Corporate Governance and Shariah within SEDCO
Corporate governance is an important strength of the SEDCO Group. It is driven by the scale, scope and complexity of SEDCO's businesses as well as the shareholders vision of a professional, transparent and ethical organization. It differentiates us from many of our peers and has been critical in building our reputation as a capable, ethical and responsive business group.
- The SEDCO corporate governance manual was initially developed in June 2007.The manual is based on four main principles: fairness, transparency, accountability and responsibility. It contains:
- 1. Board of Directors bylaws
- 2. General corporate policies
- 3. Code of business ethics
- 4. Appointment of SEDCO employees as directors
- 5. Anti-money-laundering policies
- 6. Family relations of SEDCO related and non-SEDCO related entities
Following the implementation of the Holding Company structure in 2010, the corporate governance manual was updated and improved to account for changes in structure and strategy. This included the relationship and responsibilities of operating companies and boards, authority of the Holding company on important matters, establishment of new board and management committees to facilitate rapid and effective decision making etc. Extensive training was provided to senior management and board members to ensure the corporate governance was well understood and effectively implemented.
Corporate governance has paved the way for future growth, including the ability to attract investors, both locally and internationally. It has improved SEDCO's access to capital and financial markets. It has provided grounds for a smooth inter-generational transfer of wealth and a divestment of family assets. Furthermore, it has strengthened the confidence of shareholders in the management, as it has minimized the chances for conflicts of interest to arise, and required better systems of internal control, thus leading to greater accountability and improved profit margins. It has also laid the ground for a clear separation between management and shareholders.
The corporate governance process has enabled SEDCO to distinguish itself from many other regional family businesses, whose shareholders are frequently involved in the management of day-to-day activities. It has been recognized by the Institute of Directors as best-in-class for the region.
Adherence to Shariah principles and clear corporate governance have proven of great value for the SEDCO Group in navigating the global financial turmoil.