The Lebanon Corporate Governance Task Force ACTION PLAN Gérard Zovighian

What are the objectives of the Task Force? Identify structural and functional innovations in the Lebanese private sector. Assessing current status and practice of CG in Lebanon. Implement better CG standards at the financial markets’level, the private level, and the public level. 27/05/03 Lebanese Transparency Association

What are the Guidelines of Work? A) Creation of Subcommittees: 1- The Accounting and Auditing Subcommittee 2- The Legal and Regulatory Subcommittee 3- The Information, Communication, and Media Subcommittee 4- The Membership and Funding Subcommittee 27/05/03 Lebanese Transparency Association

What are the Guidelines of Work? B) Use of available principles as a base: 1- Cadbury Report 2- OECD Principles 3- World Bank Group’s Reports 27/05/03 Lebanese Transparency Association

What are the Guidelines of Work? C) Assessment of Lebanon’s Current Compliance Level. D) Looking for Innovative Communication Channels. Private Sector’s Approach to Corruption 27/05/03 Lebanese Transparency Association

Lebanese Transparency Association The Action Plan Focusing on Public and Corporate Governance: Addressing CG Principles Principles I and II: The rights and equitable treatment of shareholders. Principle III: The role of stakeholders in Corporate Governance. Principle IV: Disclosure and Transparency. Principle V: The responsibilities of the board. 27/05/03 Lebanese Transparency Association

Lebanese Transparency Association The Action Plan Focusing on Public and Corporate Governance: ii) Self-Assessment mechanisms on the status and practice of related principles. 27/05/03 Lebanese Transparency Association

Lebanese Transparency Association The Action Plan B) Bringing the Change… Joining efforts: . Building a consensus for reforms . Assisting in adopting and implementing principles 27/05/03 Lebanese Transparency Association

Lebanese Transparency Association The Action Plan B) Bringing the Change… How to assist in the adoption and implementation of principles? A change of culture and crafting of CG strategies. Amendments of laws and institutions. Enforcing right to know and to tell. Building the necessary human Capital. Ensuring sustainability and development. 27/05/03 Lebanese Transparency Association

The Accounting and Auditing Subcommittee The Deliverables The Accounting and Auditing Subcommittee 1- A thematic list of accounting and auditing issues 2- The results of the self-assessment compliance survey 3- A table of codes and principles 4- Contributions to the final draft of the CG survey in Lebanon: The accounting and auditing section 27/05/03 Lebanese Transparency Association

The Legal and Regulatory Subcommittee The Deliverables The Legal and Regulatory Subcommittee A- Short-term objectives: 1- Suggesting amendments to laws (particularly the Code of Commerce) 2- Developing and contributing to the drafting of CG principles 3- Recruiting active members B- Long-term objectives: 1- Lobbying for legal amendments 2- Drafting and lobbying for other related laws 3- Creating a CG research center for Legal and Regulatory purposes 27/05/03 Lebanese Transparency Association

The Information, Communication and Media Subcommittee The Deliverables The Information, Communication and Media Subcommittee 1- Develop tools to address the the government and business representatives 2- Launch seminars 3- Assist in updating the LCGTF website 4- Distribute all material to raise awareness in 3 languages 27/05/03 Lebanese Transparency Association

The Membership and Funding Subcommittee The Deliverables The Membership and Funding Subcommittee 1- Preparation for the 2nd Forum on CG for MENA countries 2- Launch a website for the LCGTF, presenting the Task Force and including literature and resources on CG. 27/05/03 Lebanese Transparency Association