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36 The Investor
One of the most significant goals of adopting The rules of governance encourage the
the rules of corporate governance is to application of a sound methodology
protect shareholders and separate powers in companies’ management through
of the executive management – which best practices of modern administrative
implement the business of a company – and methods.
a board of directors that prepare and review
the plans and policies for a company. 2. Lower costs for funding
Such rules of governance contribute to Applying rules of governance creates
the development of companies, increase an environment of trust and safety for
profitability and reduce risks. It also helps investors.
the board to ensure than the management Therefore, a company will be able to
team works for the company’s good and in receive the necessary sources of fund-
line with shareholder’s goals.
ing at the lowest cost in the market. It
The importance and benefits of corporate will attract investors for new issues of
governance for companies, in particular, various financial instruments offered by
and the financial sector, in general, are: the company.
1. Enhance administrative efficiency of 3. Enhance procedures of supervision and
companies audit
Issue 1 October 2017
