Al Qudra in corporate governance shake up

SHAKE UP: Al-Shamsi, pictured, has been divested of authority. (Getty Images)

Abu Dhabi-based Al Qudra Holding has denied media reports that it has transferred authority for day to day operational matters away from its chairman, Eng Salah Salem Bin Omeir Al Shamsi, and to its CEO, Mahmood Ebraheem Mahmood, for any other reason than meeting corporate governance regulations.

In a statement released Wednesday evening the company, which in March dropped plans to sell shares in what would have been the UAE'S second-largest initial public offering (IPO), said the regulations call for a separation of the roles of the Chairman and Managing Director.

According to Mahmood the company still plans to list its shares this year.

“We will continue working closely together to realize the vision that has been set for the company,” Al Qudra's CEO said in the statement. “The company’s growth has been unprecedented and, with plans of going public later in 2008, we will implement the essential initiatives that will establish the best working model that suits the company's expansion plans.”

Al Qudra confirmed in the statement that Al Shamsi would continue to lead the company as Chairman by defining the company’s strategy and by outlining its vision. Al Mahmood would run the "day to day operations" of the company.

Al Qudra appointed Mahmood Ibrahim Al-Mahmood as chief executive officer in March, just as the company was preparing to raise about $1 billion in the IPO.

Al Qudra, which has 30 units in industries including real estate and infrastructure, said on February 23 it planned to offer 55% of the company in the first week of March, initially looking to raise 3.7 billion dirhams.

RELATED: Al Qudra plans UAE's second largest IPO

Then, on March 2, it said it dropped the plan "given recent discussions around the revised companies' law, allowing for UAE institutions to offer less than 55% through an initial public offering".

RELATED: Al Qudra shelves initial public offering

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