his highness sheikh hamad bin khalifa al-thani · 2017. 3. 2. · his highness sheikh hamad bin...

His HighnessSheikh Hamad Bin Khalifa Al-Thani

Father Emir

His Highness Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani

Emir of the State of Qatar

GOVERNANCE REPORT 20164

GOVERNANACE REPORT FOR THE YEAR 2016

OVERVIEW

As part of the compliance requirement of the Corporate Governance code for listed companies issued by Qatar Financial Markets Authority, and the instructions of Qatar Central Bank, Doha Bank as a Qatari shareholding company listed on the Qatar Exchange is required to disclose the extent to which it complies with the provisions of the code. Doha Bank believes that applying a proper corporate governance framework and principles is essential to assist the Bank in achieving its goals with a high performance level in addition to improving its internal and external working environment, protecting stakeholders’ interests and distributing roles and responsibilities in an ideal way.

During the year, the Bank was keen to enhance the corporate governance framework by applying the corporate governance policies and procedures’ manuals and adopting best practices. This report summarizes Doha Bank’s governance processes for 2016 in accordance with the disclosure requirements of QFMA and QCB; The Code adopted by the QFMA is based on the principle of comply or explain as illustrated below:

BOARD COMPOSITION

The Board currently consists of seven members:

• Chairman• Vice Chairman• Managing Director• 4 Non-Executive directors including one independent member who meets QFMA’s

requirements.

Briefs of each Board Member’s education and experience profile are depicted below:

Sheikh Fahad Bin Mohammad Bin Jabor Al Thani

• Chairman • Chairman of the Executive Committee• Date of Appointment on Board: June 3, 1996• Education/ Experience: Graduate of the Royal Academy, Sandhurst, UK• Other Board Memberships: Board Member at Al Khaleej Takaful Group• Ownership: 4,339,753 shares; i.e. 1.68% as at December 31, 2016 & 4,339,753 shares as

at December 31, 2015• Attendance: Attended six Board meetings

5GOVERNANCE REPORT 2016

Mr. Ahmed Abdul Rehman Yousef Obeidan

• Vice Chairman

• Member in the Executive Committee

• Date of Appointment on Board: April 20, 1982

• Education/ Experience: General Manager, Al Waha Contracting & Trading Est.

• Ownership: 4,346,203 shares; i.e. 1.68% as at December 31, 2016 & 4,306,203 shares as

at December 31, 2015

• Attendance: Attended five Board meetings

Sheikh Abdul Rahman Bin Mohammad Bin Jabor Al Thani

• Managing Director

• Chairman of Policies, Development and Remuneration committee and Chairman of

Nomination and Governance committee

• Member in the Executive Committee

• Date of Appointment on Board: December 21, 1978

• Education/Experience: Bachelor of Civil Engineering, Missouri University, USA

• Other Board Memberships: Chairman of the Board of Directors, Qatar Industrial

Manufacturing Co.; Chairman of the Board of Directors, Qatari Oman Investment Company

(State of Qatar representative); and Board Member, National Leasing Holding.

• Ownership: 4,988,617 shares; i.e. 1.93% as at December 31, 2016 & 4,988,617 shares as

at December 31, 2015

• Attendance: Attended Six Board meetings

Sheikh Abdulla Mohamed Jabor Al-Thani

• Non-Executive Board Member

• Chairman of Audit, Compliance and Risk Committee

• Member in the Nomination and Governance Committee

• Date of Appointment on Board: April 20, 1982

• Other Board Memberships: Chairman of Al Khaleej Takaful Group

• Ownership: 1,937,792 shares; i.e. 0.75% as at December 31, 2016 & 1,937,792 shares as at

December 31, 2015

• Attendance: Attended three Board meetings


Mr. Ahmed Abdullah Al Khal

• Non-Executive and Independent Board Member (as per QFMA’s requirements)• Member in the Policies & Procedures, Development and Remuneration Committee and the

Audit, Compliance and Risk Committee• Date of Appointment on Board: March 3, 2014• Education: Economics & Political Science• Experience: Businessman• Ownership: 1,939,993 shares; i.e. 0.75% as at December 31, 2016 & 1,939, 993 shares as

at December 31, 2015• Attendance: Attended six Board meetings

Mr. Hamad Mohammed Hamad Abdullah Al Mana

• Non-Executive Board Member• Member in the Nomination and Governance Committee • Date of Appointment on Board: April 13, 1999• Other Board Memberships: Vice Chairman, Mohammad Hamad Al Mana Group

Companies; Board Member, Qatar General Insurance & Re Insurance Co.; Board Member, Qatar Navigation Co.

• Ownership: 4,058,901 shares; 1.57% as at December 31, 2016 & 4,058,901 shares as at December 31, 2015

• Attendance: Attended 4 Board meetings

Sheikh Falah Bin Jassim Bin Jabor Al-Thani representative of Jassim and Falah Trading and Contracting Co.

• Non-Executive Board Member• Member in the Policies & Procedures, Development and Remuneration Committee and the

Executive Committee • Date of Appointment on Board: Feb 27, 2011• Experience: Ex-Minster of Civil Service Affairs and Housing• Other Board Membership : Chairman of Board of Directors, National Leasing Holding • Ownership: 2,583,722 shares; i.e. 1% as at December 31, 2016 & 2,583,722 shares as at

December 31, 2015• Attendance: Attended six Board meetings

The current term of the Board Directors started on March 03, 2014 for a period of three years through electon at the AGM.

DEPARTMENTS REPORTING TO THE BOARD

Legal Advisor and Secretary to the Board: Mr. Mukhtar Al Henawy

Mr. Mukhtar Al Henawy has joined Doha Bank in 2002 as Legal Advisor reporting to the Board. He was also appointed as a Secretary to the Board in 2007. He has more than 29 years of


experience, and he worked at law firms before joining the bank.

Mr. Mukhtar obtained a Bachelor’s Degree in Law from Ain Shams University in 1987 and a Diploma in Law in 1988. It is in Doha Bank’s view that the Board Secretary meets all the requirements of the Code.

Head of Compliance Department: Mr. Jamal Al Sholy

Mr. Jamal Al Sholy has joined Doha Bank in 1997 as Head of the Internal Audit Department and in 2002 he has become Head of the Compliance Department to date. He has more than 35 years of experience, and he worked in external audit before joining the bank. The Compliance Department includes the Compliance Control Unit and the AML/CTF Unit. Head of Compliance works independently from the Executive Management and reports to the Board of Directors.

Mr. Jamal holds a Bachelor’s Degree in Accounting and Business Administration from the University of Jordan, 1981.

Chief Internal Auditor: Mr. Mohammad Daoud

Mr. Mohammad Daoud has joined Doha Bank in 2012 as Deputy Head of Internal Audit Department. In 2016, he was appointed as a Head of Internal Audit Department. He has more than 24 years of experience in the field of banking and financial institutions before joiningDoha Bank.

Mr. Mohammad Daoud has got a PhD in Finance.

Executive Management

Doha Bank’s Executive Management consists of the CEO, his assistants and the heads of the executive departments. Following are the profiles of the CEO and the department heads, noting that none of them is a holder of Doha Bank shares.

Chief Executive Officer: Dr. Raghavan Seetharaman

Dr. R. Seetharaman has joined Doha Bank in 2002 as Assistant General Manager. In 2007, he was appointed as CEO of the bank. He has an extensive experience of more than 36 years during which he worked in a number of banks and institutions before joining Doha Bank, including Bank Muscat.

Dr. R. Seetharaman is a Chartered Accountant, whilst being a Gold medalist in his graduation – Bachelor of Commerce. He is a recipient of multiple doctorates from leading universities of the world including two PhDs.


Chief Risk Officer: Mr. Khalid Latif

Mr. Khalid Latif has joined Doha Bank in 1990 and has held several positions since then. He has more than 33 years of experience and has worked for several years in the banking sector and other sectors in Pakistan before joining the bank.

Mr. Latif holds a Master’s Degree in Business Administration from Pakistan.

Head of Treasury & Investment Group: Mr. David Whitcroft

Mr. Whitcroft has joined Doha Bank in 2015 as Head of Treasury and Investment. He has more than 20 years of experience and has worked in several financial and banking institutions before joining the bank.

Mr. David Whitcroft holds a Post Graduate Diploma in Actuarial Science from London.

Chief wholesale Banking Officer: Mr. Cherussery Krishnan

Mr. Cherussery Krishnan has joined Doha Bank in 2000 as an Executive Manager in the Wholesale Banking Group. He has more than 32 years of experience and has worked at a number of institutions and banks before joining Doha Bank.

Mr. Cherussery Krishnan holds a Master’s Degree in the Bank Management.

Head of Group Finance: Mr. David Challinor

Mr. David Challinor has joined Doha Bank in 2008 as Head of Group Finance. He has more than 22 years of experience and has worked at several financial institutions in Australia before joining Doha Bank.

Mr. Challinor holds a Bachelor’s Degree in Economics from England, and he is a member of the Institute of Chartered Accountants in England and Wales.

Head of Retail Banking Department: Mr. Gul Abbass Khan

Mr. Gul Abbass Khan has joined Doha Bank in 2016 as a Head of Retail Banking Department. He has more than 18 years of experience and has worked at several banks and financial institutions.

Mr. Gul Abbas Khan has holds a Bachelor’s Degree and Special Diploma in Economics and Sociology.

Head of International Banking Department: Mr. Frank Hamer

Mr. Frank Hamer has joined Doha Bank in 2016 as a Head of International Banking Department. He has more than 23 years of experience and has worked at the banking sector before joining Doha Bank.

Mr. Frank Hamer holds a Master’s Degree in Business Administration & Chartered Account Certificate.


Head of Human Resources Group: Sheikh Mohamed Abdulla Mohamed Jabor Al Thani

Sheikh Mohamed Abdulla Al Thani has joined Doha Bank in 2015 as Head of theHuman Resources Group. He has more than 24 years of experience and has held several positions in the financial sector and other sectors before joining Doha Bank.

Sheikh Mohamed Abdulla Al Thani holds a Bachelor of Science degree.

Bank Branches, Representative offices and Subsidiaries

Domestically, Doha Bank’s network inside Qatar includes a total of 29 branches, 9 e-branches, and 7 pay offices. Globally, the bank has six branches, Dubai and Abu Dhabi branches in UAE, a branch in Kuwait and three branches in India. Furthermore, we have thirteen representative offices located in Singapore, Turkey, Japan, China, UK, South Korea, Germany, Australia, Canada, Hong Kong, South Africa and the Emirate of Sharjah (UAE) & Bangladesh.

The Bank also owns Doha Bank Assurance Company which is fully owned by Doha Bank and has a strategic share of 44.02% of the capital of one of the Indian brokerage companies which was later re-named as Doha Brokerage and Financial Services and positioned to practice brokerage and asset management businesses. The Bank owns also Doha Finance Limited, registered in the Cayman Islands and primarily used for debt issuance on behalf of the Bank.

Ownership of Shares:

The ownership of Doha Bank’s shares distributed by nationality as at December 31, 2016 is as follows:

Nationality No. of Shares PercentageQatar 224,067,173 86.72%GCC 8,905,705 3.45%Arab countries 2,497,997 0.97%Asia 4,603,487 1.78%Europe 7,393,037 2.86%Africa 91,925 0.04%USA 9,042,829 3.50%Other 1,770,099 0.68%Total 258,372,252 100%

The number of shareholders reached 3246 as at 31/12/2016. The Government of Qatar, represented by Qatar Holding, owns 16.68% of the shares. No shareholders possess more than 2% of the Bank’s shares as per the Bank’s Articles of Association.


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 3

C

ompa

ny’s

O

blig

atio

n to

co

mpl

y w

ith

Cor

pora

te

Gov

erna

nce

Prin

cipl

es

3.1:

The

Boa

rd s

hall

ensu

re t

hat

the

Com

pany

com

plie

s w

ith t

he p

rinci

ples

set

out

in t

his

Cod

e.

ü

The

Bank

was

kee

n on

enh

anci

ng t

he c

orpo

rate

gov

erna

nce

fram

ewor

k by

app

lyin

g th

e co

rpor

ate

gove

rnan

ce p

olic

ies

and

proc

edur

es m

anua

ls a

nd a

dopt

ing

best

pra

ctic

es, i

n ac

cord

ance

with

QFM

A a

nd Q

CB

disc

losu

re r

equi

rem

ents

.

3.2:

The

Boa

rd s

hall

also

revi

ew a

nd u

pdat

e its

app

rove

d co

rpor

ate

gove

rnan

ce p

ract

ices

, and

regu

larly

revi

ew

the

sam

e.ü

3.3

The

Boar

d sh

all r

egul

arly

rev

iew

and

upd

ate

prof

essi

onal

con

duct

rul

es s

ettin

g fo

rth

the

com

pany

’s co

rpor

ate

valu

es a

nd o

ther

inte

rnal

pol

icie

s an

d pr

oced

ures

all

of w

hich

sha

ll be

bin

ding

upo

n th

e M

embe

rs o

f th

e Bo

ard

of D

irect

ors

and

the

com

pany

’s st

aff

as w

ell a

s th

e co

mpa

ny’s

advi

sors

(The

se

prof

essi

onal

con

duct

rul

es m

ay in

clud

e bu

t ar

e no

t lim

ited

to t

he B

oard

Cha

rter

, aud

it co

mm

ittee

’s ch

arte

r, co

mpa

ny r

egul

atio

ns, r

elat

ed p

arty

tra

nsac

tions

pol

icy

and

insi

der

trad

ing

rule

s). T

he B

oard

sh

ould

rev

iew

the

se p

rofe

ssio

nal c

ondu

ct p

rinci

ples

reg

ular

ly s

o as

to

ensu

re t

hey

refle

ct b

est

prac

tices

an

d th

ey m

eet

the

need

s of

the

Com

pany

.

