Question

Suggestions for protecting the rights of the stakeholders

Answer 1

The main suggestions for prtotecting the stakeholders is meeting and keep them well informed of the voting procedures and rules .Shareholders should be notified of the date of the general Assembly and the agenda before a readonable period from the time of meeting .Confirm the equal treatment of all shareholders .defined by the company for this matter.

Protection Of Shareholders’ Equity NIC should focus on certain rules and controls for the protection of shareholder’s equity and treating the same equally as well as protection of minority interests in terms of the following: • Protect the basic rights of shareholder in relation to the registration, assignment and transfer of ownership as well as the participation and voting in shareholders meetings and also participating in NIC’s dividends and obtaining regular information about the company. • Shareholders participate in the decisions mainly related to: - Amendments in NIC’s Memorandum & Articles of Association; - Amendments to the capital through offering new shares or offering certain shares under staff share purchase option system or share repurchases; and- Any extraordinary transactions such as the merger or sale of a substantial amount of NIC’s assets or assigning any affiliated companies. • Assure and ensure shareholders’ effective participation in General Assembly meetings and keep them well informed of the voting procedures and rules. Shareholders should be notified of the date of the General Assembly and the agenda The rules and procedures which would ensure the protection and acknowledgement of stakeholders’ right including the following: • The protection rights of the Board of Directors members and related parties conform to the various stakeholders’ parties, without any discrimination or preferential conditions. • The procedures that will be followed in case any party fails to fulfil any of its commitments, as well as the procedures to be followed for paying compensation shall be noted within the contracts held between the company and stakeholders. • A mechanism for compensating stakeholders in case of violation of their rights which are set by regulations and protected by contracts. • A mechanism demonstrating how the company builds strong relationships with clients and vendors and maintains confidentiality with respect to their information. • A mechanism for settling complaints or disputes which could arise between companies and stakeholders. • The company should set in place policies and internal charters which include a clear mechanism for awarding different kinds of contracts and deals either through tenders or various purchase orders. The mechanism should be fully disclosed.before a reasonable period from the time of meeting. • Confirm the equal treatment of all shareholders.