Representation on the Companies’ Boards of Directors
The Social
Security Investment Fund implements best practices of good governance in its
work and investments, including its investments in the companies in which SSC
invests.
Based on
the Social Security law and the governing regulations, the Fund applies a
comprehensive system to monitor the companies’ performance, maintain investment
revenue and stakeholders’ rights according to clear criteria, which also accounts
for investment risks.
A-Reporting System:
Representatives
are required to quarterly report the company’s financial performance,
effectiveness of the internal control, compliance to corporate governance
practices, efficiency of the company’s executive management, and other matters
that could have a financial and / or legal impact on the company’s business and
its sustainability.
In
addition, the Fund periodically meets with its representatives to review
companies' performance, achievements and future plans.
B- Corporate Governance Manual:
To reflect
its commitment to adopt the good governance best practices, in 2019 the Fund originated corporate
governance manual that regulates the relationship between the Fund, as a
competent authority to manage the representation process, and the representatives
on the companies’ boards. The Manual identifies the selection and
classification criteria for candidate representatives, including their educational degrees,
technical knowledge, and practical experiences especially in financial and
administrative fields. The Manual also sets the assessment criteria of those representatives
to ensure fulfilling their duties.
At the
beginning of 2021, the Fund issued an updated version of the manual to further improve the
efficiency of the representation process and improve the representatives’
selection criteria.