ü

AR

TIC

LE 4

Boar

d C

hart

er

4.1

The

Boar

d sh

all m

ake

sure

tha

t th

e C

ompa

ny a

dopt

s a

Cha

rter

for

the

Boa

rd o

f D

irect

ors

deta

iling

th

e Bo

ard’

s fu

nctio

ns a

nd r

espo

nsib

ilitie

s as

wel

l as

the

Boar

d M

embe

rs d

utie

s w

hich

sha

ll be

ful

fille

d by

all

Boar

d M

embe

rs. T

he s

aid

Boar

d C

hart

er s

hall

be d

raft

ed t

o co

mpl

y w

ith t

he p

rovi

sion

s of

thi

s C

ode,

and

sha

ll be

bas

ed o

n th

e Bo

ard

Cha

rter

ann

exed

to

this

Cod

e an

d as

may

be

amen

ded

from

tim

e to

tim

e by

the

Aut

horit

y. T

he s

aid

Boar

d C

hart

er s

hall

be p

ublis

hed

in t

he c

ompa

ny’s

web

site

and

m

ade

avai

labl

e to

the

pub

lic.

üTh

e ro

les

and

resp

onsi

bilit

ies

of t

he B

oard

are

defi

ned

in t

he B

oard

Cha

rter

. Th

e Bo

ard

Cha

rter

ha

s be

en p

ublis

hed

to t

he p

ublic

thr

ough

the

Doh

a Ba

nk w

ebsi

te a

nd is

ava

ilabl

e to

sha

reho

lder

s be

fore

the

Sha

reho

lder

’s m

eetin

g.

AR

TIC

LE 5

Boar

d M

issi

on a

nd

Resp

onsi

bilit

ies

5.1:

The

Com

pany

sha

ll be

man

aged

by

an e

ffec

tive

Boar

d of

Dire

ctor

s w

hich

sha

ll be

col

lect

ivel

y re

spon

sibl

e fo

r th

e pr

oper

man

agem

ent

of t

he C

ompa

ny.

üTh

e Bo

ard

of D

irect

ors

is r

espo

nsib

le f

or t

he s

tew

ards

hip

of t

he B

ank

and

to p

rovi

de e

ffec

tive

lead

ersh

ip a

nd s

uper

visi

on o

f D

oha

Bank

’s bu

sine

ss, w

hils

t gr

owin

g va

lue

in a

pro

fitab

le a

nd

sust

aina

ble

man

ner.

The

Boar

d’s

role

s an

d re

spon

sibi

litie

s ar

e co

mpl

iant

with

the

req

uire

men

ts o

f th

e C

ode

of Q

FMA

an

d Q

CB,

, and

cov

er t

he f

ollo

win

g ar

eas:

• St

rate

gy•

Gov

erna

nce

• C

ompl

ianc

e•

Risk

Man

agem

ent

• A

utho

ritie

s an

d D

eleg

atio

ns•

Inte

rnal

and

Ext

erna

l Aud

it•

Boar

d C

omm

ittee

s•

Boar

d C

ode

of C

ondu

ct•

Boar

d C

ompo

sitio

n•

Boar

d M

eetin

gs•

Boar

d M

embe

rshi

p Re

quire

men

ts.

Each

Boa

rd M

embe

r’s d

utie

s ha

ve b

een

upda

ted

and

defin

ed in

Job

Des

crip

tions

pre

pare

d fo

r th

is p

urpo

se.

Mor

eove

r, ea

ch B

oard

Mem

ber

is a

lso

requ

ired

to p

rovi

de s

uffic

ient

tim

e to

pe

rfor

m h

is d

utie

s. C

urre

ntly,

tim

e co

mm

itmen

ts a

re n

ot c

ontr

actu

ally

set

but

are

und

erst

ood

by a

ll D

irect

ors.

The

follo

win

g ar

e th

e ge

nera

l rol

es a

nd r

espo

nsib

ilitie

s of

the

Boa

rd o

f D

irect

ors

as s

tate

d in

the

ap

prov

ed C

orpo

rate

Gov

erna

nce

Polic

ies’

Man

ual:

• D

eleg

ate

the

auth

ority

to

the

Man

agin

g D

irect

or t

o ov

erse

e th

e C

EO o

f D

oha

Bank

to

impl

emen

t Bo

ard

dire

ctiv

es a

nd r

esol

utio

ns. T

he B

oard

sha

ll de

fine

the

juris

dict

ion

and

dutie

s of

bot

h th

e M

anag

ing

Dire

ctor

and

the

CEO

, the

ir re

spon

sibi

litie

s an

d th

e m

echa

nism

of

thei

r re

port

ing

to t

he C

hairm

an a

nd t

he B

oard

.

• A

ppro

ve D

oha

Bank

’s or

gani

zatio

n st

ruct

ure,

aut

horit

ies

dele

gate

d to

the

Boa

rd

Com

mitt

ees

and

Exec

utiv

e M

anag

emen

t, fi

nanc

ial c

omm

itmen

ts in

exc

ess

of d

eleg

ated

au

thor

ities

to

the

Boar

d C

omm

ittee

s an

d Ex

ecut

ive

Man

agem

ent,

the

rem

uner

atio

n an

d bo

nus

polic

y of

the

CEO

and

sta

ff r

ecom

men

ded

by t

he r

elev

ant

Boar

d C

omm

ittee

, the

st

rate

gic

initi

ativ

es in

clud

ing

new

bus

ines

s in

itiat

ives

and

key

inve

stm

ents

and

div

estit

ures

, an

d pe

riodi

cally

app

rove

the

Ban

k’s

polic

es a

nd p

roce

dure

s’ m

anua

ls. T

he B

oard

sha

ll al

so

appr

ove

the

annu

al D

oha

Bank

bud

get,

the

Boa

rd C

omm

ittee

s’ r

ecom

men

datio

ns, a

nd

the

appo

intm

ent

of t

he C

EO a

nd s

enio

r st

aff

of t

he B

ank

incl

udin

g th

e co

mpl

ianc

e an

d re

port

ing

offic

ers

and

the

Hea

d of

Inte

rnal

Aud

it.

• A

ppro

ve t

he B

ank’

s st

rate

gy a

nd w

ork

on d

evel

opin

g th

e st

rate

gic

plan

and

bus

ines

s ob

ject

ives

on

a pe

riodi

c ba

sis

and

whe

neve

r ne

cess

ary.

• C

reat

e Bo

ard

com

mitt

ees

and

set

thei

r au

thor

ities

and

dut

ies,

and

ann

ually

eva

luat

e th

e w

ork

of t

he B

oard

Com

mitt

ees,

incl

udin

g th

e A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee,

Exec

utiv

e C

omm

ittee

, Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee, P

olic

y, D

evel

opm

ent

and

Rem

uner

atio

n C

omm

ittee

, etc

.

• C

all t

he O

rdin

ary

and

Extr

aord

inar

y G

ener

al A

ssem

bly

for

conv

entio

n, a

nd a

ppro

ve t

he

agen

da o

f bo

th m

eetin

gs, a

nd s

ubm

it re

com

men

datio

ns t

o th

e G

ener

al A

ssem

bly

to

appr

ove

the

prop

osed

cas

h di

vide

nds,

the

rem

uner

atio

n of

the

Cha

irman

and

the

Boa

rd

mem

bers

, the

app

oint

men

t of

the

Ext

erna

l Aud

itor,

the

capi

tal i

ncre

ase,

the

am

endm

ent

of t

he B

ank’

s A

rtic

les

of A

ssoc

iatio

n, a

nd o

ther

issu

es a

s st

ated

in t

he C

omm

erci

al

Com

pani

es’ L

aw.

• M

onito

r th

e fin

anci

al p

erfo

rman

ce o

f th

e Ba

nk a

nd it

s su

bsid

iarie

s, a

nd m

eet

with

th

e Ex

tern

al A

udito

r to

lear

n ab

out

any

exis

ting

subs

tant

ial p

robl

ems

and

wor

k on

re

solv

ing

them

.

• D

iscu

ss w

ith t

he A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee m

atte

rs r

elat

ed t

o in

tern

al a

udit,

A

ML/

CTF

issu

es, Q

CB

repo

rts,

ext

erna

l aud

it, a

nd fi

nanc

ial s

tate

men

ts.

• En

sure

tha

t D

oha

Bank

mai

ntai

ns a

dequ

ate

leve

ls o

f ca

pita

l and

res

erve

s, a

ccor

ding

to

soun

d co

mm

erci

al p

rinci

ples

and

ban

king

reg

ulat

ions

.

5.2:

In a

dditi

on t

o th

e Bo

ard

func

tions

and

res

pons

ibili

ties

as s

et o

ut in

the

Boa

rd C

hart

er, t

he B

oard

sha

ll be

res

pons

ible

for

: ü

5.2.

1: A

ppro

ving

the

com

pany

’s s

trat

egic

obj

ecti

ves,

app

oint

ing

and

repl

acin

g m

anag

emen

t,

sett

ing

fort

h m

anag

emen

t co

mpe

nsat

ion,

rev

iew

ing

man

agem

ent

perf

orm

ance

and

en

suri

ng s

ucce

ssio

n pl

anni

ng c

once

rnin

g th

e co

mpa

ny’s

man

agem

ent.

ü

5.2.

2:

Ensu

ring

the

com

pany

’s co

mpl

ianc

e w

ith r

elat

ed la

ws

and

regu

latio

ns a

s w

ell a

s th

e co

mpa

ny’s

artic

les

of a

ssoc

iatio

n an

d by

-law

s. T

he B

oard

is a

lso

resp

onsi

ble

for

prot

ectin

g th

e C

ompa

ny

from

ille

gal,

abus

ive

or in

appr

opria

te a

ctio

ns a

nd p

ract

ices

. ü

5.3:

The

Boa

rd m

ay d

eleg

ate

som

e of

its

func

tions

and

con

stitu

te s

peci

al c

omm

ittee

s, f

or t

he p

urpo

se o

f un

dert

akin

g sp

ecifi

c op

erat

ions

on

its b

ehal

f. In

thi

s ca

se w

ritte

n an

d cl

ear

inst

ruct

ions

sha

ll be

giv

en

conc

erni

ng t

he d

eleg

ated

fun

ctio

n or

aut

horit

y w

ith t

he r

equi

rem

ent

to o

btai

n th

e Bo

ard’

s pr

ior

appr

oval

on

spec

ific

mat

ters

. In

any

even

t, a

nd e

ven

whe

re t

he B

oard

del

egat

es o

ne o

f its

fun

ctio

ns o

r au

thor

ities

, the

Boa

rd r

emai

ns li

able

for

all

of it

s fu

nctio

ns o

r au

thor

ities

so

dele

gate

d.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 5

Boar

d M

issi

on a

nd

Resp

onsi

bilit

ies

(Con

tinue

d)

• M

ake

enqu

iries

abo

ut p

oten

tial p

robl

ems

that

com

e to

the

Boa

rd’s

atte

ntio

n an

d fo

llow

up

unt

il th

e Bo

ard

is s

atis

fied

that

the

man

agem

ent

is a

ddre

ssin

g th

e is

sues

app

ropr

iate

ly.•

Supe

rvis

e an

d en

sure

the

impl

emen

tatio

n of

pro

per

inte

rnal

con

trol

sys

tem

s, m

ainl

y th

roug

h th

e A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee, a

nd m

onito

r op

erat

ions

and

as

sess

Doh

a Ba

nk’s

perf

orm

ance

and

man

agem

ent

of r

isks

, and

ens

ure

that

nec

essa

ry

and

adeq

uate

fina

ncia

l and

hum

an r

esou

rces

are

in p

lace

to

achi

eve

Doh

a Ba

nk’s

goal

s an

d ob

ject

ives

.•

Ove

rsee

the

ove

rall

corp

orat

e go

vern

ance

of

Doh

a Ba

nk. R

evie

w a

nd a

ppro

ve

gove

rnan

ce p

olic

ies

(incl

udin

g po

licie

s on

con

flict

of

inte

rest

and

insi

der

trad

ing)

, pr

inci

ples

rec

omm

ende

d by

the

Exe

cutiv

e M

anag

emen

t an

d ex

tern

al c

onsu

ltant

s, a

nd

the

Cod

e of

Eth

ics.

• Re

view

the

Ban

k’s

polic

ies,

dire

ctly

or

thro

ugh

a de

lega

ted

com

mitt

ee, p

erio

dica

lly t

o en

sure

tha

t th

ey a

re a

dequ

ate,

sui

tabl

e an

d in

line

with

the

inte

rnal

bus

ines

s ch

ange

s an

d th

e ex

tern

al m

acro

-eco

nom

ic f

acto

rs.

• D

eleg

ate

the

auth

ority

to

the

CEO

of

Doh

a Ba

nk t

o im

plem

ent

Boar

d di

rect

ives

and

re

solu

tions

. The

Boa

rd s

hall

defin

e th

e ju

risdi

ctio

n an

d du

ties

dele

gate

d to

the

CEO

who

sh

ould

rep

ort

to t

he C

hairm

an a

nd t

he B

oard

.•

Ensu

re t

hat

Doh

a Ba

nk is

in c

ompl

ianc

e w

ith it

s A

rtic

les

of A

ssoc

iatio

n an

d ap

plic

able

in

tern

atio

nal a

nd lo

cal l

aws

and

regu

latio

ns in

clud

ing

QC

B re

gula

tions

. Rec

eive

and

re

view

any

lega

l cas

es b

roug

ht a

gain

st t

he B

ank

perio

dica

lly.

• Pr

ovid

e sh

areh

olde

rs w

ith t

imel

y in

form

atio

n to

be

able

to

take

dec

isio

ns in

the

ge

nera

l ass

embl

y. E

nsur

e th

e fa

ir tr

eatm

ent

of a

ll sh

areh

olde

rs w

ithin

the

sam

e cl

ass

in a

ccor

danc

e w

ith t

he la

w. E

nsur

e th

at a

tra

nspa

rent

pro

cess

of

stak

ehol

der

rela

tions

is

in p

lace

incl

udin

g pr

oced

ures

for

dis

clos

ures

and

com

mun

icat

ion,

and

ass

ume

resp

onsi

bilit

ies

tow

ards

sha

reho

lder

s an

d ot

her

stak

ehol

ders

and

rel

ated

par

ties

with

in

Doh

a Ba

nk a

nd t

he c

omm

unity

at

larg

e.•

Ass

ist

man

agem

ent

in a

ddre

ssin

g re

late

d en

titie

s’ is

sues

bro

ught

for

war

d by

res

pect

ive

Boar

d re

pres

enta

tives

.•

App

oint

inde

pend

ent

advi

sors

to

assi

st t

he B

oard

in t

heir

activ

ities

. The

Boa

rd s

houl

d re

ceiv

e ad

equa

te f

undi

ng f

rom

Doh

a Ba

nk f

or in

depe

nden

t ad

viso

rs a

nd t

he r

elat

ed

adm

inis

trat

ive

expe

nses

.

