The importance and necessity of applying the principles of governance in Sudan after the end of this damn war ✍️ Professor: Fikri Kabbashi, Al-Amin Al-Arabi
Prof. Dr. Fikri Kabbashi, Al-Amin Al-Arabi.
The Organization for Economic Cooperation and Development has defined governance as the system that guides and controls the actions of companies by describing and clarifying the rights and duties between the different stakeholders of companies (the board of directors – shareholders – dealers – employees). Establish the rules and procedures necessary to make decisions related to the management of the company, set the objectives and means available to achieve the objectives of the company, monitor its performance and rely on institutional work by establishing systems of self-management, orientation and control.
Therefore, corporate governance has become one of the most important topics raised in the economies of countries around the world, as it is an important element in promoting success and economic and regulatory reform in light of globalization, the opening of countries' economies to each other. , and intense competition. Governance has also become a means of building confidence in the economy of any country and evidence of the existence of fair and transparent policies and rules to protect investors and brokers and an indicator of the level achieved by the company's management in terms of professional commitment to the rules of good conduct. management, transparency and accountability and the existence of procedures to reduce corruption, thus increasing the attractiveness of the economy for local and foreign investment and its competitiveness. Therefore, we in Sudan are at this stage and are eager to attract international investment as a country. The primary objective is to exploit the available material resources. After announcing the end of economic isolation, those responsible for the file must prepare the climate by adopting and strictly applying the principles of governance. This would not have happened if this had been the case. From the adoption of these principles and foundations, the term governance includes the following characteristics:
a. Discipline: that is, following appropriate and correct moral behavior.
B. Transparency: that is, providing a true picture of everything that is happening.
C. Independence: that is, there are no unnecessary influences or pressures for the work.
Dr. Responsibility: that is, the ability to evaluate and assess the work of the board of directors and general management.
e. Liability: Any liability to all interested parties in the business.
F. Justice: In other words, the rights of the different stakeholder groups in the company must be respected.
n. Social responsibility: that is, considering the company as a good citizen.
Corporate governance is based on three pillars:
a. Ethical behavior: that is, ensuring compliance with behaviors through respect for ethics and rules of good professional conduct, balance in achieving the interests of all parties associated with the company and transparency in the presentation of financial information.
B. Activate the roles of stakeholders: such as general supervisory bodies “Capital Market Authority – Ministry of Economy – Stock Exchange – Central Bank” and direct supervisory and control parties “Shareholders – Board of Directors – Audit Committee – Internal Auditors – External Auditors” and other parties associated with the company “Suppliers – “Customers – Consumers – Depositors – Lenders”.
C. Risk management: by establishing a risk management system, disclosing and communicating risks to users and stakeholders.
Robust disclosure systems are an essential feature of market-based corporate monitoring methods and are of great importance in helping shareholders exercise their rights. Adequate disclosure is a powerful tool for influencing corporate behavior, protecting investors, attracting capital, and maintaining confidence in companies. capital markets. Therefore, shareholders and potential investors need access to organized, highly reliable, and comparable information to help them assess management effectiveness and make informed decisions about the valuation of the company. Insufficient or unclear information hinders the ability of securities markets to function and leads to misallocation of resources.
The governance system should include the need for timely and accurate disclosure of all data related to material matters of the company, including the financial position, performance, ownership and oversight of the company. Disclosure should include, in addition to essential information, “any fact or information that the accounting data should be prepared and disclosed in accordance with international accounting and auditing standards, the financial statements being the principal means of communication between the body that prepares such data.” and its user, as each party seeks to achieve its own interests, which may conflict with the interests of others. conflicts with the shareholders' objective due to increased cash flow such as incentives and rewards for management. A conflict may also arise between senior management “the board of directors” and the auditor. The latter reveals management's maneuvers in the use of accounting methods and policies. manipulating accounting figures or hiding certain important information from shareholders Accounting manipulation is defined as the ability to increase or decrease the net income presented in the financial statements deliberately, as well as working to create a different impression among users of the financial statements.
