GIG Egypt - Corporate Governance

What is Corporate Governance?

Corporate governance is the system of rules, practices, and processes by which the company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.

GIG Egypt is one of the very first companies in Egypt applying the governance framework according to the Egyptian code.

The Egyptian corporate governance code

It is considered as a general framework that encompasses a set of rules of corporate governance based on international and regional best practices. In addition, the code guides legislators in enacting the regulatory legislation and instructions.

The role of the state, legislative and regulatory authorities

Regulatory bodies play a pivotal role in adopting a clear approach for a gradual and objective development of the regulatory system of corporate governance, that allows for the application of the underlying principles outlined in this code on the full spectrum of companies in Egypt, according to their respective size, complexity and nature of business, while assisting and supporting the entities engaged in promoting and spreading public awareness of governance culture and applications.

Objectives and benefits of implementing corporate governance

Corporate governance protects the rights of the shareholders, stakeholders as well as the environment in which the company operates, improves companies’ efficient operation and strengthens control on their performance, facilitates obtaining the necessary funding and reduces capital cost, mitigates the impact of risks, seek to avoid conflict of interests in respect of transactions and assists the institutionalization of family owned firms.

Corporate governance is a culture that has to be inherent in the company’s core, and should be adopted as its vision and long term strategy that has to be implemented on an ongoing basis not only on the short run.