By Moneer Al-Omari
In
a symposium held on Sunday, the Yemen Polling Center announced the
results of a survey on corporate governance in Yemen. The symposium was
attended by a large number of businessmen, economists, experts and
representatives of companies and local and Arab media outlets.
The sample covered five Yemeni provinces, mostly in Sana’a, because most big and medium-sized companies are headquartered or have branches there. Other provinces are respectively Aden, Taiz, Hadramout and Al-Hodeidah.
The study was conducted by YPC in collaboration with the Center for International Private Enterprises (CIPE) and Yemeni Businessmen Club (YBC) and targeted 200 major and medium-sized companies.
According to the survey results, the levels of transparency and disclosure by companies of Yemen remain very low, as 55 percent of the targeted companies do not disclose the financial position, while just 37 percent disclose information about their profits.
The telecommunications sector hit the highest level of transparency (100 percent) as the four telecommunication companies issue regular and annual reports about their financial positions and 75 percent of these companies name their senior shareholders.
Telecommunications companies ranked first, sometimes at 100 percent, as to disclosing information about their financial positions, profits and senior shareholders as well as their strategies and policies.
About 25 percent disclose information about their companies through internal periodic reports, 15.9 percent disclose information through general assembly meetings, 15.7 disclose information through the web sites of their companies, 4.4 percent through media outlets, 3.7 percent through the company’s bulletin or newsletter while, 2.2 percent disclose information through notice boards.
Nevertheless, the publication means remains an important variable and a criterion for transparency levels. Moreover, the percentage of disclosure increases when the access to information is legally-binding as is the case with banks and joint stock companies.
In over 55 percent of the targeted companies, the board of directors is not independent from the executive administration. Just 17.5 percent of the targeted companies have independent members in their board of directors and 15 percent have a representative for workers in their administrative departments.
Voting for or against a certain decision or strategy in 51.8 companies is made according to the volume of shares held. However, Yemeni companies recorded high percentages in matters relating to shareholders’ rights like the participation and voting during the general assembly meetings, approving distribution of profits and holding the board of directors into account.
In just 44 percent of companies, the board of directors is independent from the executive management. Similarly, the executive/general manager is a member of the board of directors in 63.6 companies whose board is independent from the executive management because he is either a partner or the company’s owner.
Though the effective laws obligate some sectors to have an independent member (e.g. universities law), only 17.5 percent of the targeted companies have such a member in their board of directors.
Excluding the non-joint stock companies, about 63 percent of companies have representatives for the shareholders. However, in 35.5 percent of the interviewed companies, the board of directors has the capacity to change the bylaws without getting the consent of shareholders.
In 75.5 percent of the targeted companies, the board of directors supervise and oversees decisions on risks and 80.5 percent of companies have regulations and rules that decide on the authorities and tasks of the board of directors
Only 50.5 percent of the targeted companies revealed that their boards of directors hold regular meetings. Again, 10 percent of companies have their board of directors hold their meetings regularly without the attendance of the executive management, while 26 percent involve the executive management
About 80 percent of companies revealed that the board of directors can have regular access to information about the company’s activities and its position at a certain time and in 80.5 percent of the targeted companies a member of the board of directors can check the auditors’ reports.
Few companies, about 26 percent, usually train their new members of the board to identify them with their tasks while 35.5 percent do that sometimes.
The sample covered five Yemeni provinces, mostly in Sana’a, because most big and medium-sized companies are headquartered or have branches there. Other provinces are respectively Aden, Taiz, Hadramout and Al-Hodeidah.
The study was conducted by YPC in collaboration with the Center for International Private Enterprises (CIPE) and Yemeni Businessmen Club (YBC) and targeted 200 major and medium-sized companies.
According to the survey results, the levels of transparency and disclosure by companies of Yemen remain very low, as 55 percent of the targeted companies do not disclose the financial position, while just 37 percent disclose information about their profits.
The telecommunications sector hit the highest level of transparency (100 percent) as the four telecommunication companies issue regular and annual reports about their financial positions and 75 percent of these companies name their senior shareholders.
Telecommunications companies ranked first, sometimes at 100 percent, as to disclosing information about their financial positions, profits and senior shareholders as well as their strategies and policies.
About 25 percent disclose information about their companies through internal periodic reports, 15.9 percent disclose information through general assembly meetings, 15.7 disclose information through the web sites of their companies, 4.4 percent through media outlets, 3.7 percent through the company’s bulletin or newsletter while, 2.2 percent disclose information through notice boards.
Nevertheless, the publication means remains an important variable and a criterion for transparency levels. Moreover, the percentage of disclosure increases when the access to information is legally-binding as is the case with banks and joint stock companies.
In over 55 percent of the targeted companies, the board of directors is not independent from the executive administration. Just 17.5 percent of the targeted companies have independent members in their board of directors and 15 percent have a representative for workers in their administrative departments.
Voting for or against a certain decision or strategy in 51.8 companies is made according to the volume of shares held. However, Yemeni companies recorded high percentages in matters relating to shareholders’ rights like the participation and voting during the general assembly meetings, approving distribution of profits and holding the board of directors into account.
In just 44 percent of companies, the board of directors is independent from the executive management. Similarly, the executive/general manager is a member of the board of directors in 63.6 companies whose board is independent from the executive management because he is either a partner or the company’s owner.
Though the effective laws obligate some sectors to have an independent member (e.g. universities law), only 17.5 percent of the targeted companies have such a member in their board of directors.
Excluding the non-joint stock companies, about 63 percent of companies have representatives for the shareholders. However, in 35.5 percent of the interviewed companies, the board of directors has the capacity to change the bylaws without getting the consent of shareholders.
In 75.5 percent of the targeted companies, the board of directors supervise and oversees decisions on risks and 80.5 percent of companies have regulations and rules that decide on the authorities and tasks of the board of directors
Only 50.5 percent of the targeted companies revealed that their boards of directors hold regular meetings. Again, 10 percent of companies have their board of directors hold their meetings regularly without the attendance of the executive management, while 26 percent involve the executive management
About 80 percent of companies revealed that the board of directors can have regular access to information about the company’s activities and its position at a certain time and in 80.5 percent of the targeted companies a member of the board of directors can check the auditors’ reports.
Few companies, about 26 percent, usually train their new members of the board to identify them with their tasks while 35.5 percent do that sometimes.
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