MENAOECD Investment Programme

1

• MENA-OECD Investment Programme
• National Investment Reform Agenda Workshop for
  the Hashemite Kingdome of Jordan
• Monday 19th of June, 2006
• Dead Sea- Jordan
• Session II Corporate Governance Code
• Omar M.H. Aljazy, PhD MCIArb
• Vice-Chairman
• Jordanian Corporate Governance Association

2
Those who capture the movement and understand
that complying with sound Corporate Governance
principles in the private sector in order to
generate wealth are those who will benefit.

• An enabling environment would be the key factor
  in allowing for the implementation of Corporate
  Governance.

3

• The five stages for adopting Corporate
  Governance practices
• Raising Awareness
• Developing National Codes
• Monitoring Implementation
• Training for New Responsibilities
• Institutionalizing Corporate Governance
• It was realized that the legal environment
  in Jordan has not substantially incorporated
  reliable solid Corporate Governance practice.

4

• Jordans assessment on Corporate Governance
  covered primarily
• The rights of shareholders
• The equitable treatment of shareholders
• Disclosure, transparency, and
• The responsibilities of the board.

5

• Indeed the OECD principles have been used as a
  bench mark in many national and international
  initiatives ,yet there is no single model for
  Corporate Governance.

6

• Corporate Governance is endorsed through codes
  not laws
• Laws set Minimum standards.
• Codes are faster to develop.
• Codes are more flexible to implement.
• While, laws are Compulsory, codes are voluntary.
• Codes are easier to review and modify.
• Codes are evolutionary.
• Codes are easier to train people.
• Codes are more accessible and easier to
  comprehend.

7

• The growing global consensus on what
  constitutes high standards of Corporate
  Governance includes the following
• Transparent ownership
• Shareholders' rights
• Institutional investors
• General shareholder meetings
• Anti-takeover defenses
• Board Size
• Non-executive directors
• Independent directors
• Written board guidelines
• Board Committees
• International Financial Reporting Standards
  (IFRS)
• Independent audits
• Disclosure
• Stakeholders

8

• Corporate Governance ensures sustainability for
  the long run and opens the door to economic
  growth necessary for eradicating poverty.
• The importance of monitoring and evaluation
  should not be underestimated.