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Corporate Governance

Corporate Governance.

Refers to the way in which a company is governed, how it makes decisions, its processes and policies, and how it deals with the various interests of its many stakeholders — including shareholders, customers, employees and the broader community.

Corporate governance is achieved by establishing a system that clearly defines authority and responsibility resulting in a system of internal controls that is regularly tested to ensure effectiveness.

At ABC Capital bank Limited, the board places a high degree of importance on the maintenance of a sound control environment and applying the highest standards of business integrity and professionalism in all areas of the institution's activities.

Respective Responsibilities.

The shareholders’ role is to appoint the board of directors and the external auditors. This role is extended to holding the board accountable and responsible for efficient and effective governance.

The board of directors is responsible for the governance of the institution and to conduct the business and operations of the institution with integrity and in accordance with the requirements of the Ugandan Companies Act ( Cap 110) and the Financial Institutions Act , 2004 and in a manner based on the principles of transparency, accountability and responsibility.

Board of Directors.

The Board is chaired by a non-executive Chairman and includes the Managing Director, Executive Director and five other non-executive directors. All the non-executive directors are independent of management. Directors are required to disclose all areas of conflict to the board and are excluded from voting on areas of conflict of interest. The board members have extensive business experience.

The board has delegated the authority for day to day management to the Managing Director. It however retains the overall responsibility for financial and operational decisions, and monitoring performance of senior management. The board meets on a quarterly basis and has a formal schedule of matters reserved to it and has access to the company secretary, lawyers and auditors.

The key function of the board is the identification of current and future business risks and to ensure that the necessary systems and controls are in place to enable such risks to be monitored and effectively managed. The board has appointed various sub- committees to which it has delegated certain responsibilities with the chairman of sub-committees reporting to the board.

ABC Capital Bank is lincensed and regulated by Bank Of Uganda.