Fin

an

cial

Sta

tem

en

tsTh

e fin

anci

al s

tate

men

ts a

re p

repa

red

by t

he E

xecu

tive

Man

agem

ent.

The

Boa

rd s

hall

revi

ew

and

asse

ss D

oha

Bank

’s Fi

nanc

ial S

tate

men

ts a

nd o

ther

rel

ease

s pr

ior

to a

nnou

ncem

ent

to

shar

ehol

ders

. The

bal

ance

she

et a

nd in

com

e st

atem

ent

shal

l be

sign

ed b

y th

e C

hairm

an o

r th

e M

anag

ing

Dire

ctor

and

CEO

.

Revie

w o

f th

e B

oard

an

d B

oard

Co

mm

itte

es’

Perf

orm

an

ceTh

e Bo

ard

unde

rtak

es o

ngoi

ng s

elf-

asse

ssm

ent

(thr

ough

the

Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee) a

nd a

n an

nual

rev

iew

of

the

Boar

d as

a w

hole

, the

Boa

rd C

omm

ittee

s an

d in

divi

dual

Bo

ard

mem

bers

.

Main

Tra

nsa

ctio

ns

that

Req

uir

e B

oard

Ap

pro

val:

Boar

d au

thor

ities

incl

ude

appr

oval

of

the

follo

win

g tr

ansa

ctio

ns:

• C

redi

t fa

cilit

ies

with

val

ues

abov

e th

e au

thor

ized

lim

its s

et f

or t

he B

oard

Exe

cutiv

e C

omm

ittee

.•

Cre

dit

limits

for

cou

ntrie

s an

d co

rres

pond

ent

bank

s.

• In

vest

men

ts w

ith v

alue

s ab

ove

the

auth

oriz

ed li

mits

set

for

the

Boa

rd E

xecu

tive

Com

mitt

ee.

• A

nnua

l bud

get

of t

he b

ank.

• Ex

pens

es a

bove

the

aut

horiz

ed li

mits

set

for

the

Boa

rd E

xecu

tive

Com

mitt

ee.

• C

redi

t fa

cilit

ies

gran

ted

to t

he B

oard

mem

bers

and

the

ir fa

mili

es

AR

TIC

LE 6

Boar

d M

embe

rs’

Fidu

ciar

y D

utie

s

6-1:

T

he b

oard

of

dire

ctor

s re

pres

ents

all

shar

ehol

ders

and

ow

es t

he C

ompa

ny t

he fi

duci

ary

dutie

s of

car

e an

d co

mpl

ianc

e w

ith t

he in

stitu

tiona

l aut

horit

y se

t ou

t in

rel

ated

law

s an

d re

gula

tions

incl

udin

g th

is

Cod

e an

d th

e Bo

ard

Cha

rter

. ü

Each

Boa

rd m

embe

r ow

es t

he B

ank

by e

mpl

oyin

g di

ligen

ce, l

oyal

ty a

nd in

tegr

ity in

sup

port

of

the

Bank

’s ov

eral

l vis

ion

and

in li

ne w

ith t

he B

oard

Cha

rter

and

the

Ban

k’s

Cod

e of

Eth

ics.

Boa

rd

mem

bers

act

on

an in

form

ed b

asis

in t

he b

est

inte

rest

of

the

Bank

and

in f

ulfil

lmen

t of

the

ir re

spon

sibi

litie

s to

the

Ban

k. B

oard

mem

bers

the

refo

re h

ave

the

requ

ired

know

ledg

e, e

xper

ienc

e an

d sk

ills.

6-2:

B

oard

Mem

bers

mus

t at

all

times

act

on

an in

form

ed b

asis

, in

good

fai

th, w

ith d

ue d

ilige

nce

and

care

, an

d in

the

bes

t in

tere

sts

of t

he C

ompa

ny a

nd a

ll sh

areh

olde

rs.

ü

6-3:

B

oard

Mem

bers

sha

ll ac

t ef

fect

ivel

y to

ful

fill t

heir

resp

onsi

bilit

ies

tow

ards

the

Com

pany

. ü

AR

TIC

LE 7

Sepa

rati

on o

f Po

siti

ons

of

Cha

irm

an a

nd C

EO

7-1:

T

he s

ame

pers

on m

ay n

ot h

old

or e

xerc

ise

the

posi

tions

of

Cha

irman

and

Chi

ef E

xecu

tive

Offi

cer

at t

he

sam

e tim

e or

any

oth

er e

xecu

tive

posi

tion

in t

he c

ompa

ny.

üTh

e C

hairm

an a

nd C

EO d

utie

s an

d re

spon

sibi

litie

s ar

e se

para

ted

in t

he B

ank

and

each

pos

ition

ha

s cl

early

defi

ned

role

s an

d re

spon

sibi

litie

s un

der

its o

wn

Job

Des

crip

tion.

7-2:

I

n al

l circ

umst

ance

s, n

o on

e pe

rson

in t

he C

ompa

ny s

houl

d ha

ve u

nfet

tere

d po

wer

s to

tak

e de

cisi

ons.

.ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 8

Dut

ies

of t

he

Cha

irm

an o

f th

e Bo

ard

8-1:

The

Cha

irman

is re

spon

sible

for e

nsur

ing

the

prop

er fu

nctio

ning

of t

he B

oard

; in

an a

ppro

pria

te a

nd e

ffec

tive

man

ner i

nclu

ding

tim

ely

rece

ipt b

y th

e Bo

ard

Mem

bers

of c

ompl

ete

and

accu

rate

info

rmat

ion.

ü

The

role

of t

he C

hairm

an is

to le

ad D

oha

Bank

in a

chie

ving

its

stra

tegi

c go

als

and

to p

rovi

de it

s sh

areh

olde

rs w

ith s

usta

inab

le g

ains

. The

Cha

irman

als

o le

ads

the

Boar

d an

d ov

erse

es a

ll as

pect

s of

its

role

and

in s

ettin

g its

age

nda.

He

may

del

egat

e sp

ecifi

c du

ties

to B

oard

Mem

bers

, Boa

rd

Com

mitt

ees,

Man

agin

g D

irect

or a

nd C

EO a

s ap

prop

riate

. A

dditi

onal

ly, h

e di

scus

ses

with

boa

rd

mem

bers

rec

omm

enda

tions

, im

prov

emen

ts, s

trat

egic

initi

ativ

es, a

nnua

l bud

gets

, new

inve

stm

ent

oppo

rtun

ities

ava

ilabl

e an

d en

sure

s th

at t

he b

oard

has

per

form

ed it

s as

sign

ed d

utie

s. H

e al

so

disc

usse

s ge

nera

l ban

k is

sues

per

iodi

cally

with

the

mem

bers

, ens

ures

tha

t the

re is

a m

echa

nism

for

eval

uatin

g bo

ard

mem

bers

, and

com

mun

icat

es w

ith s

hare

hold

ers.

The

Cha

irman

als

o co

ordi

nate

s re

gula

rly w

ith t

he C

EO to

ret

ain

the

nece

ssar

y fin

anci

al a

nd h

uman

res

ourc

es to

ach

ieve

the

Ban

k’s

goal

, whi

lst m

onito

ring

perf

orm

ance

per

iodi

cally

thr

ough

the

CEO

.

8-2:

T

he C

hairm

an m

ay n

ot b

e a

mem

ber

of a

ny o

f th

e Bo

ard

com

mitt

ees

pres

crib

ed in

thi

s C

ode.

ü

8-3:

T

he d

utie

s an

d re

spon

sibi

litie

s of

the

Cha

irman

of

the

Boar

d of

Dire

ctor

s sh

all,

in a

dditi

on t

o th

e pr

ovis

ions

of

the

Boar

d C

hart

er, i

nclu

de b

ut n

ot b

e lim

ited

to t

he f

ollo

win

g:ü

8-3-

1: t

o en

sure

that

the

Boar

d di

scus

ses

all t

he m

ain

issue

s in

an

effic

ient

and

tim

ely

man

ner;

ü

8-3-

2: t

o ap

prov

e th

e ag

enda

of e

very

mee

ting

of th

e Bo

ard

of D

irect

ors

taki

ng in

to c

onsid

erat

ion

any

mat

ter p

ropo

sed

by a

ny o

ther

Boa

rd M

embe

r; th

is m

ay b

e de

lega

ted

by th

e C

hairm

an to

a B

oard

M

embe

r but

the

Cha

irman

rem

ains

resp

onsib

le fo

r the

pro

per d

ischa

rge

of th

is du

ty b

y th

e sa

id

Boar

d M

embe

r;

ü

8-3-

3: T

o en

cour

age

all B

oard

Mem

bers

to fu

lly a

nd e

ffec

tivel

y pa

rtic

ipat

e in

dea

ling

with

the

affa

irs o

f th

e Bo

ard

of D

irect

ors

for e

nsur

ing

that

the

Boar

d of

Dire

ctor

s is

wor

king

in th

e be

st in

tere

st o

f th

e C

ompa

ny;

ü

8-3-

4: T

o en

sure

eff

ectiv

e co

mm

unic

atio

n w

ith S

hare

hold

ers

and

com

mun

icat

ion

of th

eir o

pini

ons

to th

e Bo

ard

of D

irect

ors;

ü

8-3-

5: T

o al

low

eff

ectiv

e pa

rtic

ipat

ion

of th

e N

on-E

xecu

tive

Boar

d M

embe

rs in

par

ticul

ar a

nd to

pro

mot

e co

nstr

uctiv

e re

latio

ns b

etw

een

Exec

utiv

e an

d N

on- E

xecu

tive

Boar

d M

embe

rs;

ü

8-3-

6: T

o en

sure

the

cond

uctin

g of

an

annu

al e

valu

atio

n to

the

Boar

d’s

perf

orm

ance

.ü

AR

TIC

LE 9

Boar

d C

ompo

siti

on

9-1:

The

Boa

rd c

ompo

sitio

n sh

all b

e de

term

ined

in t

he c

ompa

ny’s

by-la

ws.

The

Boa

rd s

hall

incl

ude

exec

utiv

e, n

on-e

xecu

tive

and

inde

pend

ent

Boar

d M

embe

rs s

o as

to

ensu

re t

hat

the

Boar

d de

cisi

ons

are

not

dom

inat

ed b

y on

e in

divi

dual

or

a sm

all g

roup

of

indi

vidu

als.

üTh

e Bo

ard

curr

ently

con

sist

s of

sev

en m

embe

rs:

• C

hairm

an;

• V

ice

Cha

irman

;

• M

anag

ing

Dire

ctor

;

• 4

Non

-Exe

cutiv

e di

rect

ors

incl

udin

g on

e in

depe

nden

t di

rect

or w

ho m

eets

QFM

A r

equi

rem

ents

Du

ties

of

the V

ice C

hair

man

The

hold

er o

f th

is p

ositi

on s

hall

assu

me

the

role

of

the

Cha

irman

in h

is a

bsen

ce. H

e w

orks

cl

osel

y w

ith t

he C

hairm

an in

dev

elop

ing

and

over

seei

ng t

he e

xecu

tion

of t

he B

ank’

s st

rate

gies

. A

dditi

onal

ly, h

e sh

all u

nder

take

oth

er r

espo

nsib

ilitie

s as

del

egat

ed b

y th

e C

hairm

an.

Du

ties

of

the M

an

ag

ing

Dir

ect

or

• Su

perv

ise

the

impl

emen

tatio

n of

the

Boa

rd r

esol

utio

ns in

acc

orda

nce

with

Doh

a Ba

nk’s

stra

tegy

and

obj

ectiv

es.

• O

vers

ee t

hat

the

Boar

d re

ceiv

es t

imel

y, a

ccur

ate

and

com

plet

e in

form

atio

n to

ena

ble

soun

d de

cisi

on-m

akin

g, e

ffec

tive

mon

itorin

g an

d ad

visi

ng.

• Si

gn/ c

ount

ersi

gn (e

ndor

se) c

orre

spon

denc

e, r

epor

ts, c

ontr

acts

or

othe

r do

cum

ents

on

beha

lf of

Doh

a Ba

nk.

• Su

perv

ise

the

impl

emen

tatio

n of

str

ateg

ic in

itiat

ives

and

inve

stm

ents

with

in t

he le

vel o

f au

thor

ity d

eleg

ated

by

the

Boar

d.

• A

ppro

ve in

vest

men

ts, c

redi

t fa

cilit

ies

and

expe

nditu

res

with

in t

he le

vel o

f au

thor

ity

dele

gate

d by

the

Boa

rd.

• O

vers

ee t

he im

plem

enta

tion

of k

ey in

itiat

ives

with

in D

oha

Bank

in c

oord

inat

ion

with

the

C

EO a

nd E

xecu

tive

Man

agem

ent.

• Pr

ovid

e th

e Bo

ard

and

the

Boar

d C

omm

ittee

s w

ith t

he r

equi

red

repo

rts

and

disc

losu

res

in a

tim

ely

man

ner

for

revi

ew a

nd a

ppro

val.

• U

pdat

e th

e Bo

ard

with

per

iodi

c re

port

s on

Doh

a Ba

nk’s

perf

orm

ance

and

act

iviti

es.

• Pa

rtic

ipat

e in

var

ious

boa

rd-le

vel c

omm

ittee

s.

• A

ny a

dditi

onal

res

pons

ibili

ty e

ntru

sted

to

him

by

the

Boar

d/ t

he C

hairm

an o

f th

e Bo

ard.

