THE BANK

Corporate Governance

Corporate Governance principles provide the system by which a bank is directed and managed. They influence how the performance of a bank is optimized; how the objectives of a bank are set and achieved; and how risks are assessed and managed.

Addax Bank has developed a sound corporate governance framework through the creation of a Corporate Governance Manual to guide the Board of Directors, senior management, and the departmental heads in adhering to widely accepted corporate governance guidelines, and ensuring accountability, trustworthiness, transparency, and disclosures.

The Board recognises that a corporate governance framework is dynamic in nature and evolves with the changing dynamic nature of Addax Bank’s business. The Board has defined organisational structure authorities and responsibilities for the management team and all staff, in order to ensure proper segregation of duties and accountabilities at all levels. The Board has established three approved committees: Executive Committee; Nomination and Remuneration Committee; Audit and Risk Management Committee. In addition, the Board has approved a Code of Conduct This Code binds signatories to the highest levels of professionalism and due diligence in discharging their duties, outlines areas of conflict of interest and confidentiality, and sets out the responsibilities of signatories to adhere to regulatory and global best practice.

The Board manages the Bank on behalf of the shareholders.  In order to run the business effectively, the Board delegates responsibility for the day-to-day management of the Bank to the Chief Executive, who is supported by the Executive Management Committee, which he chairs. The Executive Committee is supported by various management committees.

The Board and Audit committee meetings are held at least four times in a year and additional meetings are held as required.  The executive committee meeting of the Board is held to clear all the investments and is ratified by the Board as required.

 

Code of Conduct

Addax has adopted a professional Code of Conduct manual that was approved by the Board, with rules on conduct, ethics and on avoiding conflicts of interest, applicable to all the Employees and Directors of the Bank. The Code of Conduct is designed to guide all employees and directors through best practices to fulfill their responsibilities and obligations towards the Bank’s stakeholders in compliance with all applicable laws and regulations of the Central Bank of Bahrain.

The Code addresses such issues as upholding the law and following best practices; acting responsibly, honestly, fairly and ethically; avoiding conflicts of interest; protecting Bank property and data; protecting client confidential information and safeguarding the information of others; complying with inside information rules and with the prohibition on insider trading; preventing money laundering and terrorism financing; rejecting bribery and corruption; avoiding compromising gifts; and speaking up and tipping-off.