The Corporate Governance Committee is responsible for overseeing Investcorp`s corporate governance. Members of the Corporate Governance Committee were appointed by the Board of Directors and, as of June 30, 2020, the committee had three members. The Corporate Governance Committee must meet at least twice per fiscal year. After Shleifer and Vishny (1997), scientists have traditionally studied corporate governance as part of the agency`s theory and have viewed the company as a crossroads of contracts between contractors (risk-bearing shareholders) and agents (technical expert managers). Comparative corporate governance is generally designed based on the mechanisms available to minimize agency problems resulting from asymmetrical information (Denis and McConnell, 2003). Thus, the literature on corporate governance has generally taken a fairly narrow perspective, centered on shareholder rights in a dyadic relationship with shareholders-executives. This narrow perspective, based on agency problems, has proved insufficient in many respects. LMC recognizes the importance of corporate governance as an application of best management practices, which aim to achieve corporate values, objectives and objectives and increase shareholder value in terms of transparency and corporate accountability. The Board of Directors conducted an in-depth review of the Bank`s high-level policy on corporate governance, internal control, risk management and compliance with the latest rules and guidelines of the Central Bank of Bahrain (CBB).
Investcorp invests in mostly illiquid asset classes, such as corporate and real estate assets. Through its regulated subsidiaries in the various legal systems in which it operates, it places a large part of these holdings under the responsibility of the client and retains part of them for its own balance sheet. These investment activities have above-average levels of risk and have resulted in the development of a comprehensive risk management infrastructure and strong corporate governance over the past 38 years. Investcorp`s corporate governance practices are structured according to three principles: The Remuneration – Corporate Governance Committee allows the Board of Directors to assume its responsibility in defining the appropriate composition and evaluating the performance of the Board of Directors, individual directors and management. She is also responsible for the remuneration policy. The committee also plays a leading role in the development of corporate governance strategies and practices and leads the Board of Directors in its annual review of board performance and recommends that the Board of Directors nominate candidates to each nominating committee.