Board Member Majid Jafar says describes “a permanent process of improvement”
Majid Jafar, a Board Member of Dana Gas PJSC, addressing the “Board of Directors 2012” conference yesterday, emphasised the importance of best practice corporate governance at the company, as he described the journey taken by the Board of Directors since the formation of Dana Gas in 2005, which has led to the company being recognised as a leader in this area by the International
Finance Corporation (IFC) of the World Bank Group.
Mr. Jafar, who is also CEO of Crescent Petroleum and Vice-Chairman of the Crescent Group, described how the Board of Dana Gas, which is the region’s leading private sector natural gas company, and is listed on the Abu Dhabi stock exchange, was carefully designed from the inception of the company, to ensure the right mix of skills and nationalities, as well as the right balance between executive directors, major shareholders, and independent directors.
He also highlighted the emphasis placed by the company on setting high standards for corporate governance while respecting regional culture, and in seeking external international advice. This has led to Dana Gas achieving awards for good corporate governance by the regulatory bodies, and being named a Best Practice company for the Middle East region by the International Finance Corporation (IFC), the private sector arm of the World Bank. Majid
Jafar served as the first Chairman of the Corporate Governance Committee of Dana Gas, and is an Accredited Director of the Institute of Directors – IoD Mudara.
“Realizing best Corporate Governance practices was essential for building a strong brand in the international Oil and Gas sector”, Jafar told the conference attendees, adding: “The Dana Gas Board is committed to ensuring long term value for its shareholders, and strongly believes in the role of proper Corporate Governance in the realization of growth – and defining appropriate strategic objectives serving such growth”.
Mr. Jafar explained to the audience the developments undertaken by the board over the last couple of years, which included the establishment of an internal Control Department and the hiring of an “Internal Control Manager” at Group Level – in compliance with the Security and Commodities Authority (SCA)’s regulations thus strengthening the control environment and establishing the foundations of “Internal Control”. Other achievements he highlighted were implementing the Annual Audit Plan, starting Internal Audit Activities, and in 2010 approving and communicating the “Code of Insiders Dealings” – followed by its rollout in 2011 alongside the implementation of the Internal Control.
“It is this parallel engagement on all aspects of Best Practice in corporate governance which led Dana Gas to be featured in three pages in the IFC’s 2010 Corporate Governance Success Stories magazine”, Mr. Jafar emphasized while reiterating the importance of seeing “governance as a permanent process and not a whim or a public relations initiative”.
The Board of Directors 2012 conference is being held at the Media Rotana Hotel on the 24th and 25th of September, and brings together a large number of senior management officers and directors from across the region to discuss various topics ranging from board governance and effectiveness, board composition, director roles and accountabilities, board structures, board delivery, effective board dynamics and board evaluation and renewal.