Ind

ep

en

den

t B

oard

Mem

ber

The

curr

ent

com

posi

tion

of t

he B

oard

incl

udes

one

inde

pend

ent

Boar

d m

embe

r w

ho m

eets

Q

FMA

’s re

quire

men

ts b

ut d

oesn

’t m

eet

QC

B’s

requ

irem

ents

. Thi

s is

due

to

the

amen

dmen

t of

the

new

gov

erna

nce

code

issu

ed b

y Q

CB

conc

erni

ng b

anks

dur

ing

the

curr

ent

sess

ion

of B

OD

and

it is

stip

ulat

ed t

hat

the

inde

pend

ent

mem

ber

shou

ldn’

t ow

n m

ore

than

0.2

5%

of t

he b

ank’

s sh

ares

, Kno

win

g th

at t

he o

wne

rshi

p pe

rcen

tage

of

this

mem

ber

at t

he t

ime

of n

omin

atio

n fo

r th

e bo

ard

is n

ot m

ore

than

the

num

ber

of s

hare

s re

quire

d to

ens

ure

his

mem

bers

hip

in t

he b

ank’

s bo

ard.

9-2:

At

leas

t on

e th

ird o

f th

e Bo

ard

Mem

bers

sha

ll be

Inde

pend

ent

Boar

d M

embe

rs a

nd a

maj

ority

of

the

Boar

d M

embe

rs s

hall

be N

on-E

xecu

tive

Boar

d M

embe

rs.

ü

Cur

rent

ly t

here

is o

ne

inde

pend

ent

dire

ctor

, thi

s is

due

to

the

amen

dmen

t of

the

new

gov

erna

nce

code

issu

ed b

y Q

CB

conc

erni

ng b

anks

dur

ing

the

curr

ent

sess

ion

of B

OD

an

d it

is s

tipul

ated

tha

t th

e in

depe

nden

t di

rect

or

shou

ldn’

t ow

n m

ore

than

%

0.25

of

the

bank

’s sh

ares

.

9-3:

Boa

rd M

embe

rs s

hall

have

ade

quat

e ex

pert

ise

and

know

ledg

e to

eff

ectiv

ely

perf

orm

the

ir fu

nctio

ns

in t

he b

est

inte

rest

of

the

Com

pany

and

the

y sh

all g

ive

suffi

cien

t tim

e an

d at

tent

ion

to t

heir

role

with

in

tegr

ity a

nd t

rans

pare

ncy

to a

chie

ve t

he c

ompa

ny’s

inte

rest

and

goa

ls.

ü

9-4:

The

can

dida

te f

or t

he p

ositi

on o

f in

depe

nden

t bo

ard

mem

ber

shal

l not

be

hold

ing

a sh

are

in t

he

com

pany

’s ca

pita

l tha

t ex

ceed

s th

e nu

mbe

r of

sha

res

requ

ired

to s

ecur

e hi

s m

embe

rshi

p in

the

co

mpa

ny’s

boar

d.ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 1

0N

on-E

xecu

tive

Bo

ard

Mem

bers

10-1

: D

utie

s of

the

Non

-Exe

cutiv

e Bo

ard

Mem

bers

incl

ude

but

are

not

limite

d to

the

fol

low

ing:

ü

Du

ties

of

the N

on

-Execu

tive/ I

nd

ep

en

den

t B

oard

Mem

ber

• W

ork

activ

ely

on p

rovi

ding

info

rmat

ion

requ

ired

for

the

Boar

d to

und

erta

ke it

s ac

tiviti

es

as s

tipul

ated

in t

he B

oard

of

Dire

ctor

s’ T

erm

s of

Ref

eren

ce.

• A

ssis

t in

Doh

a Ba

nk’s

stra

tegi

c pl

anni

ng a

nd b

usin

ess

plan

ning

pro

cess

es a

nd

cons

truc

tivel

y ch

alle

nge

and

deve

lop

stra

tegi

c pr

opos

als.

• Re

view

Doh

a Ba

nk’s

perf

orm

ance

per

iodi

cally

and

scr

utin

ize

the

perf

orm

ance

of

man

agem

ent

in a

chie

ving

agr

eed

goal

s an

d ob

ject

ives

.

• Re

view

the

inte

grity

of

finan

cial

info

rmat

ion

and

mon

itor

that

fina

ncia

l con

trol

s an

d sy

stem

s of

ris

k m

anag

emen

t ar

e ro

bust

and

def

ensi

ble.

• Sp

earh

ead

the

deve

lopm

ent

of D

oha

Bank

’s C

orpo

rate

Gov

erna

nce

polic

ies

and

mon

itor

com

plia

nce

to t

he s

ame.

• A

ssis

t th

e Bo

ard

to p

rope

rly a

tten

d to

the

Ext

erna

l Aud

itor’s

rep

ort.

• O

vers

ee t

hat

Bank

and

Sha

reho

lder

inte

rest

s ar

e m

aint

aine

d, e

spec

ially

in c

onfli

ct o

f in

tere

st s

ituat

ions

bet

wee

n ex

ecut

ive

mem

bers

and

oth

er m

embe

rs.

• Be

ava

ilabl

e to

sha

reho

lder

s if

they

hav

e co

ncer

ns w

hich

hav

e no

t or

can

not

be

reso

lved

thr

ough

con

tact

with

the

Cha

irman

, MD

and

the

CEO

or

if su

ch c

onta

ct is

no

t ap

prop

riate

.

• A

ct a

s a

supp

lier

to t

he B

oard

for

the

com

mun

icat

ion

of s

hare

hold

er c

once

rns

whe

n ot

her

chan

nels

of

com

mun

icat

ion

are

inap

prop

riate

.

• A

ny a

dditi

onal

res

pons

ibili

ty e

ntru

sted

by

the

Boar

d/ B

oard

Cha

irman

.

• Be

col

lect

ivel

y re

spon

sibl

e fo

r th

e Bo

ard

deci

sion

s an

d ac

tions

.

• Pa

rtic

ipat

e in

var

ious

Com

mitt

ees

incl

udin

g th

e A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee,

Polic

ies,

Dev

elop

men

t an

d Re

mun

erat

ion

and

Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee.

10-1

-1:

par

ticip

atio

n in

the

mee

tings

of

the

Boar

d of

Dire

ctor

s an

d pr

ovid

ing

inde

pend

ent

opin

ion

on s

trat

egic

mat

ters

, pol

icy,

per

form

ance

, acc

ount

abili

ty, r

esou

rces

, key

app

oint

men

ts a

nd

oper

atio

n st

anda

rds;

ü

10-1

-2:

ens

urin

g th

at p

riorit

y sh

all b

e gi

ven

to t

he c

ompa

ny’s

and

Shar

ehol

ders

’ int

eres

ts in

cas

e of

co

nflic

t of

inte

rest

s;

ü

10-1

-3:

par

ticip

atio

n in

the

com

pany

’s A

udit

Com

mitt

ee;

ü

10-1

-4:

mon

itorin

g th

e co

mpa

ny’s

perf

orm

ance

in r

ealiz

ing

its a

gree

d ob

ject

ives

and

goa

ls a

nd

revi

ewin

g its

per

form

ance

rep

orts

incl

udin

g th

e co

mpa

ny’s

annu

al, h

alf

year

ly a

nd q

uart

erly

re

port

s; a

ndü

10-1

-5:

Sup

ervi

sing

the

dev

elop

men

t of

the

pro

cedu

ral r

ules

for

the

com

pany

’s co

rpor

ate

gove

rnan

ce f

or e

nsur

ing

thei

r im

plem

enta

tion

in a

con

sist

ent

man

ner;

and

ü

10-1

-6:

Ava

iling

the

Boar

d of

Dire

ctor

s an

d its

diff

eren

t Com

mitt

ees

of th

eir s

kills

, exp

erie

nces

, di

vers

ified

spe

cial

ties

and

qual

ifica

tions

thro

ugh

regu

lar p

rese

nce

in th

e Bo

ard

mee

tings

an

d ef

fect

ive

part

icip

atio

n in

the

Gen

eral

Ass

embl

ies

and

the

acqu

isitio

n of

a b

alan

ced

unde

rsta

ndin

g of

Sha

reho

lder

s’ o

pini

ons.

ü

10-2

: A m

ajor

ity o

f th

e N

on-E

xecu

tive

Boar

d M

embe

rs m

ay r

eque

st t

he o

pini

on o

f an

inde

pend

ent

cons

ulta

nt, i

n re

latio

n to

any

of

the

com

pany

’s af

fairs

, at

the

com

pany

’s ex

pens

e.ü

AR

TIC

LE 1

1Bo

ard

Mee

ting

s

11-1

: The

Boa

rd o

f D

irect

ors

shal

l hol

d m

eetin

gs r

egul

arly,

so

as t

o en

sure

tha

t th

e Bo

ard

is e

ffec

tivel

y pe

rfor

min

g its

dut

ies.

The

Boa

rd s

hall

mee

t at

leas

t si

x tim

es d

urin

g a

year

and

onc

e ev

ery

two

mon

ths.

üTh

e Bo

ard

mee

ts b

ased

on

the

invi

tatio

n of

the

Cha

irman

or

two

mem

bers

of

the

Boar

d.

Each

Boa

rd m

eetin

g ha

s an

age

nda

whi

ch is

sub

mitt

ed t

o al

l mem

bers

prio

r to

the

mee

ting

givi

ng e

noug

h tim

e fo

r pr

epar

atio

n pu

rpos

es.

As

per

the

Boar

d C

hart

er, t

he B

oard

mee

ts a

m

inim

um o

f 6

times

a y

ear.

The

Boar

d m

et a

tot

al o

f si

x tim

es in

201

6, la

st m

eetin

g w

as h

eld

on 1

6/11

/201

6.

11-2

: The

Boa

rd s

hall

mee

t w

hen

conv

ened

by

its C

hairm

an o

r up

on t

he w

ritte

n re

ques

t of

tw

o Bo

ard

Mem

bers

. The

invi

tatio

n fo

r th

e Bo

ard

mee

ting

and

agen

da s

hall

be c

omm

unic

ated

to

each

Boa

rd

Mem

ber

at le

ast

one

wee

k be

fore

the

dat

e of

the

mee

ting,

not

ing

that

any

Boa

rd M

embe

r m

ay a

dd

any

item

to

the

agen

da.

ü

AR

TIC

LE 1

2Bo

ard

Secr

etar

y

12-1

: The

Boa

rd s

hall

appo

int

a Bo

ard

Secr

etar

y w

hose

fun

ctio

ns s

hall

incl

ude

reco

rdin

g th

e m

inut

es a

nd

reso

lutio

ns o

f th

e Bo

ard

mee

tings

in a

spe

cial

ser

ially

num

bere

d lo

g in

add

ition

to

the

boar

d m

embe

rs’

pres

ence

and

res

erva

tions

, and

saf

ekee

ping

rec

ords

, boo

ks a

nd r

epor

ts s

ubm

itted

by

or t

o th

e Bo

ard.

U

nder

the

dire

ctio

n of

the

Cha

irman

, the

Boa

rd S

ecre

tary

sha

ll al

so b

e in

cha

rge

of e

nsur

ing

timel

y ac

cess

to

and

dist

ribut

ion

of t

he m

eetin

g’s

wor

k pa

per,

docu

men

ts, i

nfor

mat

ion

and

the

agen

da, a

nd

coor

dina

tion

amon

g th

e Bo

ard

Mem

bers

as

wel

l as

betw

een

the

Boar

d an

d th

e ot

her

stak

ehol

ders

in

the

com

pany

incl

udin

g sh

areh

olde

rs, m

anag

emen

t, a

nd e

mpl

oyee

s.

ü

Lega

l Adv

isor

and

Sec

reta

ry t

o th

e Bo

ard

is p

erfo

rmin

g th

e du

ties

of B

oard

sec

reta

ry a

nd m

aint

ains

al

l Boa

rd d

ocum

enta

tion

and

man

ages

the

ove

rall

proc

esse

s re

late

d to

boa

rd m

eetin

gs. T

he B

oard

Se

cret

ary

repo

rts

dire

ctly

to

the

Cha

irman

, how

ever

, all

mem

bers

may

use

the

sec

reta

ry’s

serv

ices

.

12-2

: The

Boa

rd S

ecre

tary

sha

ll en

sure

tha

t Bo

ard

Mem

bers

hav

e fu

ll an

d tim

ely

acce

ss t

o th

e m

inut

es o

f al

l Bo

ard

mee

tings

, inf

orm

atio

n, d

ocum

ents

, and

reco

rds

pert

aini

ng t

o th

e C

ompa

ny.

ü

12-3

: All

Boar

d M

embe

rs s

hall

have

acc

ess

to t

he s

ervi

ces

and

advi

ce o

f th

e Bo

ard

Secr

etar

y.ü

12-4

: The

Boa

rd S

ecre

tary

may

onl

y be

app

oint

ed o

r re

mov

ed b

y a

Boar

d re

solu

tion.

ü

12-5

: The

Boa

rd S

ecre

tary

sho

uld

pref

erab

ly b

e a

mem

ber

of a

rec

ogni

zed

body

of

prof

essi

onal

acc

ount

ants

, or

a m

embe

r of

a r

ecog

nize

d or

cha

rter

ed b

ody

of c

orpo

rate

sec

reta

ries,

or

a la

wye

r or

a g

radu

ate

from

a

reco

gniz

ed u

nive

rsity

or

equi

vale

nt. H

e sh

ould

hav

e at

leas

t th

ree

year

s ex

perie

nce

of h

andl

ing

the

affa

irs o

f a

publ

ic c

ompa

ny li

sted

in t

he m

arke

t.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

13

)C

onfli

ct o

f in

tere

st

and

Insi

der

Trad

ing

13-1

: The

Com

pany

sha

ll ad

opt

and

mak

e pu

blic

gen

eral

rul

es a

nd p

roce

dure

s go

vern

ing

the

Com

pany

’s en

terin

g in

to a

ny c

omm

erci

al t

rans

actio

n w

ith a

Rel

ated

Par

ty (t

he C

ompa

ny’s

“Rel

ated

Par

ty P

olic

y”).

