The Commercial Real Estate Company is the first and leading company in the implementation of the governance standards of “Good Governance” in Kuwait. The Board of Directors has taken upon itself the responsibility of complying with the governance standards which were announced at the Ordinary General Assembly for the financial year ending 31/12/2011, through the application of best practices and a package of policies, procedures and mechanisms. The Board of Directors, consisting of eight members (including two independent members), adopted the organizational structure and governance guide which defines the responsibilities, powers and channels of communication between different administrative levels, and also regulates the relationship between shareholders, board of directors, executive management and stakeholders.
Also, several committees emanating from the Board of Directors have been formed to follow up the application of best practices. The governance guide outlined the composition, functions, powers and responsibilities of these committees and their working mechanism, as well as the evaluation of the committees, the executive management, the board of directors, the determination of shareholders’ rights, the development of ethical business codes and organizational policies of the Company. The Board of Directors of the Company has also set up a system of financial, administrative and operational powers that define the powers of the Executive Management, the committees emanating from the Board of Directors and the Board of Directors.
In 2020, the Company committed itself to implementing all standards of governance in accordance with best practices and submitted the reports to the regulatory authorities on the specified dates. The Governance Committee and the Board of Directors have also supervised the implementation process through periodic reports submitted to the Committee and the Board. The Board did not witness any deviations from the adopted policies and rules or regulatory directives on governance applications.