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Abu Dhabi Securities Exchange (ADX) held a workshop titled ‘Investor Relations and the success of a company in providing a website page and platform for investors.’ The educational session was held for companies listed on ADX to understand how to enhance investor relations and meet their regulatory requirements, in order to advance the Exchange and meet international best practices regarding Investor Relations. A number of Investor Relations Managers from the listed companies attended the workshop.
The Investor Relations workshop was carried out to help listed companies meet investor relations and data requirements for shareholder information, to meet Article (35) of the resolution of the Chairman of the Securities and Commodities Authority No. (7 / R.M) of 2016. This article focuses upon the standards of institutional discipline and governance of public shareholding companies.
H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, said that the Exchange is keen to support and assist companies in enhancing the role of Investor Relations Managers as well as improving relations between the respective company and investors.
H.E. stated that ADX would continue to work with the companies on implementing the most important recommendations of this workshop and ensure they appoint an investor relations manager. In addition, ADX will follow up on the requirement of providing an electronic page or platform containing all the important information of interest to investors as stipulated in the aforementioned Article 35 and finally ADX will review the respective websites to verify the implementation of the agreed upon recommendations within a specific time limit.
This article obliges listed companies to appoint a manager for Investor Relations according to specific conditions, including the ability to speak and communicate in both Arabic and English, to have met the required educational qualifications, and have the necessary practical experience. ADX will verify the commitment of its listed companies in providing a separate page or a platform for Investor Relations containing information and data required.
Article (35) of the resolution of the Chairman of the Securities and Commodities Authority No. (7 / R.M) of 2016 obliges companies listed on ADX with an obligation to provide important information to shareholders. The workshop explained how to collectively strengthen the relationship between companies and investors in this regard and determined the parameters of the Investor Relations Manager’s role, in addition to clarifying shareholder rights under the law. The workshop also reviewed core objectives of raising the level of consistency and quality of responses to analyst and investor queries, in addition to enhancing stakeholders' knowledge and their understanding of data related to a company’s performance.
His Excellency continued, “At ADX we have ensured the ease of communicating with companies to guarantee the smooth implementation of all the recommendations discussed at the workshop. Companies should appoint Managers for Investor Relations, provide a page or a platform containing all the important information of interest to investors as stated in Article 35 and, ensure they review their website to verify all recommendations are applied on time prior to the deadline.”
The workshop outlined a company’s responsibility for providing data, financial reports, financial results, minutes of the general assembly meetings, and other noteworthy events. Also outlined were the necessary procedures to provide all data and information to the Investor Relations Officer. This includes the Board of Directors' decisions upon their issuance and the periodic and annual financial statements upon their approval by the Board, which will help enabling the Investor Relations Officer to carry out the tasks specified.
Attendees were also briefed on:
- The rights of investors and shareholders, which should be provided by the Investors' relations managers and listed companies.
- The right to follow up the performance of the company through the financial statements, by reviewing the company's balance sheet, profit and loss account, reports of the board of directors, and the auditors of the company related to the previous financial year.
- The fact that all shareholders have the right to obtain information enabling them to exercise their rights to the fullest and without discrimination between them.
- Stakeholders have the right to see transactions with related parties, request access to the company's books, documents and any documents related to transactions with related parties, and to file a lawsuit to obtain all the information and facts that help to disclose the truth of these deals.
- Access to the minutes of the Assembly meeting and many other rights.
The workshop also discussed how ADX updated its electronic disclosure system. This development will result in the direct and immediate disclosure of information throughout the year on ADX's website, excluding suspension, re-trading, and insider trading situations. Moreover, this will result in providing immediate disclosure and information to ADX’s stakeholders.
Furthermore, the workshop clarified the procedure of dealing with a listed company that accumulates losses of 20% or more of its capital and the regulations and mechanism for dealing with such a company.
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