Navigate Up
Sign In
Home  |  Contact Us     
Advanced Search

Corporate Governance

A   A           Print
 

Corporate Governance

Corporate Governance Framework
Fransabank believes in, and is committed to implement sound Corporate Governance practices, which is considered the basis for its future development, enhanced performance and strong confidence in its activities. 

The Board of Directors has adopted a Corporate Governance Code, which was developed in accordance with Fransabank SAL by-laws and the guiding principles of good corporate governance. The code delineates a Corporate Governance Framework in line with the regulatory requirements and international best practices. This framework promotes fair and transparent relationship between the Bank’s Management, its Board of Directors, its Shareholders and other Stakeholders.

The Group’s strategy is to standardize the Corporate Governance practices to all its local and foreign subsidiaries, taking into consideration the Corporate Governance requirements of host jurisdictions. 

During 2013, Fransabank has conducted a comprehensive review of its Corporate Governance practices and has also pursued the development of these practices at the level of the Group.
 
Governance Structure

Fransabank Corporate Governance structure includes the General Assembly of Shareholders; the Board of Directors; the Chairman; the Deputy Chairman; the various committees; Control functions; the External Auditors; Senior Management and the Business and Support functions. The aim behind such a structure is to provide an efficient framework for the assignment of responsibility and accountability.
 
Rights of Shareholders 
Shareholders enjoy all rights conferred upon them by the Lebanese Code of Commerce, including the right to vote at the General Assembly, the right to receive dividends, the right to transfer their shares and the preferential right to subscribe to capital increases. All common Shareholders, including minority Shareholders, enjoy the same rights and benefits and have one voting right for each common share (the principle of one share, one vote) without limitation. Shareholders who own registered shares for at least two years are entitled to a double voting right according to Article 117 of the Lebanese Code of Commerce. 

Board of Directors
Fransabank is governed by a Board of Directors, which consists of twelve members elected by the General Assembly of Shareholders for three years. 

The management of the Bank is vested in the Board of Directors, which at Fransabank consists of a sufficient mixture of non-executive and independent members. The majority of Board members qualify as non-executive. This composition aims to safeguard the governance and effectiveness of the Board and to ensure the objective of adding value to all Shareholders, investors, clients and community in the short, medium and long terms.

The Board has overall responsibility of the Bank, including adopting and overseeing the implementation of the Bank’s strategic objectives, risk strategy, risk policies, corporate governance and corporate values, as well as ensuring that adequate, effective and independent controls are in place. 

During 2013, the Board of Directors has met four times.

In carrying out its oversight duties, the Board is supported by the Corporate Governance Committee, Risk Management Committee and Audit Committee. These committees are chaired by independent non-executive members and comprise non-executive Board members. These Committees meet at least quarterly and when necessary. A charter was established to each Committee, which indicates the Committee’s scope of work, membership structure and composition, meetings as well as its roles and responsibilities.
 
Board Members 
 
 
Corporate Governance Committee
Risk Management Committee
Audit Committee
H.E. Mr. Adnan Kassar
Executive Director

 
 
 
Mr. Adel Kassar
Executive Director

 
 
 
Mr. Antoine Jeancourt Galignani
Non-Executive Director

ü Chairman
 
ü Chairman
Mr. Rafic Charafeddine
Non-Executive Director

 
 
 
The Public Institution for Social Security - Kuwait
Non-Executive Director

 
 
 
Mrs. Magda Rizk
Non-Executive Director

 
ü Member
 
H.E. Mr. Nehmé Tohmé
Non-Executive Director

 
 
 
H.E. Mr. Walid Daouk, Esq.
Non-Executive Director

ü Member
 
ü Member
Mr. Mohamad Al Fadl
Non-Executive Director

 
 
 
Dr. Walid Naja
Non-Executive Director

ü Member
ü Chairman
ü Member
Mr. Bernd Tümmers
Non-Executive Director

 
 
 
Mr. Henri Guillemin
Non-Executive Director​
 
ü Member
 
 
 
Charter of Board Committees
 
Corporate Governance Committee

The responsibility of the Corporate Governance Committee is to provide oversight of all material Corporate Governance issues affecting the Bank and its subsidiaries; and to ensure that Fransabank Corporate Governance practices are in line with the regulatory requirements and international best practices.  

Risk Management Committee

The Risk Management Committee’s responsibilities are to assist the Board of Directors in fulfilling its risk-related duties and to oversee the proper implementation of the risk management principles. In discharging its responsibilities, the Committee monitors the Bank’s risk profile through the reports submitted by the Chief Risk Officer to the Risk Management Committee prior to presenting them to the Board of Directors. The Committee is also responsible for recommending to the Board of Directors the Bank’s risk policy including the risk appetite and risk tolerance. ​
 
Audit Committee

The Audit Committee is established to assist the Board of Directors in its oversight responsibilities regarding the:

  • Evaluation of the internal control regulations and procedures
  • Assessment of the qualifications and independence of the External Auditors
  • Supervision of the Internal Audit’s activities
  • Integrity of the financial statements
  • Review of the Bank’s disclosure standards
During 2013, each of the Corporate Governance Committee, Risk Management Committee and Audit Committee held four meetings.

Management

The Chairman of the Board, in his capacity as General Manager, may delegate some of his managerial responsibility to another General Manager or Managers, subject to Board approval. At Fransabank, and in addition to the Chairman and the Deputy Chairman, the Senior Management includes General Managers, Deputy General Managers and Heads of key departments. Also an Executive Committee and several Management Committees are established to support the Chairman and the Deputy Chairman in running the day-to-day management of the Bank.​

Control Functions

Fransabank implements sound internal control system, including Risk Management, Internal Audit, Compliance, Corporate Governance and Inspection functions. These functions ensure that the bank’s activities are performed in accordance with the prevailing laws and regulations as well as with the Bank’s policies and procedures.​
​​
  All Rights Reserved for Fransabank 2014 | Disclaimer  |  Sitemap  |  Privacy Policy     Share On facebook twitter mail   Join Us On facebook linkedIn youTube twitter  
Designed & Developed by Born Interactive