jordan pulse -
Investment insurance information No. (677)
(Your right to know about the guarantee)
The guarantee contributes to 80 companies
Why did an official burden the guarantee representatives in the board of directors of a major company so hard..?!
The Social Security Corporation contributes to about (80) public and private joint-stock companies with limited liability within the stock investment portfolio.
The Corporation and the Guarantee Fund Investment Fund are represented on the boards of directors of most of these companies (120) representatives at least, part of them are employees of the Corporation and its fund, and the other part is chosen from outside the Corporation and they are often former ministers and current senior officials..!
It is true that there are grounds for selecting insurance representatives on the boards of these companies, but I believe that the issue needs to be reviewed, re-examined, and a real effective evaluation. Two things reminded me of this issue today:
The first: the serious and critical talk taking place today about the huge and exaggerated benefits, salaries, and benefits enjoyed by the chairmen of the boards of directors of some public joint-stock companies and their executive departments, as some of them earn hundreds of thousands of dinars annually, and most of these companies have an excellent share in them, which raises a question. About the reasons for the silence or approval of the guarantee’s representatives for these huge benefits, and what is the opinion of the investment fund and its board on that, and does the fund follow up the reports of its representatives in an accurate and in-depth way..?!
The second: Yesterday's initiative of the Guarantee Money Investment Fund to hold the seventh meeting of its representatives in the boards of directors of the companies in which it contributes, and to talk about activating the role of its representatives in the companies' boards of directors and applying the standards of good governance and true and honest representation of the interests of the guarantee..!
Here, I would like to emphasize the following:
First: Article 4 of the Social Security Investment Fund and Investment Board Regulations obliges the fund to follow up the performance of the companies in which the guarantee institution contributes and the performance of its representatives in these companies, in order to ensure the benefit of the fund and the maximization of its returns.
Second: One of the most important responsibilities of the boards of directors of joint-stock companies as stated in the governance guide for joint-stock companies listed on the Amman Stock Exchange is: defining the powers and tasks of the company’s executive management, reviewing and evaluating its performance, appointing the company’s general manager and terminating his services, and approving the basis for granting incentives, rewards and benefits for the board of directors and the executive management. And take all measures to ensure compliance with the provisions of the legislation in force, and put in place the necessary procedures to ensure that shareholders obtain their rights without discrimination.
The foregoing calls for us to reconsider the basis for selecting guarantee representatives in companies, and the need to take into account that they are at the highest levels of competence, courage and integrity. Competence alone is not sufficient, and courage without competence is also not sufficient. Why does the fund choose and even favor former ministers and some current officials..!
I remember that when I was a representative of the guarantee in three public shareholding companies at different times, I did not compliment anyone, a party, or management at the expense of the interests of the company, the guarantee, and its shareholders. .!" It is not miserliness, God forbid, because whoever wants to be honored must be honored from his own money, to the extent that he is keen on the interests of the guarantee and the rest of the shareholders among the owners of the money..
I also remember that one day I heard a violent intervention in one of the economic seminars by a former high-caliber official who "later assumed the position of Minister of Finance" in which he severely criticized the representatives of the guarantee in the board of directors of one of the large companies in which the guarantee owns a good share and described them as asleep and absent from what is happening in the company. Important fateful events led to losses in it, and there were two or three representatives of the guarantee in the council.!
Finally, there is a great responsibility on the shoulders of the Insurance Funds Investment Board in following up on all of the above, and I believe that priority should be given to the qualified employees of the Insurance Corporation and its retirees and pensioners in general to represent the Corporation in the boards of directors of the companies in which it contributes, and not favoring former ministers and current officials with interventions From the government and others for a benefit, not for the public interest and the interest of the guarantee and its funds.. I hope that the Fund will provide us through the Contributions Support Department with a study indicating the size of any loss or missed opportunity due to the negligence, negligence, or poor competence of any of the guarantee’s representatives in the boards of directors of companies or Whether this is a result of the fund not taking their recommendations and what was stated in their periodic reports submitted to it..and that is part of the evaluation, challenge and disclosure..!
And to talk the rest.
(A series of insurance information and awareness of the guarantee law that we present in a simplified manner, and the law and regulations issued pursuant to it remain the original - it is allowed to transfer, share or quote from it for the purposes of awareness and knowledge with reference to the source).
Insurance and social protection expert
Journalist and human rights activist/ Musa Al-Subaihi