The importance and necessity of applying the principles of governance in Sudan during the reconstruction phase ✍️ Professor: 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 – the shareholders – dealers – employees). Establish the rules and procedures necessary to make decisions related to the management of the company, set the objectives and the means available to achieve the company's objectives, monitor its performance and build on institutional work by establishing systems self-management, direction and control.
Therefore, corporate governance has become one of the most important topics raised in the economies of countries around the world, as it constitutes an important element in promoting economic and regulatory success and reform in light of globalization , of the opening of the economies of countries to each other. , and intense competition. Governance has also become a means of building confidence in the economy of any country and a proof of the existence of fair and transparent policies and rules to protect investors and brokers and an indicator of the level achieved by the management of the company in terms of professional commitment to the rules of good conduct. management, transparency and accountability and the existence of procedures to reduce corruption, thereby increasing the attractiveness of the economy for local and foreign investment and its ability to be competitive. Therefore, we are in Sudan at this stage and look forward to attracting 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 wouldn't have happened if that 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 faithful image of everything that is happening.
C. Independence: that is, there are no unnecessary influences or pressures on the work.
Dr.. Responsibility: that is, the ability to evaluate and appreciate the work of the board of directors and general management.
e. Accountability: Any responsibility to all interested parties in the business.
F. Justice: In other words, the rights of the company's different stakeholder groups must be respected.
not. Social responsibility: that is, considering the company as a good citizen.
Corporate governance is based on three pillars:
a. Ethical behavior: that is to say ensuring respect for behavior through respect for ethics and the 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 stakeholder roles: 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: establishing a system to manage risks, disclose and communicate 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. Appropriate disclosure is a powerful tool for influencing corporate behavior, protecting investors, attracting capital and maintaining trust in businesses. capital markets. Therefore, shareholders and potential investors need access to information that is curated, highly reliable, and comparable to other corresponding data, to help them evaluate management effectiveness and make information-based decisions sufficient regarding the valuation of the company. Insufficient or unclear information hampers the ability of securities markets to function and leads to misallocation of resources.
The governance system must include the need for timely and accurate disclosure of all data related to material corporate matters, including the financial condition, performance, ownership and oversight of the company. The disclosure must include, in addition to essential information, “any fact or information which must be prepared and disclosed in the accounting data in accordance with international accounting and auditing standards, the financial statements being the principal means of communication between the organization which prepare these data. and its user, because each party seeks to realize its own interests, which may conflict with the interests of others. conflicts with shareholders' objective due to increased cash flow such as incentives and rewards for management. Conflict may also arise between senior management (the board of directors) and the auditor. The latter reveals the maneuvers of management in the use of accounting methods and policies to manipulate accounting figures or hide certain important information from shareholders Accounting manipulation is defined as the ability to increase or decrease the net income presented in the statements financial statements in a deliberate manner, as well as working to create a different impression among users of financial statements. .
Teacher: Fikri Kabbashi Al-Amin Al-Arabi.
April 22, 2024 AD.
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