The corporate governance culture is rooted in all areas and operations carried out by the Mobile Telecommunications Company KSCP (Zain), ensuring that the company adheres to the best standards and practices of governance in all its operations through a set of internal policies and procedures. These policies and charters depend on the applicable laws and regulations within the State of Kuwait, in addition to international standards. Through these practices the company seeks to raise its professional and intellectual level, in a manner that maximizes shareholder value and ensures the protection of the rights of other stakeholders.
The company’s strategy is based on the vision of the Board of Directors. The Board consists of nine seasoned members with great experiences in various industries and in markets extending from the Middle East to Europe and Africa. The Board is responsible for defining the strategic direction of the company through approving the strategy, vision, mission, business plans, capital structure, financial goals, organizational structure, policies and other processes and procedures of a fundamental nature.
The Board fosters a culture of compliance and commitment to corporate governance principles through internal policies and procedures. The internal guidelines and measures are based on local laws and regulations issued by regulatory authorities in Kuwait, the most prominent of which are the guidelines of the Capital Markets Authority, the laws of the Ministry of Commerce and Industry (MOCI), and the instructions of Kuwait Boursa in addition to other authorities.
The performance of the company reflects its management execution of the strategy; and the company’s Board of Directors depends on the principles of corporate governance to achieve the best results and maximize the rights of stakeholders, aiming to be more attractive to investors. The board of directors is keen to ensure that the responsibility of adhering to corporate governance best practices is spread in a way that guarantees a strategic match between the company’s business goals with these principles.
The primary goal of corporate governance is to protect the rights of shareholders and other stakeholders by maximizing long-term value. The Board is committed to creating long-term benefits for stakeholders while ensuring that the company’s operations are implemented in an ethical, legal, and responsible manner towards the environment and society. The company’s policies ensure the implementation of principles of sound governance, such as equality in dealing with internal and external stakeholders and establishing a transparent relationship with shareholders by developing processes and standards to facilitate compliance.
The rapidly changing telecommunications industry requires making quick and strategic decisions to keep up with competition. It is an expected requirement that the company’s Board and executive management have a high standard and diverse experience. The value of corporate governance is essential in achieving a relationship with shareholders and stakeholders based on trust and transparency. The company’s corporate governance policy aims to create a healthy balance between the interests of shareholders and the responsibility of the Board and executive management and how they can affect operations.
The Board and the executive management team are committed to implementing and maintaining the corporate governance structure, believing that sound corporate governance adds value to the business and boosts the confidence of stakeholders. The following corporate governance report is based on the principles and guidelines of corporate governance issued by the Capital Markets Authority (CMA) in the State of Kuwait for the year ending in 31 December 2019.
This corporate governance report was approved by the Board of Directors.