Corporate Governance

Adopted September 10, 2010; amended and restated November 4, 2013


1. Introduction


The Board of Directors (the "Board") of KDC Limited (the "Company") has adopted these Corporate Governance Guidelines as a framework for Board governance over the affairs of the Company for the benefit of its shareholders.


Corporate governance is commonly referred to as a system by which Companies are directed and controlled. It is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relationships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework.


Contemporary discussions of corporate governance tend to refer to principles raised in three documents released since 1990: The Cadbury Report (UK, 1992), the Principles of Corporate Governance (OECD, 1998 and 2004), the Sarbanes-Oxley Act of 2002 (US, 2002).


Rights and equitable treatment of shareholders:[15][16][17] Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings.


Interests of other stakeholders:[18] Organizations should recognize that they have legal, contractual, social, and market driven obligations to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.


Role and responsibilities of the board: [19][20] The board needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment.


Integrity and ethical behavior: [21][22] Integrity should be a fundamental requirement in choosing corporate officers and board members. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making.


Disclosure and transparency: [23][24] Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide stakeholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.


2. KDC Board of Directors


The Company’s management and employees through the supervision of the Board, conduct the Company’s business with the objective of enhancing the long-term value of the Company for the benefit of its shareholders. The Board is elected by the shareholders to oversee the management of the Company and to help assure that the interests of the shareholders are served.


3. KDC Board Composition


The Company has a policy of to maintain a board of not less than three members, with the exact number to be fixed from time to time by the Board (subject to the rights of holders of any series of preferred stock which the Company may issue in the future).

The company dedicated to include a Non-Executive director for increasing its adherence to the Corporate Governance Rules.


4. KDC Director’s Qualifications


Candidates for nomination or reelection to the Board should possess the following qualifications, among others:

• the highest level of personal and professional ethics, integrity and values;

• expertise that is useful to the Company and complementary to the background and expertise of the other members of the Board;

• a willingness and ability to devote the time necessary to carry out the duties and responsibilities of Board membership;

• a desire to ensure that the Company's operations and financial reporting are effected in a transparent manner and in compliance with applicable laws, rules and regulations; and

• a dedication to the representation of the best interests of the Company and all of its shareholders.


5. KDC Director’s Responsibilities


The business and affairs of the Company will be managed under the direction of the Board in accordance with the relevant applicable Cypriot law. The Board has developed a number of specific expectations (not an exhaustive list) for the directors.

• Commitment and Attendance: Directors should make every effort to attend, whether in person or telephonically, meetings of the Board and meetings of Board committees on which they serve. Directors are expected to review all materials provided at or in advance of meetings of the Board and its committees.

• Participation in Meeting: Each director should be sufficiently familiar with the business of the Company and its subsidiaries to facilitate active and effective participation in the deliberations of the Board and of each committee on which he serves.

• Ethics and Conflicts of Interest: The Company has developed a Code of Business Conduct. Directors are expected to be familiar with and to adhere to that Code, including, for example, its provisions governing conflicts of interest.

• Confidentiality: The proceedings and deliberations of the Board and its committees are confidential. Each director should maintain the confidentiality of information received in connection with his service as a director.


6. Director Access to Management


Each director will have unabridged access to senior management and other employees of the Company in order to become and remain informed about the Company's business and for any other purpose relevant to the fulfillment of the responsibilities of a member of the Board.


7. Director Compensation


The Board should annually review the form and amount of all types of compensation to be paid by the Company to or on behalf of members of the Board, including, without limitation, cash fees, stock incentives and contributions to charities at the behest of Board members.


8. Continuing Education


The Company will facilitate the participation of all Board members in continuing education programs, at the expense of the Company, that are relevant to the business and affairs of the Company and the fulfillment of the directors' responsibilities as members of the Board.


9. Self-Evaluation


Each year, the Board will conduct a self-evaluation to determine whether it is functioning effectively. In connection with the annual self-evaluation, the Chair of the Nominating and Corporate Governance Committee will be responsible for seeking from each director his evaluation of the performance of the Board. The Board will discuss these evaluations and determine what, if any, action should be taken to improve its performance.






