal mechanism allowing shareholders participation in effective control of the company and their access to the requested information, i.e. bankers, workers and bond holders and customers.
As well as the application of disclosure and transparency in time for all the company's business including financial and performance status and ownership, which is a fair disclosure to all shareholders in addition to defining the functions and duties of the Governing Council and the method selected and their functions and their role in overseeing the management of the company.

The Basel criteria
Counsel confirmed that the Basel Committee developed in 1999 instructions and guidelines on corporate governance in banking and financial institutions was to develop codes of honor among the institutions to achieve good behavior applied between these institutions. Development strategy of the company to the participation and contribution of individuals. In addition to identifying and allocating responsibilities and decision-making among members of the Council. As well as a system that includes internal and external audit functions and separate Department, along with the formulas and mechanisms to show the type and form of cooperation between the Board of Directors and the Auditors. And find some kind of oversight of risks (such as major shareholders and top management) and the application of Justice and equality in the distribution of physical and administrative incentives between managers and/or staff whether material incentives or promotions or administrative. and ensure the provision of appropriate information influx. Husseini that in 2003 the International Finance Corporation of the World Bank rules and principles and standards to support financial and administrative governance


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