Corporate Governance is considered one of the most important subjects for all local and international companies and has been a top priority due to financial crisis faced by various entities in recent past.
The regulations and rules of Corporate Governance focus on minimizing the use of management authority in aspects other than the interests of shareholders. It activates the role of the Board of Directors, enhances internal control, follows up on the implementation of strategies, and determines the roles and responsibility of shareholders, the Board of Directors, executive management and stakeholders, as well as confirming the importance of transparency and disclosure.
Corporate Governance is a system through which the rights and responsibilities of different parties are determined, such as the Board of Directors, managers, shareholders and other stakeholders in the Company. Corporate Governance is also defined as a function of relations between the Company’s management, Board of Directors, shareholders and all concerned parties; it is the structure through which the Company’s objectives are determined, performance and results are monitored successfully as a result of controlled authority. It is also the system through which all the necessary incentives are provided to the Board of Directors and senior executive management in their pursuit of achieving the agreed upon objectives for serving the best interests of the Company and its shareholders in an efficient and effective manner.
Therefore, Advanced Petrochemical Company, as represented by its Board of Directors and executive management, is committed to develop the highest professional standards in the Company complying with the norms and principles hereof and shall apply to all the business of the Company.
This Regulation also includes the provisions and rules of Corporate Governance issued by the Saudi Capital Market Authority and Company’s Management.
This Regulation guarantees achieving and applying the following administrative Corporate Governance principles:
- Protection of shareholders rights
- Disclosure and transparency
- Responsibilities of Board of Directors
- Conflict of Interest
- Social Responsibility