Corporate Governance

Corporate governance refers to the set of procedures, rules, policies and resolutions put in place to direct and manage a company. It essentially involves balancing the interests of a company's stakeholders. A well-built corporate governance structure leads to stronger management oversight, information transparency and much faster process for identifying all types of risk in order to attain company's objectives.

Mellat Investment Bank, Aware of the concepts of corporate governance, had defined and implemented this structure as executive units and 3 professional committees including Risk committee, Audit committee and compensation committee.

Audit Committee

The purpose of audit committee is defined as aid to the board's supervision on operations and optimization of them in order to: 1) effective risk management and internal audit processes, 2) Financial Health reporting 3) Effective internal audit 4) Independency and effectiveness of external auditor 5) Observance of rules and regulations.

The committee is in charge of overseeing internal and external auditors, suggesting external auditors to the board or shareholders in order to be appointed, determining the remuneration fee and dismissal them, define and review the areas and auditing times, receiving the audit reports and ensuring corrective actions.

Risk Committee

Risk management structure as a part of corporate governance platform in MIB, includes risk department and risk committee. Risk committee, is composed of elected members of the board of directors and the executive manager of risk department in order to report risk status of the business. The committee is in charge of making policies in order to identify business risks, measuring risks and potential accidents and planning arrangements to reduce the risk level, providing risk response strategies and advising the CEO and board of trustees on the limits and appetite for risks.

Compensation committee