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Governance Charter

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Corporate Governance is one of the basic systems approved by major investment and financial institutions in many countries of the world. In order to keep pace with this global trend, The Board of Commissioners of the Capital Markets Authority of the State of Kuwait approved the issuance of corporate governance rules within the executive regulations of the Capital Markets Authority Law No. 7 of 2010.

To maintain this commitment, AAYAN Leasing & Investment Company has created an institutional governance framework that ensures compliance with the rules and principles of governance in accordance with a set of principles and standards of the Board of Directors and the Executive Management. These principles and standards aim to ensure sound administrative organization, the distribution of powers and responsibilities, the separation of competencies, the adoption of integrated reporting systems, the promotion of professional and ethical behavior and the integrity of financial reporting.

In conjunction with that, the Company has established the rules and principles of governance within its business methodology by ensuring a balanced structure for the Board of Directors with the majority of non-executive and independent members carrying out their roles and responsibilities.

This, in turn, in the context of defining the tasks and responsibilities, has resulted in the formation of several committees represented in the Audit Committee, Risk Committee and the Remunerations and Nominations Committee from among its members and the adoption of mechanisms for the work of those committees. Also, the separation of the functions and responsibilities of members of the executive body of the company through the adoption of financial and administrative powers, and work to enhance and improve performance by ensuring effective training and the adoption of a performance evaluation system for both the Board of Directors and executive management.

The Company guarantees safety and integrity of the financial statements by emphasizing the independence and impartiality of the Company's auditor. Both the Board of Directors and the Executive Management shall provide the necessary undertakings for safety and integrity of the financial statements and related reports. Since this is one of the most important pillars and key indicators of integrity and credibility in the company's presentation of its financial position to support the confidence of investors in the company and related parties.

In order to ensure the face of potential investment risks, the Company adopts an internal risk management system consisting of the Board Risk Management Committee and the Risk Management Unit, which is responsible for following up and measuring the potential risks that the company may encounter during the exercise of its activities, reduce risks and make proposals and recommendations thereon. As well as the preparation of risk appetite that determine the acceptable risk to the company and its board of directors.

On the other hand, the Company is working to promote professional behavior and ethical values in various dealings with stakeholders and relevant parties by supporting the principles of integrity and transparency. As the company adopts an integrated system of disclosure in accordance with the laws and regulations, ensuring the rights of both stakeholders and shareholders, encouraging them to participate in the follow-up of the various activities of the company and motivate shareholders to attend the company's general assemblies.

The Company did not overlook the side of social responsibility undertaken for the development and prosperity of the Kuwaiti society, where the company holds many events that ensure a balance between the objectives of the company and general objectives of the community. In addition to working to highlight the company's social role in the State of Kuwait, which would contribute to the progress and the advancement of society.