In a workshop in the Asharqia Chamber
Governance Adviser: Layoffs of departments and councils are more rewarding than layoffs.
The administrative and financial consultant and member of the boards and auditing committees of many listed and closed companies, Dr. Jassim Shahin Al-Rumaihi, stressed the importance of the CEO in implementing governance, describing it as the company's machinery and its main engine, noting that the demobilization of departments and boards that did not achieve success is more feasible than layoffs Small employees, getting rid of these departments and councils reduces costs and pumps new, uncorrupted blood in companies, indicating that the basic joint activities of the concept of governance revolve between policies, legislation, organizational structures, control systems and the formation of the Board of Directors.
This came during the workshop organized by the Asharqia Chamber, yesterday, Thursday, December 26, 2019, with the aim of providing advice to its business owners on the main dimensions included in the governance system and the frameworks and tools needed to follow its procedures, in what the governance represents from a primary source to enhance competitiveness and achieve growth and sustainability across generations.
Al-Rumaihi reviewed the factors affecting the mechanisms of the governance system, starting from the legal framework of the company, the industry to which the company belongs, and passing through the current financial position of the company and the impact of the future economy, and ending with the relationship between the companies with the holding company and the prevailing culture, noting that there are four reasons behind the current controversy On governance and the importance of adhering to its provisions, namely: mismanagement, the increasing influence of the public, globalization of capital markets, and developments in information technology.
Al-Rumaihi said that governance is the rules for leading the company and directing it, and it includes mechanisms to regulate the various relationships between the board of directors, executives, shareholders, and stakeholders, by setting special rules and procedures to facilitate the decision-making process and give the character of transparency and credibility with a view to protecting the rights of shareholders and stakeholders and achieving justice, competitiveness and transparency in the market and business environment.
Al-Rumaihi explained that corporate governance or corporate governance is a system that directs and controls the companies ’actions by describing and clarifying rights and duties between the various parties in the companies, whether the board of directors, shareholders, dealers or employees, as well as setting the rules and procedures for making decisions related to the management of the company, as well as setting the goals and means available to achieve the goals of the company and monitor its performance, and finally rely on institutional work by setting up self-management, direction and control systems.
