The Hawkamah Journal issue 01/2013 | Page 20

THE NINE PILLARS Pillar 1: Adopt a formal corporate governance framework outlining the roles of the key bodies such as partners, shareholders, board of directors and management. should be responsible for monitoring and evaluating Step 1: Step 3: evaluation Step 2: Step 4: specifying matters reserved for shareholders and the Pillar 2: Conduct a succession planning process. Step 1: process and regularly review the Pillar 6: Maintain credible books of accounts, which are annually audited by an external auditor. Step 1: Companies should follow credible accounting Step 2: Companies should have a rigorous succession planning methodology in place providing for both planned Step 2: Companies should formally evaluate the Pillar 3: Establish a timely, open and transparent Step 1: companies should establish clear lines of communication Step 2: policies on preserving the independence of the audit Pillar 7: Set up an internal control framework in place and conduct a regular review of risk. Step 1: Companies should establish a formal process Pillar 4: Endeavor to set up a formal Board of Directors to accompany the growth of the company. management should adopt formal control mechanisms Step 2: Step 1: Step 3: Companies should consider establishing an Pillar 8: Recognize the needs of stakeholders. Step 2: Step Step 1: 3: Companies should consider appointing Step 2: Targets relating to the management of Step 4: Pillar 5: Develop a clear mandate for its Board of Directors to oversee the operational performance of the business as well as evaluating and improving business strategies. Step 1: Pillar 9: Formulate a framework setting out the family’s relationship with the business. Step 1: setting out the family’s vision and policies regulating Step 2: procedures should be established to facilitate effective communication and coordination between family Step 2: 18