Based on the objectives pursued by the Capital Market Authority in the Kingdom of Saudi Arabia—namely, regulating securities activity characterized by fairness, competitiveness, and transparency, educating the public about securities activity and the associated benefits, risks, and obligations, encouraging development while providing protection for those involved in securities activity, and reducing typical risks—facilities have adopted a policy of full disclosure. This policy aims to achieve fairness and transparency, prevent conflicts of interest, and avoid the exploitation of internal information.
Marafiq has implemented corporate governance rules that best protect and balance the interests of the company's management, shareholders, and other stakeholders. The primary goal of applying corporate governance rules is to ensure alignment with shareholders’ objectives, thereby enhancing investors’ confidence in the company’s efficient performance and its ability to confront crises.
The corporate governance rules applied in Marafiq regulate the decision-making methodology within the company and promote transparency and credibility. One of the most important goals of adopting corporate governance rules is to protect shareholders by separating powers between the executive management that runs the company’s business and the Board of Directors, which prepares, and reviews plans and policies. This separation provides reassurance, enhances confidence, and enables effective monitoring by shareholders and stakeholders.
The rules of good corporate governance, upon which the entire company structure is built, are based on documenting the following:
Ethical Behavior: Ensures adherence to ethics and professional conduct rules, balances the interests of all parties related to the company, and promotes transparency when presenting financial and non-financial information.
Monitoring and Accountability: Develops an integrated system to detect deviations and violations, emphasizes the importance of stakeholder roles in monitoring the company, and ensures that disclosure and transparency are essential for protecting stakeholder rights.
Sound Administrative Organization: Ensures the distribution of powers and responsibilities, separates competencies, and establishes a system of incentives and rewards through performance evaluations of both managers and employees.
The Importance of Governance in Marafiq and Its Subsidiaries:
Enhancing Administrative Efficiency
The governance rules in Marafiq encourage the correct approach to corporate management by applying best practices in modern administrative methods. This contributes to the company's growth, increases profitability, and reduces risks. Good governance practices involve a board of directors and a team of experienced managers, supported by specialized committees, to ensure the company’s operations align with shareholders’ objectives.
Strengthening Supervisory and Auditing Procedures
Marafiq practices governance through precise mechanisms to control the actions and behaviors of its personnel, ensuring compliance with laws and internal policies. This self-monitoring reduces risks.
Supporting the Company’s Social Role
Governance rules encourage Marafiq to play a more effective social role, expanding its activities to include research and studies benefiting the company, society, the environment, and the economy, while considering the three pillars of sustainable development: economic growth, social progress, and environmental protection.
Promoting Justice, Transparency, and Fair Treatment
Governance rules aim to promote justice, transparency, and fair treatment for all parties, including shareholders, investors, and other stakeholders.
Reducing Conflicts of Interest
The company is motivated to follow proper practices in its dealings with all relevant parties, both internal and external, to avoid improper practices that may lead to conflicts of interest and financial problems.
The Governance and Compliance Department at Marafiq is organized to cover governance, compliance, and risk management, employing highly qualified individuals with extensive experience. The average experience of the team exceeds ten years, with a cumulative total exceeding 80 years. This expertise is employed in a structured hierarchical system, established under the supervision of experts and consultants specialized in this field.
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