In a

ny e

vent

, it

shal

l not

be

perm

itted

to

ente

r in

to a

ny c

omm

erci

al t

rans

actio

n w

ith a

ny R

elat

ed P

arty

un

less

in s

tric

t co

mpl

ianc

e w

ith t

he a

fore

men

tione

d Re

late

d Pa

rty

Polic

y. T

he s

aid

polic

y sh

all i

nclu

de

prin

cipl

es o

f tr

ansp

aren

cy, f

airn

ess

and

disc

losu

re in

add

ition

to

the

requ

irem

ent

that

a r

elat

ed p

arty

tr

ansa

ctio

n be

app

rove

d by

the

Gen

eral

Ass

embl

y of

the

com

pany

.

üD

oha

Bank

has

set

in p

lace

sev

eral

con

trol

s to

pre

vent

con

flict

of

inte

rest

situ

atio

ns f

rom

oc

curr

ing.

Spe

cific

ally,

the

Ban

k ha

s ad

opte

d a

rela

ted

part

y po

licy

whi

ch w

ill b

e pu

blis

hed

to s

hare

hold

ers

in t

he n

ear

futu

re.

Rela

ted

part

y tr

ansa

ctio

ns a

re a

ppro

ved

by t

he B

oard

/M

anag

emen

t ba

sed

on m

ater

ialit

y. A

s pe

r C

omm

erci

al C

ompa

nies

Law

, if

a Bo

ard

Mem

ber

has

a co

nflic

t, h

e do

es n

ot p

artic

ipat

e in

the

Boa

rd M

eetin

g or

par

ticip

ate

in r

esol

utio

ns p

asse

d by

ci

rcul

atio

n. I

t is

als

o w

orth

not

ing

that

the

Ban

k ha

s ad

opte

d a

confl

ict

of in

tere

st p

olic

y w

hich

m

ust

be c

ompl

ied

with

by

all e

mpl

oyee

s of

the

Ban

k.C

urre

ntly,

mon

itorin

g an

d co

ntro

ls o

n in

side

r tr

adin

g ar

e do

ne b

y Q

atar

Exc

hang

e di

rect

ly. A

po

licy

on in

side

r tr

adin

g ha

s be

en a

dopt

ed b

y th

e Ba

nk.

Rela

ted

Part

y T

ran

sact

ion

sIn

gen

eral

, any

sta

ff o

r bo

ard

mem

ber

shal

l be

cons

ider

ed a

s a

rela

ted

part

y up

on c

arry

ing

out

com

mer

cial

ope

ratio

ns f

or D

oha

Bank

with

one

of

the

fam

ily m

embe

rs o

r an

y bu

sine

ss r

unni

ng

by o

ne o

f th

e fa

mily

mem

bers

.

Ap

pro

val

of

Rela

ted

Part

y T

ran

sact

ion

sTh

e st

aff

or b

oard

mem

ber

shal

l dis

clos

e th

e re

late

d pa

rty

tran

sact

ions

and

sha

ll ob

tain

a

writ

ten

appr

oval

fro

m t

he b

ank’

s Ex

ecut

ive

Com

mitt

ee. R

egar

ding

the

boa

rd m

embe

rs, t

he

rela

ted

part

ies

shal

l be

disc

lose

d an

d di

scus

sed

durin

g th

e bo

ard

mee

ting

in t

he a

bsen

ce o

f th

e co

ncer

ned

mem

ber,

and

shal

l be

subm

itted

dur

ing

the

Gen

eral

Ass

embl

y M

eetin

g fo

llow

ing

the

date

of

tran

sact

ion.

Dis

clo

sure

of

Rela

ted

Part

y T

ran

sact

ion

sTh

e ba

nk’s

polic

y pr

ohib

its t

he C

hairm

an, b

oard

mem

bers

and

exe

cutiv

e m

anag

ers

from

car

ryin

g ou

t an

y se

lling

or

buyi

ng t

rans

actio

ns f

or t

he b

ank’

s sh

ares

dur

ing

the

perio

d se

t by

Qat

ar

Exch

ange

and

eve

n pu

blis

hing

fina

ncia

l sta

tem

ents

to

the

publ

ic, k

now

ing

that

no

rela

ted

part

y ha

s co

nclu

ded

any

tran

sact

ions

in t

he p

rohi

bitio

n pe

riods

dur

ing

the

year

.

13-2

: Whe

neve

r an

issu

e in

volv

ing

confl

ict

of in

tere

sts

or a

ny c

omm

erci

al t

rans

actio

n be

twee

n th

e C

ompa

ny

and

any

of it

s Bo

ard

Mem

bers

or

any

Part

y re

late

d to

sai

d Bo

ard

Mem

ber,

is d

iscu

ssed

in a

Boa

rd

mee

ting,

the

sai

d is

sue

shal

l be

disc

usse

d in

the

abs

ence

of

the

conc

erne

d Bo

ard

Mem

ber

who

may

no

t in

any

eve

nt p

artic

ipat

e in

the

vot

ing

on t

he m

atte

r. In

any

eve

nt, s

uch

tran

sact

ion

shal

l be

mad

e at

mar

ket

pric

es a

nd o

n ar

m’s

leng

th b

asis

and

sha

ll no

t in

volv

e te

rms

that

are

con

trar

y to

the

inte

rest

s of

the

Com

pany

.

ü

13-3

: In

any

even

t th

ese

tran

sact

ions

sha

ll be

dis

clos

ed in

the

com

pany

’s an

nual

rep

ort

and

spec

ifica

lly

refe

rred

to

in t

he g

ener

al a

ssem

bly

follo

win

g su

ch c

omm

erci

al t

rans

actio

ns.

ü

13-4

: Tra

ding

by

the

Boar

d M

embe

rs in

the

com

pany

’s sh

ares

and

oth

er s

ecur

ities

sha

ll be

dis

clos

ed a

nd

the

com

pany

sha

ll ad

opt

clea

r ru

les

and

proc

edur

es g

over

ning

tra

ding

by

the

boar

d m

embe

r an

d em

ploy

ees

in t

he c

ompa

ny’s

secu

ritie

s.ü

AR

TIC

LE (

14

) O

ther

Boa

rd

Prac

tice

s an

d D

utie

s

14-1

: Boa

rd M

embe

rs s

hall

have

ful

l and

imm

edia

te a

cces

s to

info

rmat

ion,

doc

umen

ts, a

nd r

ecor

ds

pert

aini

ng t

o th

e C

ompa

ny in

a w

ay t

hat

enab

le t

hem

to

perf

orm

the

ir du

ties,

and

sha

ll be

ful

ly

awar

e of

all

aspe

cts

of w

ork.

The

Com

pany

’s ex

ecut

ive

man

agem

ent

shal

l pro

vide

the

Boa

rd a

nd it

s co

mm

ittee

s w

ith a

ll re

ques

ted

docu

men

ts a

nd in

form

atio

n.

ü

BO

D’s

Task

s &

Oth

er

Du

ties:

C

on

sult

an

cy:

The

Boar

d m

ay c

onsu

lt at

the

Ban

k’s

expe

nse

any

inde

pend

ent

expe

rt o

r co

nsul

tant

. It

is

perm

itted

for

the

Boa

rd M

embe

rs t

o ob

tain

pro

fess

iona

l adv

ice

at t

he c

ost

of t

he B

ank

with

the

ap

prov

al o

f th

e Bo

ard.

Acc

ess

to

do

cum

en

tati

on

: A

s de

fined

in t

he B

oard

Cha

rter

, Boa

rd M

embe

rs s

hall

have

ful

l and

imm

edia

te a

cces

s to

in

form

atio

n, d

ocum

ents

, and

rec

ords

per

tain

ing

to t

he B

ank.

The

Ban

k’s

Exec

utiv

e M

anag

emen

t sh

all p

rovi

de t

he B

oard

and

its

com

mitt

ees

with

all

requ

este

d do

cum

ents

and

info

rmat

ion

pert

aini

ng t

o Bo

ard

deci

sion

s.N

om

inati

on

s:Th

e Ba

nk h

as e

stab

lishe

d a

syst

em f

or t

he n

omin

atio

n/ap

poin

tmen

t of

Boa

rd M

embe

rs.

As

per

the

Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee’s

role

s an

d re

spon

sibi

litie

s, t

he c

omm

ittee

sho

uld

cons

ider

ter

ms,

qua

lifica

tions

and

exp

erie

nce

requ

ired

for

a no

min

ee t

o ta

ke a

n ac

tive

role

as

a Bo

ard

Mem

ber.

Hen

ce, t

he c

omm

ittee

will

det

erm

ine

the

stan

dard

s ne

cess

ary

to e

lect

any

ne

w B

oard

Mem

ber.

Train

ing

Pro

gra

ms:

Th

e Ba

nk h

as p

ut in

pla

ce C

orpo

rate

Gov

erna

nce

Polic

ies

whi

ch in

clud

e pr

inci

ples

for

gui

ding

an

d tr

aini

ng n

ew B

oard

Mem

bers

. The

Ban

k ha

s en

rolle

d Bo

ard

Mem

bers

in a

tra

inin

g co

urse

on

Cor

pora

te G

over

nanc

e.G

overn

an

ce:

The

Boar

d w

ill b

e co

ntin

uous

ly u

pdat

ed o

n go

vern

ance

pra

ctic

es t

hrou

gh t

he M

anag

emen

t an

d th

e Bo

ard

Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee.

Dis

mis

sal:

M

embe

rs w

ho d

o no

t at

tend

Boa

rd m

eetin

gs o

n a

regu

lar

basi

s w

ithou

t an

acc

epta

ble

excu

se

may

be

rem

oved

in a

ccor

danc

e w

ith D

oha

Bank

’s A

rtic

les

of A

ssoc

iatio

n.Self

-Ass

ess

men

t:Te

mpl

ates

and

too

ls h

ave

been

app

rove

d to

per

form

an

annu

al s

elf-

asse

ssm

ent

by t

he B

oard

.R

em

un

era

tio

n:

The

Boar

d es

timat

es t

he E

xecu

tive

Man

agem

ent’s

rem

uner

atio

ns b

ased

on

the

Bank

’s ov

eral

l pe

rfor

man

ce a

nd o

n th

e ex

tent

to

whi

ch t

he g

oals

sta

ted

in t

he B

ank’

s st

rate

gy a

re a

chie

ved.

Pass

ing

of

Bo

ard

Reso

luti

on

s b

y C

ircu

lati

on

: Fr

om t

ime

to t

ime

Boar

d Re

solu

tions

may

be

pass

ed b

y ci

rcul

atio

n w

ith t

he a

ppro

val o

f th

e m

ajor

ity o

f th

e Bo

ard

Mem

bers

in w

ritin

g an

d su

bmitt

ed t

o th

e Bo

ard

of D

irect

ors

for

endo

rsem

ent

in t

he f

ollo

win

g m

eetin

g. W

ith r

egar

d to

suc

h re

solu

tions

pas

sed

by c

ircul

atio

n,

the

Bank

’s A

rtic

les

of A

ssoc

iatio

n ar

e un

der

amen

dmen

t to

be

in li

ne w

ith t

he n

ew C

omm

erci

al

Com

pani

es L

aw.

.

14-2

: The

Boa

rd M

embe

rs s

hall

ensu

re t

hat

the

Nom

inat

ion,

Rem

uner

atio

n an

d th

e A

udit

Com

mitt

ee m

embe

rs,

the

Inte

rnal

Aud

it an

d re

pres

enta

tives

of

the

Exte

rnal

Aud

itors

att

end

the

Gen

eral

Ass

embl

y.

ü

14-3

: The

Boa

rd s

hall

put

in p

lace

an

indu

ctio

n pr

ogra

m f

or n

ewly

app

oint

ed B

oard

Mem

bers

in o

rder

to

ensu

re t

hat,

upo

n th

eir

elec

tion,

Boa

rd M

embe

rs a

re m

ade

fully

aw

are

of t

heir

resp

onsi

bilit

ies,

and

ha

ve p

rope

r un

ders

tand

ing

of t

he m

anne

r in

whi

ch t

he C

ompa

ny o

pera

tes.

ü

14-4

: The

Boa

rd M

embe

rs a

re r

espo

nsib

le f

or h

avin

g an

app

ropr

iate

und

erst

andi

ng o

f th

eir

role

and

dut

ies,

an

d fo

r ed

ucat

ing

them

selv

es in

fina

ncia

l, bu

sine

ss, a

nd in

dust

ry p

ract

ices

as

wel

l as

the

Com

pany

’s op

erat

ions

and

fun

ctio

ning

. In

this

res

pect

, the

Boa

rd s

hall

adop

t an

app

ropr

iate

for

mal

tra

inin

g to

en

hanc

e Bo

ard

Mem

bers

’ ski

lls a

nd k

now

ledg

e.

ü

14-5

: The

Boa

rd o

f D

irect

ors

shal

l at

all t

imes

kee

p its

Mem

bers

upd

ated

abo

ut t

he la

test

dev

elop

men

ts in

the

ar

ea o

f co

rpor

ate

gove

rnan

ce a

nd b

est

prac

tices

rel

atin

g th

eret

o. T

he B

oard

may

del

egat

e th

e sa

me

to

the

audi

t co

mm

ittee

or

the

gove

rnan

ce c

omm

ittee

or

any

othe

r bo

dy a

s it

deem

s ap

prop

riate

. ü

14-6

: The

Com

pany

’s ar

ticle

s of

ass

ocia

tion

shal

l inc

lude

cle

ar p

roce

dure

s fo

r re

mov

ing

Boar

d M

embe

rs in

the

ev

ent

of f

ailin

g to

att

end

Boar

d m

eetin

gs.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

15

)

Boa

rd’s

C

omm

itte

es

The

Boar

d of

Dire

ctor

s sh

all a

sses

s th

e ad

vant

ages

of

esta

blis

hing

affi

liate

d sp

ecia

lized

com

mitt

ees

to s

uper

vise

the

con

duct

of

the

impo

rtan

t fu

nctio

ns, a

nd w

hen

a de

cisi

on is

tak

en c

once

rnin

g th

e co

mm

ittee

s th

at w

ill b

e se

lect

ed; t

he B

oard

of

Dire

ctor

s sh

all t

ake

into

con

side

ratio

n th

e co

mm

ittee

s m

entio

ned

in t

his

Cod

e.

