The Islamic Arab Insurance Company, commonly known as SALAMA, has recently issued a clarification regarding its proxy approval process, as outlined in the Corporate Governance Manual. This move aims to ensure transparency and proper representation during shareholder meetings, an essential aspect of corporate governance in the financial sector.

According to the press release, shareholders who are entitled to attend the general assembly can delegate a representative of their choice. However, the representative cannot be a board member, company employee, or part of a securities brokerage company. The delegation must be formalized through a written power of attorney, explicitly granting the proxy the right to attend and vote on resolutions during the assembly. Additionally, the proxy must not hold more than 5% of the company's issued capital in this capacity.

To further ensure the legitimacy of the proxy, the shareholder's signature on the power of attorney must be verified by one of several authorized entities. These include a notary public, the commercial chamber of the economic department in the UAE, a bank or licensed company within the state, or any other licensed entity authorized to perform attestation works. This multi-tiered verification process is designed to uphold the integrity of shareholder meetings and prevent any potential conflicts of interest.

SALAMA's emphasis on clear and structured proxy approval processes reflects its commitment to adhering to Islamic Shari’a principles, which govern all its operations. As a leading provider of takaful solutions in the UAE, the company is tasked with balancing modern financial practices with traditional Islamic values. This latest move aligns with its ongoing efforts to maintain transparency and accountability in its corporate governance practices.

For investors, this clarification is a positive indicator of SALAMA's dedication to robust governance. By ensuring that shareholder meetings are conducted with transparency and integrity, the company reinforces its position as a reliable player in the takaful industry. However, given the current neutral outlook on the company's future, investors might consider holding their positions. This approach allows them to benefit from any potential positive developments while mitigating risks associated with market volatility.