Corporate governance is understood as a system of controls over a corporate entity which defines the rights and responsibilities of the different
stakeholders in the corporation such as the Board, shareholders, managers and others.
Board of Directors
The Board comprises of 6 members including the Managing Director. The Board is responsible for the stewardship of the company on behalf of
shareholders with the objective of creating long-term shareholder value, providing value for money to customers and value for distributors
in a transparent and compliant fashion.
Board Committees
The Board has established three approved committees: the Nomination, Remuneration & Governance Committee; the Audit & Compliance Committee
and the Investment Committee.
Nomination, Remuneration & Governance Committee
Responsibilities
* Monitor the establishment of an appropriate corporate governance framework.
* Evaluate performance of Board members and the Managing Director.
* Recommend and implement changes to Board and Board committee membership.
* Recommend the remuneration and reward policy and the package of the Managing Director.
Audit & Compliance Committee
Responsibilities
* Review and approve audited annual financial statements and review periodic financial reports.
* Select external auditors and ensure their adherence to professional standards.
* Oversee the internal audit program to monitor the effectiveness of the internal controls.
* Assist in developing risk management framework.
* Ensure compliance with all relevant regulations.
Internal Audit
Internal Audit is an independent appraisal function which examines and evaluates the activities of the company. The objectives of the Internal Audit Function
is to assist the Audit & Compliance Committee in the effective discharge of its responsibilities by providing it with information, analyses, appraisals
and recommendations concerning the activities reviewed and by promoting effective control at a reasonable cost. Internal audit staff are authorised, within
an agreed plan and mandate, to review all areas of the Company and to have full access to all Company activities, records, property and personnel.
Investment Committee Responsibilities
* Monitor the impact of investment markets and the regulatory environment on Legal & General Gulf's Takaful's investments and recommend changes as
appropriate.
* Monitor and review the investment performance and operational services of internal and external fund managers.
* Monitor the operational management of the unit-linked and other funds ensuring that these remain effective and that principles of fairness are adhered to.
Shari'ah Supervisory Board
Responsibilities
* Guide, monitor and supervise the activities of the company to ensure compliance with Islamic principles.
* Review and approve compliant individual and corporate products.
* Review and approve compliant member and shareholder investments.
The Board of Directors delegates responsibility for the day-to-day management of the business of the company to the Managing Director who is
supported by a senior management team. A body of policies and procedures has been developed and approved to facilitate operational management
and ensure compliance with regulations and best practice.
Management Committee
* Provide a forum through which the senior management team exchange ideas and opinions on issues relating to company policy and strategy.
* Act as the body authorised to implement the strategic directives from the Board.
* Oversee the development and application of approved policies and procedures.
Policies and Procedures
The company continues to develop, review and enhance company policies and procedures on an on-going basis. These address a wide range of areas
including Anti-Money Laundering (AML), Fraud and Financial Crime. The company annually submits an AML report to the Central Bank of Bahrain (CBB)
as required.