ü

The

bank

has

Boa

rd c

omm

ittee

s as

fol

low

s:•

Nom

inat

ion

and

Gov

erna

nce

Com

mitt

ee•

Polic

ies,

Dev

elop

men

t an

d Re

mun

erat

ion

com

mitt

ee

• A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee•

Exec

utiv

e C

omm

ittee

Execu

tive C

om

mit

tee

Mem

bers

hip

:

Shei

kh F

ahad

Bin

Moh

amm

ad B

in J

abor

Al T

hani

– C

hairm

an o

f th

e Bo

ard

of D

irect

ors

(Com

mitt

ee C

hairm

an).

He

atte

nded

all

the

Com

mitt

ee m

eetin

gs.

Mr.

Ahm

ed A

bdul

Reh

man

You

sef

Obe

idan

– V

ice

Cha

irman

. He

atte

nded

all

mee

tings

.

Shei

kh A

bdul

Rah

man

Bin

Moh

amm

ad B

in J

abor

Al T

hani

– M

anag

ing

Dire

ctor

. He

atte

nded

al

l Com

mitt

ee m

eetin

gs.

Shei

kh F

alah

Bin

Jas

sim

Bin

Jab

or A

l Tha

ni –

Non

-Exe

cutiv

e Bo

ard

Mem

ber.

He

atte

nded

all

the

Com

mitt

ee m

eetin

gs.

Meeti

ng

s: T

he r

equi

red

num

ber

of m

eetin

gs a

s pe

r th

e C

ode

is a

t le

ast

four

tim

es a

yea

r, or

w

hene

ver

requ

este

d by

the

Com

mitt

ee C

hairm

an. T

wo

mee

tings

wer

e he

ld d

urin

g th

e ye

ar.

Ro

les

an

d R

esp

on

sib

ilit

ies:

• Re

view

cha

nges

rel

atin

g to

Doh

a Ba

nk’s

capi

tal s

truc

ture

and

sig

nific

ant

chan

ges

to t

he m

anag

emen

t an

d co

ntro

l str

uctu

re o

f D

oha

Bank

, rec

omm

end

to t

he B

oard

fo

r ap

prov

al.

• Fa

cilit

ate

the

effe

ctiv

e su

perv

isio

n an

d ov

eral

l con

trol

of

the

busi

ness

of

the

Bank

by

rece

ivin

g an

d re

view

ing

over

all c

usto

mer

cre

dit,

inte

r-gr

oup

and

inve

stm

ent

expo

sure

s.•

App

rove

cre

dit

faci

litie

s ab

ove

the

auth

oriz

ed li

mit

set

for

man

agem

ent

up t

o th

e Ex

ecut

ive

Com

mitt

ee li

mit

dele

gate

d by

the

Boa

rd o

f D

irect

ors.

• Re

view

cre

dit

prop

osal

s ab

ove

the

Exec

utiv

e C

omm

ittee

lim

it an

d pr

ovid

e re

com

men

datio

ns o

n re

view

ed p

ropo

sals

to

the

Boar

d of

Dire

ctor

s.•

Reco

mm

end

to t

he B

oard

of

Dire

ctor

s ap

prop

riate

act

ion

pert

aini

ng t

o th

e im

paire

d in

debt

edne

ss c

ases

or

oblig

atio

n ab

ove

the

dele

gate

d lim

it.•

Revi

ew o

n a

quar

terly

bas

is t

he s

tatu

s of

pen

ding

litig

atio

n m

atte

rs.

• A

ppro

ve p

urch

ase

and

expe

nditu

re f

or a

mou

nts

with

in t

he li

mit

dele

gate

d to

the

C

omm

ittee

by

the

Boar

d of

Dire

ctor

s.•

App

rove

don

atio

ns f

or c

harit

y ac

tiviti

es a

nd c

orpo

rate

soc

ial r

espo

nsib

ility

exp

endi

ture

s on

a c

ase-

by-c

ase

basi

s in

line

with

the

del

egat

ed li

mits

to

the

Com

mitt

ee a

s ap

prov

ed

by t

he B

oard

of

Dire

ctor

s an

d th

e co

rpor

ate

soci

al r

espo

nsib

ility

str

ateg

y.•

Revi

ew a

nd a

ppro

ve s

trat

egic

and

com

mer

cial

inve

stm

ents

with

in t

he C

omm

ittee

’s de

lega

tion.

• O

vers

ee t

he p

erfo

rman

ce o

f st

rate

gic

inve

stm

ents

by

perio

dica

lly r

ecei

ving

rep

orts

fro

m

man

agem

ent

and

repo

rtin

g to

the

Boa

rd.

AR

TIC

LE (

16

)

Boa

rd M

embe

rs

App

oint

men

t -

The

Nom

inat

ion

Com

mit

tee

16-1

: Nom

inat

ions

and

app

oint

men

ts o

f Bo

ard

Mem

bers

sha

ll be

mad

e ac

cord

ing

to f

orm

al, r

igor

ous

and

tran

spar

ent

proc

edur

es.

ü

The B

an

k h

as

a B

oard

No

min

ati

on

an

d G

overn

an

ce C

om

mit

tee a

s fo

llo

ws:

Mem

bers

hip

:M

anag

ing

Dire

ctor

(Cha

irman

of

Com

mitt

ee) a

nd 2

Non

-Exe

cutiv

e Bo

ard

Mem

bers

(Mem

bers

)Sh

eikh

Abd

ul R

ahm

an B

in M

oham

mad

Bin

Jab

or A

l Tha

ni –

Man

agin

g D

irect

or (C

hairm

an).

He

atte

nded

the

Com

mitt

ee’s

mee

ting.

Shei

kh A

bdul

la M

oham

mad

Bin

Jab

or A

l Tha

ni –

Non

-Exe

cutiv

e Bo

ard

Mem

ber.

He

atte

nded

th

e C

omm

ittee

’s m

eetin

g.

Mr.

Ham

ad M

oham

med

Ham

ad A

bdul

lah

Al M

ana

– N

on-E

xecu

tive

Boar

d M

embe

r. H

e at

tend

ed t

he C

omm

ittee

’s m

eetin

g.

Meeti

ng

s: O

ne m

eetin

g w

as h

eld

as p

er t

he G

over

nanc

e C

ode

requ

irem

ents

.

Ro

les

an

d R

esp

on

sib

ilit

ies:

The

Com

mitt

ee r

evie

ws

the

nom

inat

ions

for

the

Boa

rd o

f D

irect

ors’

mem

bers

hip

and

mon

itors

the

adh

eren

ce t

o co

rpor

ate

gove

rnan

ce p

rinci

ples

at

Doh

a Ba

nk. I

t al

so id

entifi

es a

nd n

omin

ates

new

mem

bers

for

the

Boa

rd w

ho h

ave

the

abili

ty t

o m

ake

soun

d de

cisi

ons

on b

ehal

f of

the

ban

k an

d sh

areh

olde

rs. T

he C

omm

ittee

tak

es in

to a

ccou

nt t

he

avai

labi

lity

of a

suf

ficie

nt n

umbe

r of

pot

entia

l can

dida

tes

who

can

per

form

the

ir du

ties

as B

oard

M

embe

rs. I

t al

so a

sses

ses

thei

r sk

ills,

kno

wle

dge

and

expe

rienc

e as

wel

l as

thei

r pr

ofes

sion

al,

tech

nica

l, an

d ac

adem

ic q

ualifi

catio

ns a

nd t

heir

pers

onal

ity. T

he C

omm

ittee

eva

luat

es t

he

cand

idat

es f

or t

he m

embe

rshi

p of

the

Boa

rd b

ased

on

crite

ria in

clud

ing

inte

grity

, ins

ight

, ac

quire

d ex

perie

nce

and

the

abili

ty t

o de

vote

suf

ficie

nt t

ime

to m

anag

e th

e Ba

nk’s

affa

irs.

The

bank

was

una

ble

to f

ulfil

th

e re

quire

men

t of

hav

ing

inde

pend

ent

mem

bers

as

the

com

mitt

ee is

cur

rent

ly c

haire

d by

an

Exec

utiv

e M

embe

r an

d tw

o no

n- e

xecu

tive

and

non-

inde

pend

ent

mem

bers

Doh

a Ba

nk w

ill c

onsi

der

chan

ging

the

com

posi

tion

of t

his

com

mitt

ee a

ccor

ding

to

the

req

uire

men

ts o

f go

vern

ance

in t

he f

utur

e,

if po

ssib

le.

16-2

: The

Boa

rd s

hall

cons

titut

e a

Nom

inat

ion

Com

mitt

ee c

haire

d by

an

Inde

pend

ent

Boar

d M

embe

r an

d co

mpr

ised

of

Inde

pend

ent

Boar

d M

embe

rs w

hich

sha

ll re

com

men

d Bo

ard

Mem

bers

’ app

oint

men

ts a

nd

re-n

omin

atio

n fo

r el

ectio

n by

the

Gen

eral

Ass

embl

y (f

or t

he a

void

ance

of

doub

t, n

omin

atio

n by

the

C

omm

ittee

doe

s no

t de

priv

e an

y sh

areh

olde

r of

his

rig

hts

to n

omin

ate

or t

o be

nom

inat

ed).

ü

16-3

: Nom

inat

ions

sha

ll ta

ke in

to a

ccou

nt in

ter

alia

the

can

dida

tes’

suf

ficie

nt a

vaila

bilit

y to

per

form

the

ir du

ties

as B

oard

Mem

bers

, in

addi

tion

to t

heir

skill

s, k

now

ledg

e an

d ex

perie

nce

as w

ell a

s pr

ofes

sion

al,

tech

nica

l, ac

adem

ic q

ualifi

catio

ns a

nd p

erso

nalit

y an

d sh

ould

be

base

d on

the

Fit

and

Prop

er G

uide

lines

fo

r N

omin

atio

n of

Boa

rd M

embe

rs’ a

nnex

ed t

o th

e C

ode

as a

men

ded

by t

he A

utho

rity

from

tim

e to

tim

e.

ü

16-4

: Upo

n its

est

ablis

hmen

t, t

he N

omin

atio

n C

omm

ittee

sha

ll ad

opt

and

publ

ish

its t

erm

s of

ref

eren

ce

expl

aini

ng it

s au

thor

ity a

nd r

ole.

ü

16-5

: The

Nom

inat

ion

Com

mitt

ee’s

role

sha

ll al

so in

clud

e co

nduc

ting

an a

nnua

l sel

f-as

sess

men

t of

the

Bo

ard’

s pe

rfor

man

ce.

ü

16-6

: Ban

ks a

nd o

ther

com

pani

es s

hall

com

ply

with

any

con

ditio

ns o

r re

quire

men

ts r

elat

ing

to t

he

nom

inat

ion,

ele

ctio

n or

app

oint

men

t of

Boa

rd M

embe

rs is

sued

by

Qat

ar o

r an

y ot

her

auth

ority

.ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 1

7

Boar

d M

embe

rs’

Rem

uner

atio

n -

Rem

uner

atio

n C

omm

itte

e

17-1

: The

Boa

rd o

f D

irect

ors

shal

l est

ablis

h a

Rem

uner

atio

n C

omm

ittee

com

pris

ed o

f at

leas

t th

ree

Non

-Ex

ecut

ive

Boar

d M

embe

rs t

he m

ajor

ity o

f w

hom

mus

t be

Inde

pend

ent.

ü

The B

an

k h

as

a B

oard

Po

lici

es,

Develo

pm

en

t an

d R

em

un

era

tio

n C

om

mit

tee

as

foll

ow

s:M

em

bers

hip

: Sh

eikh

Abd

ul R

ahm

an B

in M

oham

mad

Bin

Jab

or A

l Tha

ni –

Man

agin

g D

irect

or (C

hairm

an).

He

atte

nded

all

the

Com

mitt

ee m

eetin

gs.

Shei

kh F

alah

Bin

Jas

sim

Bin

Jab

or A

l Tha

ni –

Non

-Exe

cutiv

e Bo

ard

Mem

ber.

He

atte

nded

all

the

Com

mitt

ee m

eetin

gs.

Mr.

Ahm

ed A

bdul

lah

Al K

hal –

Non

-Exe

cutiv

e an

d In

depe

nden

t Bo

ard

Mem

ber

(as

per

QFM

A’s

requ

irem

ents

). H

e at

tend

ed a

ll th

e C

omm

ittee

mee

tings

.

Meeti

ng

s: T

wo

mee

tings

wer

e he

ld a

s pe

r th

e G

over

nanc

e C

ode

requ

irem

ents

.

Ro

les

an

d R

esp

on

sib

ilit

ies:

The

Com

mitt

ee a

ppro

ves

the

Bank

’s po

licie

s an

d st

rate

gies

, an

d re

view

s th

e re

mun

erat

ion

fram

ewor

k fo

r th

e Ex

ecut

ive

Man

agem

ent

and

the

Boar

d. T

he

Com

mitt

ee is

als

o re

spon

sibl

e fo

r dr

awin

g up

the

gen

eral

pol

icy

of b

onus

es a

nd b

enefi

ts o

f th

e Bo

ard

of D

irect

ors,

CEO

and

Sen

ior

Exec

utiv

es b

ased

on

the

achi

evem

ent

of t

he B

ank’

s lo

ng-t

erm

str

ateg

ic g

oals

. Th

e C

omm

ittee

als

o re

view

s th

e pa

y sc

ale

and

othe

r em

ploy

men

t be

nefit

s of

the

Ban

k’s

empl

oyee

s an

d m

akes

rec

omm

enda

tions

to

the

Boar

d of

Dire

ctor

s fo

r ap

prov

al.

The

allo

wan

ces

and

bene

fits

of t

he C

hairm

an, B

oard

Mem

bers

and

Boa

rd C

omm

ittee

s ar

e pr

esen

ted

to t

he s

hare

hold

ers

at t

he G

ener

al A

ssem

bly

Mee

ting

at t

he e

nd o

f ea

ch fi

nanc

ial

year

for

app

rova

l.