Free delivery system great in principle but seriously flawed
The idea is great in principle, however the process is totally flawed and written by civil servants with no experience in project ...
Saturday, March 28: Coronavirus global update
As of 7.20 this morning more than 597,458 people have been infected across the world and over 27,370 have died but at the same ...
Historic $2.2 trillion coronavirus bill passes U.S. House, becomes law
The U.S. House of Representatives on Friday approved a $2.2 trillion aid package – the largest in history – to help ...
Coronavirus: Look out for your neighbour
SOCIAL media is awash with comments highlighting the need to look out for our neighbours and in particular those that live alone, ...
The EU and the coronavirus pandemic
By Nikos Korogiannakis and Antigoni Pafiti On 11 March 2020 US President Donald Trump stunned EU leaders by announcing a 30-day ...
Our View: Parents should be fined for letting their teens roam free during a lockdown
WE WOULD have hoped that this tradition with the bonfires would have been suspended now that the country is on lockdown. The ...
Real GDP could shrink by up to 9.2 per cent in 2020
Real GDP in Cyprus could decrease by between 3.5 per cent and 9.2 per cent in 2020, according to a study published by ...
Turkey adopts ‘voluntary’ stay-at-home quarantine
President Tayyip Erdogan called on Friday for a “voluntary quarantine” in which Turks stay at home except for ...
Iran urges U.S. to free Iranian prisoners amid coronavirus
The Tehran government urged the United States on Friday to release Iranians held in U.S. jails on sanctions-related issues due to ...
Pope holds dramatic solitary service for relief from coronavirus
Pope Francis said the coronavirus had put everyone “in the same boat” as he held a dramatic, solitary prayer service ...
Coronavirus: Cypriots take to balconies and windows to applaud healthcare workers
The sound of applause could be heard through the streets of Cypriot cities on Friday night for healthcare workers batting the ...
Cash-strapped airlines resist mounting coronavirus refund claims
European airlines waiting in line for coronavirus bailouts want to tap another source of interest-free loans: their customers. ...
Supermarkets will be closed for April 1 holiday
Supermarkets will remain closed on April 1 for the public holiday, the Cyprus Supermarkets Association announced on Friday. In a ...
Coronavirus: landlords say non-paying tenants still liable to pay up after crisis
The Cyprus Association of Property Owners (Ksia) said on Friday owners and tenants need to find a “mutually acceptable payment ...
Parents should be punished for their kids unruly behaviour
“Where are the parents, where are the guardians?” Is this question for real? Since my husband and I returned to live in Cyprus in ...
Coronavirus: Deaths reach five, 16 new cases, expert says situation still manageable (Update 2)
The health ministry on Friday announced that two more people died, a 76-year-old Cypriot woman with underlying health problems, ...
Condom shortage looms after coronavirus lockdown shuts world’s top producer
A global shortage of condoms is looming, the world’s biggest producer said, after a coronavirus lockdown forced it to shut ...
Coronavirus: House approves raft of bills to shore up economy (Update 1)
Parliament on Friday approved a raft of bills aimed at shoring up the economy to withstand the fallout from the coronavirus ...
Coronavirus: Kisa says detainee facilities contrary to govt’s own measures
Migrant support NGO, Kisa on Friday said the government’s policy on tackling the migrant flow was threatening public health since ...
Coronavirus: Civil service union dismisses employers’ call for pay cuts
The main government workers’ union, Pasydy, on Friday dismissed as unacceptable, calls by employers for pay cuts in the public ...

Featured Services

Upcoming Events

The KDC in the ongoing effort to grow its network of partners and associates in Cyprus and abroad organized and organizes frequent visits to associates and various exhibitions abroad and in-house seminars to associates.   Upcoming Events For ...

Cyprus Tax Services

Tax can be complicated. Even the most basic tasks of sorting out tax returns often require in-depth specialist knowledge. It is essential to be armed with this knowledge to avoid paying more tax than you need to. Our tax specialists ensure that our ...

Indirect Tax Services

Our tax specialists assist clients with VAT compliance obligations and provide services in relation to VAT reviews thus assisting in early identification of problem areas. They also advise clients on international transactions involving VAT. ...

Past Events

The KDC in the ongoing effort to grow its network of partners and associates in Cyprus and abroad organized and organizes frequent visits to associates and various exhibitions abroad and in-house seminars to associates.   Past Events ...

Internal Audit

Is an objective assurance and consulting activity designed to add value and improve an organisation's operations. It can help an organization accomplish its strategic objectives by bringing a systematic, disciplined approach to evaluating and ...

Specific ADIT course provider in Cyprus

CIOT's Advanced Diploma in International Taxation (ADIT)    1. Introduction We KDC Chartered Accountants Limited in cooperation with Pantelis Stylianides Institute of Accountancy, are able to provide the course (ADIT) through one of the most ...

© Copyright 2020 - KDC Chartered Accountants Ltd
Developed By: Dynamic Works  |  Powered By: DWCMS