Corporate Governance Framework
Mumtalakat operates in compliance with the Bahrain Code of Corporate Governance (the “Code”), and strongly encourages its portfolio companies to operate in compliance with the Code.
A principal purpose of the Code is to define the relationship between the board of directors, the managers, and the shareholders of a company to ensure transparency, accountability, fairness and responsibility in firms of all sizes. Although the Code currently applies to listed companies, Mumtalakat encourages its portfolio companies, whether listed or unlisted, to operate in compliance with the Code.
As part of Mumtalakat’s commitment to achieve the highest standards of corporate governance, and in addition to operating in compliance with the Code, Mumtalakat provides its representatives sitting on the boards of its portfolio companies with a “Directors’ Handbook”, a reference guide that lays out the most important concepts and expectations for the directors.
The Handbook also sets out the definitions of key corporate governance processes, and the roles and responsibilities of the shareholders, nominee directors and executive management of the portfolio companies.
Mumtalakat is subject to regular audits of its operations from an external auditor, an internal auditor, and the National Audit Offices of the Kingdom of Bahrain.
Underpinning Mumtalakat’s commitment to implement sound corporate governance practices, Mumtalakat has opted for the voluntary adoption of the Generally Accepted Principles and Practices of Sovereign Wealth Funds (the Santiago Principles). The guiding purpose of the Principles is to establish transparent and sound governance structures that promote appropriate governance and accountability and sound conduct of investment practices by sovereign wealth funds.