Bo

ard

Rem

un

era

tio

nA

t th

e en

d of

eac

h ye

ar p

rior

to t

he G

ener

al A

ssem

bly

mee

ting,

the

pro

pose

d re

mun

erat

ion

for

Boar

d m

embe

rs a

nd t

he C

hairm

an is

mad

e av

aila

ble

to t

he s

hare

hold

ers

for

disc

ussi

on a

nd

appr

oval

. Add

ition

ally,

oth

er b

enefi

ts p

rovi

ded

to B

oard

mem

bers

are

rev

iew

ed b

y th

e Q

atar

C

entr

al B

ank

and

the

Exte

rnal

Aud

itors

, and

sub

sequ

ently

sen

t to

Qat

ar C

entr

al B

ank

and

ther

eaft

er p

rese

nted

to

the

shar

ehol

ders

for

app

rova

l.

Sen

ior

Man

ag

em

en

t R

em

un

era

tio

nTh

e Ba

nk a

dopt

s a

polic

y, w

hich

reg

ulat

es t

he p

roce

ss f

or a

sses

sing

the

per

form

ance

of

Seni

or

Man

agem

ent

base

d on

the

ach

ieve

men

t of

the

ban

k’s

stra

tegi

c go

als.

Bas

ed o

n th

e pe

rfor

man

ce

asse

ssm

ent

and

the

Bank

’s re

sults

, the

add

ition

al b

enefi

ts a

nd b

onus

es a

re s

et.

With

reg

ard

to s

alar

ies,

the

Ban

k ha

s hi

red

one

of t

he c

onsu

lting

firm

s to

pre

pare

a s

tudy

and

pro

posa

l fo

r th

e sa

larie

s an

d fin

anci

al b

enefi

ts o

f th

e st

aff,

whi

ch is

app

rove

d by

the

Boa

rd in

its

third

m

eetin

g of

201

6.

The

Bank

was

una

ble

to f

ulfil

th

e re

quire

men

t of

hav

ing

non-

exec

utiv

e m

embe

rs

and

the

maj

ority

of

the

inde

pend

ent

mem

bers

as

the

com

mitt

ee is

cur

rent

ly c

haire

d by

an

exec

utiv

e m

embe

r. Th

e co

mm

ittee

com

pris

es o

f an

inde

pend

ent

mem

ber

and

non-

exec

utiv

e m

embe

r.. G

oing

for

war

d, D

oha

Bank

w

ill c

onsi

der

chan

ging

the

co

mpo

sitio

n of

thi

s co

mm

ittee

to

tak

e so

cial

fac

tors

into

co

nsid

erat

ion.

17-2

: U

pon

its c

onst

itutio

n, t

he R

emun

erat

ion

Com

mitt

ee s

hall

adop

t an

d m

ake

avai

labl

e its

ter

ms

of

refe

renc

e ex

plai

ning

its

role

and

mai

n re

spon

sibi

litie

s.ü

17-3

: The

Rem

uner

atio

n C

omm

ittee

’s m

ain

role

sha

ll in

clud

e se

ttin

g th

e re

mun

erat

ion

polic

y of

the

C

ompa

ny in

clud

ing

rem

uner

atio

n of

the

Cha

irman

and

all

Boar

d M

embe

rs a

s w

ell a

s Se

nior

Exe

cutiv

e M

anag

emen

t.ü

17-4

: The

Rem

uner

atio

n Po

licy

shal

l be

disc

lose

d to

the

boa

rd m

embe

rs in

the

com

pany

’s an

nual

rep

ort.

ü

17-5

: Rem

uner

atio

n co

mm

ittee

sha

ll ta

ke in

to a

ccou

nt t

he r

espo

nsib

ilitie

s an

d sc

ope

of t

he f

unct

ions

of

the

Boar

d M

embe

rs a

nd m

embe

rs o

f Se

nior

Exe

cutiv

e M

anag

emen

t as

wel

l as

the

perf

orm

ance

of

the

Com

pany

. Com

pens

atio

n m

ay in

clud

e fix

ed a

nd p

erfo

rman

ce-r

elat

ed c

ompo

nent

s, n

otin

g th

at s

uch

perf

orm

ance

rel

ated

com

pone

nts

shou

ld b

e ba

sed

on t

he lo

ng-t

erm

per

form

ance

of

the

Com

pany

.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE 1

8 A

udit

Com

mit

tee

18-1

: The

Boa

rd o

f D

irect

ors

shal

l est

ablis

h an

Aud

it C

omm

ittee

tha

t sh

all b

e co

mpr

ised

of

at le

ast

thre

e m

embe

rs t

he

maj

ority

of

who

m s

houl

d be

Inde

pend

ent.

The

Aud

it C

omm

ittee

mus

t in

clud

e at

leas

t on

e m

embe

r w

ith fi

nanc

ial

and

audi

t ex

perie

nce.

If t

he n

umbe

r of

ava

ilabl

e In

depe

nden

t Bo

ard

Mem

bers

was

not

suf

ficie

nt t

o fil

l the

Aud

it C

omm

ittee

mem

bers

hip,

the

Com

pany

may

app

oint

mem

bers

tha

t ar

e no

t In

depe

nden

t Bo

ard

Mem

bers

pro

vide

d th

at t

he C

hairm

an o

f th

e C

omm

ittee

s In

depe

nden

t.

ü

The B

an

k h

as

a B

oard

Au

dit

, C

om

pli

an

ce a

nd

Ris

k C

om

mit

tee a

s fo

llo

ws:

Mem

bers

hip

: Sh

eikh

Abd

ulla

Moh

amm

ad B

in J

abor

Al T

hani

– N

on-E

xecu

tive

Boar

d M

embe

r (C

hairm

an).

He

atte

nded

sev

en m

eetin

gs o

f th

e C

omm

itte.

Mr.

Ahm

ed A

bdul

lah

Al K

hal –

Non

-Exe

cutiv

e an

d In

depe

nden

t Bo

ard

Mem

ber

(as

per

QFM

A’s

requ

irem

ents

). H

e at

tend

ed s

ix m

eetin

gs.

Mr.

Kha

lid A

bdel

Azi

z A

l Bak

er –

Inde

pend

ent

Mem

ber

and

not

a Bo

ard

mem

ber.

He

atte

nded

al

l the

Com

mitt

ee m

eetin

gs.

Meeti

ng

s:

Eigh

t m

eetin

gs w

ere

held

dur

ing

the

year

, not

ing

that

onl

y si

x m

eetin

gs a

re r

equi

red

as p

er

the

Gov

erna

nce

Cod

e.

Ro

les

an

d R

esp

on

sib

ilit

ies:

Th

e C

omm

ittee

is r

espo

nsib

le f

or r

evie

win

g th

e fin

anci

al s

tate

men

ts, t

he w

ork

of e

xter

nal

and

inte

rnal

aud

itors

, the

inte

rnal

con

trol

env

ironm

ent,

the

com

plia

nce

with

reg

ulat

ions

and

la

ws

and

the

man

agem

ent

of r

isk

at t

he B

ank.

The

Aud

it C

omm

ittee

may

see

k in

depe

nden

t pr

ofes

sion

al a

dvic

e fo

r ris

k m

anag

emen

t an

d m

ay h

ire c

onsu

ltant

s to

ass

ist

it in

per

form

ing

its

func

tions

, and

exe

rcis

ing

its p

ower

s an

d re

spon

sibi

litie

s so

undl

y. T

he C

omm

ittee

dis

cuss

es w

ith

the

exte

rnal

aud

itors

the

nat

ure,

sco

pe a

nd e

ffici

ency

of

the

unde

rtak

en a

udits

in a

ccor

danc

e w

ith In

tern

atio

nal A

udit

Stan

dard

s an

d In

tern

atio

nal F

inan

cial

Rep

ortin

g St

anda

rds,

and

it a

lso

ensu

res

the

inde

pend

ence

and

obj

ectiv

ity o

f th

e ex

tern

al a

udito

rs b

y co

llect

ing

info

rmat

ion

from

the

m o

n th

eir

rela

tions

hip

with

the

ban

k, in

clud

ing

the

non-

audi

ting

serv

ices

.

The

Com

mitt

ee a

lso

revi

ews

the

annu

al a

nd q

uart

erly

fina

ncia

l sta

tem

ents

and

insp

ects

the

Ba

nk’s

annu

al r

epor

t an

d th

e no

tes

cont

aine

d th

erei

n, a

nd in

the

oth

er r

elat

ed c

ontr

ol r

epor

ts.

It al

so r

evie

ws

the

impo

rtan

t fin

anci

al a

nd a

ccou

ntin

g re

port

s, in

clud

ing

the

com

plex

cas

es a

nd

the

unus

ual o

pera

tions

and

the

are

as t

hat

requ

ire a

hig

h le

vel o

f di

ligen

ce a

nd g

ood

judg

men

t.

The

Com

mitt

ee c

onsi

ders

the

eff

ectiv

enes

s of

the

Ban

k’s

risk

man

agem

ent

and

inte

rnal

con

trol

ov

er a

nnua

l, in

terim

and

reg

ulat

ory

finan

cial

rep

ortin

g an

d ot

her

regu

lato

ry r

epor

ting,

incl

udin

g in

form

atio

n te

chno

logy

sec

urity

. It

also

see

ks c

larifi

catio

ns f

rom

the

man

agem

ent

and

the

inte

rnal

and

ext

erna

l aud

itors

as

to w

heth

er t

he fi

nanc

ial a

nd o

pera

tiona

l con

trol

s ar

e ad

equa

te

and

effe

ctiv

e. T

he C

omm

ittee

ens

ures

tha

t th

e fin

anci

al s

tate

men

ts a

nd t

he is

sued

rep

orts

ar

e in

com

plia

nce

with

the

acc

ount

ing

stan

dard

s an

d pr

actic

es a

ccep

ted

by Q

CB

and

QFM

A,

and

with

the

list

ing

regu

latio

ns e

nfor

ced

by Q

E, a

s w

ell a

s th

e di

sclo

sure

rul

es a

nd a

ny o

ther

re

quire

men

ts g

over

ning

the

pre

para

tion

of fi

nanc

ial r

epor

ts.

The

Com

mitt

ee m

eets

reg

ular

ly d

urin

g th

e ye

ar t

o di

scus

s th

e re

port

s of

the

Inte

rnal

Aud

it D

epar

tmen

t, t

he C

ompl

ianc

e D

epar

tmen

t an

d Ri

sk M

anag

emen

t in

add

ition

to

the

repo

rts

issu

ed b

y th

e Ex

tern

al A

udito

rs a

nd Q

CB’

s in

spec

tion

repo

rts.

The

Com

mitt

ee a

lso

revi

ews

the

quot

atio

ns s

ubm

itted

by

the

exte

rnal

aud

itors

for

aud

iting

the

Ba

nk’s

acco

unts

eve

ry y

ear

and

subm

its r

ecom

men

datio

ns t

here

of t

o th

e Bo

ard

of D

irect

ors

to

sele

ct t

he m

ost

suita

ble

audi

tor

or t

o re

new

the

ter

m o

f th

e cu

rren

t au

dito

r so

as

to s

ubm

it a

Boar

d re

com

men

datio

n to

the

Gen

eral

Ass

embl

y of

Sha

reho

lder

s.

The

Bank

has

app

rove

d a

whi

stle

-blo

win

g po

licy

to e

ncou

rage

the

Ban

k’s

empl

oyee

s to

det

ect/

di

sclo

se a

ny v

iola

tions

tha

t m

ay a

dver

sely

aff

ect

the

Bank

. The

crit

ical

issu

es a

re t

hen

repo

rted

to

the

Aud

it, C

ompl

ianc

e &

Ris

k Ev

alua

tion

Com

mitt

ee w

hich

in t

urn

ensu

res

taki

ng t

he

nece

ssar

y ac

tions

to

rect

ify t

he v

iola

tions

. The

re h

as b

een

no c

onfli

ct b

etw

een

the

Com

mitt

ee’s

reco

mm

enda

tions

and

the

Boa

rd’s

reso

lutio

ns o

r an

y ot

her

issu

es o

f m

ater

ial i

mpa

ct d

urin

g th

e ye

ar 2

016.

18-2

: In

any

even

t, a

ny p

erso

n w

ho is

or

has

been

em

ploy

ed b

y th

e C

ompa

ny’s

exte

rnal

aud

itors

with

in t

he la

st 2

yea

rs m

ay

not

be a

mem

ber

of t

he A

udit

Com

mitt

ee.

ü

18-3

: The

Aud

it C

omm

ittee

may

con

sult

at t

he C

ompa

ny’s

expe

nse

any

inde

pend

ent

expe

rt o

r co

nsul

tant

.ü

18-4

: The

Aud

it C

omm

ittee

sha

ll m

eet

as n

eede

d an

d re

gula

rly a

t le

ast

once

eve

ry t

hree

mon

ths

and

shal

l kee

p m

inut

es

of it

s m

eetin

gs.

ü

18-5

: In

the

even

t of

any

dis

agre

emen

t be

twee

n th

e A

udit

Com

mitt

ee’s

reco

mm

enda

tions

and

the

Boa

rd’s

deci

sion

in

clud

ing

whe

re t

he B

oard

ref

uses

to

follo

w t

he C

omm

ittee

’s re

com

men

datio

ns c

once

rnin

g th

e ex

tern

al a

udito

r, th

e Bo

ard

shal

l inc

lude

in t

he C

ompa

ny’s

Gov

erna

nce

Repo

rt, a

sta

tem

ent

deta

iling

suc

h re

com

men

datio

ns a

nd t

he

reas

on(s

) beh

ind

the

Boar

d of

Dire

ctor

s’ d

ecis

ion

not

to f

ollo

w t

he r

ecom

men

datio

ns.

ü

18-6

: Upo

n its

est

ablis

hmen

t, t

he A

udit

Com

mitt

ee s

hall

adop

t an

d m

ake

publ

ic it

s te

rms

of r

efer

ence

exp

lain

ing

its m

ain

role

and

res

pons

ibili

ties

in t

he f

orm

of

an A

udit

Com

mitt

ee C

hart

er in

clud

ing

in p

artic

ular

the

fol

low

ing:

ü

a) t

o ad

opt

a po

licy

for

appo

intin

g th

e Ex

tern

al A

udito

rs; a

nd t

o re

port

to

the

Boar

d of

Dire

ctor

s an

y m

atte

rs t

hat,

in

the

opin

ion

of t

he C

omm

ittee

, nec

essi

tate

act

ion

and

to p

rovi

de r

ecom

men

datio

ns o

n th

e ne

cess

ary

proc

edur

es

or r

equi

red

actio

n.ü

b) t

o ov

erse

e an

d fo

llow

up

the

inde

pend

ence

and

obj

ectiv

ity o

f the

ext

erna

l aud

itor a

nd to

disc

uss

with

the

exte

rnal

aud

itor

the

natu

re, s

cope

and

effi

cien

cy o

f the

aud

it in

acc

orda

nce

with

Inte

rnat

iona

l Sta

ndar

ds o

n A

uditi

ng a

nd In

tern

atio

nal

Fina

ncia

l Rep

ortin

g St

anda

rds.

ü

c)

to o

vers

ee, t

he a

ccur

acy

and

valid

ity o

f the

fina

ncia

l sta

tem

ents

and

the

year

ly, h

alf-

year

ly a

nd q

uart

erly

repo

rts

, and

to

revi

ew s

uch

stat

emen

ts a

nd re

port

s. In

this

rega

rd p

artic

ular

ly fo

cus

on:

ü

1. A

ny c

hang

es to

the

acco

untin

g po

licie

s an

d pr

actic

es.

ü

2. M

atte

rs s

ubje

ct to

the

disc

retio

n of

Sen

ior E

xecu

tive

Man

agem

ent.

ü

3. T

he m

ajor

am

endm

ents

resu

lting

from

the

audi

t.ü

4. C

ontin

uatio

n of

the

Com

pany

as

a vi

able

goi

ng c

once

rn.

ü

5. C

ompl

ianc

e w

ith th

e ac

coun

ting

stan

dard

s de

signa

ted

by th

e A

utho

rity.

ü

6. C

ompl

ianc

e w

ith th

e ap

plic

able

list

ing

Rule

s in

the

Mar

ket.

ü

7. C

ompl

ianc

e w

ith d

isclo

sure

rule

s an

d an

y ot

her r

equi

rem

ents

rela

ting

to th

e pr

epar

atio

n of

fina

ncia

l rep

orts

.ü

d) t

o co

ordi

nate

with

the

Boa

rd o

f D

irect

ors,

Sen

ior

Exec

utiv

e M

anag

emen

t an

d th

e C

ompa

ny’s

chie

f fin

anci

al o

ffice

r or

th

e pe

rson

und

erta

king

the

latt

er’s

task

s, a

nd t

o m

eet

with

the

ext

erna

l aud

itors

at

leas

t on

ce a

yea

r.ü

e) t

o co

nsid

er a

ny s

igni

fican

t and

unu

sual

mat

ters

con

tain

ed o

r to

be c

onta

ined

in s

uch

finan

cial

repo

rts

and

acco

unts

. And

to

give

due

con

sider

atio

n to

any

issu

es ra

ised

by th

e C

ompa

ny’s

chie

f fina

ncia

l offi

cer o

r the

per

son

unde

rtak

ing

the

latt

er’s

task

s, o

r the

Com

pany

’s co

mpl

ianc

e of

ficer

or e

xter

nal a

udito

rs.

ü

f) t

o re

view

the

finan

cial

and

Inte

rnal

Con

trol

and

risk

man

agem

ent s

yste

ms.

ü

g) t

o di

scus

s th

e In

tern

al C

ontr

ol s

yste

ms

with

the

man

agem

ent t

o en

sure

man

agem

ent’s

per

form

ance

of i

ts d

utie

s to

war

ds th

e de

velo

pmen

t of e

ffici

ent I

nter

nal C

ontr

ol s

yste

ms.

ü

h) t

o co

nsid

er th

e fin

ding

s of

prin

cipa

l inv

estig

atio

ns in

Inte

rnal

Con

trol

mat

ters

requ

este

d by

the

Boar

d of

Dire

ctor

s or

car

ried

out

by th

e C

omm

ittee

on

its o

wn

initi

ativ

e w

ith th

e Bo

ards

’ app

rova

l.ü

i)

to e

nsur

e co

ordi

natio

n be

twee

n th

e In

tern

al A

udito

rs a

nd th

e Ex

tern

al A

udito

r, th

e av

aila

bilit

y of

nec

essa

ry

reso

urce

s, a

nd th

e ef

fect

iven

ess

of th

e In

tern

al C

ontr

ols.

ü

j)

to re

view

the

Com

pany

’s fin

anci

al a

nd a

ccou

ntin

g po

licie

s an

d pr

oced

ures

ü

k)

to re

view

the

lett

er o

f app

oint

men

t of t

he E

xter

nal A

udito

r, hi

s bu

sines

s pl

an a

nd a

ny s

igni

fican

t cla

rifica

tions

he

requ

ests

fr

om s

enio

r man

agem

ent a

s re

gard

s th

e ac

coun

ting

reco

rds,

the

finan

cial

acc

ount

s or

con

trol

sys

tem

s as

wel

l as

the

Seni

or

Exec

utiv

e m

anag

emen

t’s re

ply.

ü

l)

to e

nsur

e th

e tim

ely

repl

y by

the

Boar

d of

Dire

ctor

s to

the

quer

ies

and

mat

ters

con

tain

ed in

the

Exte

rnal

Aud

itors

’ let

ters

or

repo

rts.

ü

m) t

o de

velo

p ru

les,

thro

ugh

whi

ch e

mpl

oyee

s of

the

Com

pany

can

con

fiden

tially

repo

rt a

ny c

once

rns

abou

t mat

ters

in th

e fin

anci

al re

port

s or

Inte

rnal

Con

trol

s or

any

oth

er m

atte

rs th

at ra

ise s

uspi

cion

s. A

nd to

ens

ure

that

pro

per a

rran

gem

ents

are

av

aila

ble

to a

llow

inde

pend

ent a

nd fa

ir in

vest

igat

ion

of s

uch

mat

ters

whi

lst e

nsur

ing

that

the

afor

emen

tione

d em

ploy

ee is

af

ford

ed c

onfid

entia

lity

and

prot

ecte

d fr

om re

prisa

l. Su

ch ru

les

shou

ld b

e su

bmitt

ed to

the

Boar

d of

Dire

ctor

s fo

r ado

ptio

n.

ü

n)

to o

vers

ee th

e C

ompa

ny’s

adhe

renc

e to

pro

fess

iona

l con

duct

rule

s.ü

o)

to e

nsur

e th

at th

e ru

les

of p

roce

dure

rela

ted

to th

e po

wer

s as

signe

d to

the

Boar

d of

Dire

ctor

s ar

e pr

oper

ly a

pplie

d.ü

p)

to s

ubm

it a

repo

rt to

the

Boar

d of

Dire

ctor

s on

the

mat

ters

con

tain

ed in

this

Art

icle

.ü

q)

to c

onsid

er o

ther

issu

es a

s de

term

ined

by

the

Boar

d of

Dire

ctor

s.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

19

)C

ompl

ianc

e,

Inte

rnal

Con

trol

s an

d th

e In

tern

al

Aud

itor

19-1

:The

Com

pany

sha

ll ad

opt

Inte

rnal

Con

trol

Sys

tem

s, a

ppro

ved

by t

he B

oard

, to

eval

uate

the

met

hods

an

d pr

oced

ures

for

ris

k m

anag

emen

t, im

plem

enta

tion

of t

he C

ompa

ny’s

corp

orat

e go

vern

ance

cod

e an

d co

mpl

ianc

e w

ith r

elat

ed la

ws

and

regu

latio

ns. A

nd t

he In

tern

al C

ontr

ol S

yste

ms

shal

l set

cle

ar

lines

of

resp

onsi

bilit

y an

d ac

coun

tabi

lity

thro

ugho

ut t

he C

ompa

ny’s

depa

rtm

ents

.

üTh

e ge

nera

l obj

ectiv

e of

the

inte

rnal

con

trol

s pr

oced

ures

of D

oha

Bank

is to

saf

egua

rd a

sset

s an

d ca

pita

l and

to e

nsur

e th

e re

liabi

lity

of D

oha

Bank

’s an

d its

sub

sidia

ries’

fina

ncia

l rec

ordk

eepi

ng.

Doh

a Ba

nk h

as a

dopt

ed a

pro

cess

of i

nter

nal c

ontr

ols

that

allo

w M

anag

emen

t to

dete

ct e

rror

s in

pro

cedu

res

or fi

nanc

ial r

ecor

dkee

ping

. D

oha

Bank

’s in

tern

al c

ontr

ol fr

amew

ork

incl

udes

the

esta

blish

men

t of s

tron

g fin

ance

, risk

man

agem

ent,

com

plia

nce

and

inte

rnal

aud

it de

part

men

ts w

hich

su

ppor

t in

esta

blish

ing

a st

rong

inte

rnal

con

trol

fram

ewor

k.

The

Inte

rnal

Con

trol

Fra

mew

ork

is ov

erse

en b

y th

e A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee.

The

Inte

rnal

Aud

it, C

ompl

ianc

e an

d Ri

sk D

epar

tmen

ts re

spec

tivel

y pr

ovid

e pe

riodi

c re

port

s to

the

Aud

it,

Com

plia

nce

and

Risk

Com

mitt

ee o

n:

• Th

e m

ajor

risk

s as

soci

ated

with

the

bank

ing

busin

ess

rela

ted

to S

trat

egic

, Rep

utat

ion,

C

ompl

ianc

e, L

egal

, Cre

dit,

Liqu

idity

, Mar

ket,

and

Ope

ratio

nal R

isks;

• O

vera

ll co

mpl

ianc

e of

the

Bank

with

rule

s an

d re

gula

tions

;

• In

tern

al A

udit

and

Exte

rnal

Aud

it re

com

men

datio

ns a

nd fi

ndin

gs.

The

Boar

d of

Dire

ctor

s ha

s ap

prov

ed p

olic

ies

rela

ted

to In

tern

al A

udit

Dep

artm

ent,

Com

plia

nce

Dep

artm

ent a

nd R

isk M

anag

emen

t Dep

artm

ent.

Co

mp

lian

ce

The

mai

n re

spon

sibili

ty o

f the

Com

plia

nce

Dep

artm

ent a

t the

Ban

k is

to a

ssist

the

Boar

d an

d Ba

nk’s

Exec

utiv

e M

anag

emen

t in

man

agin

g an

d co

ntro

lling

the

Com

plia

nce

risks

effi

cien

tly a

nd to

pro

tect

th

e Ba

nk fr

om fi

nanc

ial l

osse

s “i

f any

” du

e to

failu

re o

f com

plia

nce.

Com

plia

nce

risks

incl

ude

risk

of le

gal/r

egul

ator

y sa

nctio

ns, m

ater

ial fi

nanc

ial l

oss,

or l

oss

of re

puta

tion.

Com

plia

nce

also

ass

ists

the

Boar

d of

Dire

ctor

s an

d Ex

ecut

ive

Man

agem

ent i

n im

prov

ing

the

inte

rnal

con

trol

s pr

oced

ures

th

at w

ill m

itiga

te C

ompl

ianc

e, A

ML

and

Ant

i–Te

rror

ist F

inan

cing

(ATF

) risk

s. M

oreo

ver,

Com

plia

nce

acts

as

a lia

ison

betw

een

the

Bank

and

the

resp

ectiv

e re

gula

tors

and

upd

ates

man

agem

ent w

ith

new

law

s an

d re

gula

tions

.

Inte

rnal

Au

dit

The

Bank

has

an

inde

pend

ent I

nter

nal A

udit

Dep

artm

ent t

hat r

epor

ts to

the

Boar

d of

Dire

ctor

s th

roug

h th

e A

udit,

Com

plia

nce

and

Risk

Eva

luat

ion

Com

mitt

ee o

n a

perio

dic

basis

. Th

e In

tern

al

Aud

it is

carr

ied

out b

y op

erat

iona

lly in

depe

nden

t, ap

prop

riate

ly tr

aine

d an

d co

mpe

tent

sta

ff.

The

Inte

rnal

Aud

it em

ploy

ees

have

acc

ess

to a

ll th

e Ba

nk’s

activ

ities

, doc

umen

ts a

nd re

port

s th

at a

re

need

ed to

acc

ompl

ish th

eir m

issio

ns.

The

Inte

rnal

Aud

it te

am d

oes

not p

erfo

rm a

ny a

ctiv

ities

in

rela

tion

to B

ank’

s da

ily re

gula

r act

iviti

es a

nd a

ll th

eir b

onus

es a

nd b

enefi

ts a

re d

irect

ly d

eter

min

ed

by th

e Bo

ard

of D

irect

ors.

The

Inte

rnal

Aud

it D

epar

tmen

t ope

rate

s in

acc

orda

nce

with

an

Aud

it Pl

an th

at is

app

rove

d by

the

Aud

it, C

ompl

ianc

e an

d Ri

sk E

valu

atio

n C

omm

ittee

. Th

is pl

an in

clud

es a

revi

ew a

nd e

valu

atio

n of

the

inte

rnal

con

trol

sys

tem

s of

the

vario

us b

ranc

hes

and

depa

rtm

ents

of t

he B

ank.

Ris

k M

anag

emen

t

The

Bank

has

con

siste

ntly

and

con

tinua

lly m

onito

red

risks

and

pro

cess

es a

cros

s th

e or

gani

zatio

n to

id

entif

y, a

sses

s, m

easu

re, m

anag

e an

d re

port

on

oppo

rtun

ities

and

thre

ats

that

cou

ld im

pact

the

achi

evem

ent o

f the

Ban

k’s

obje

ctiv

es.

The

Boar

d an

d th

e Ex

ecut

ive

Man

agem

ent a

re u

ltim

atel

y re

spon

sible

for a

ll th

e ris

ks a

ssum

ed b

y th

e Ba

nk.

They

see

k to

bal

ance

the

risk

profi

le a

gain

st

sust

aina

ble

retu

rns

to a

chie

ve th

e bu

sines

s go

als

of th

e Ba

nk.

The

Boar

d ha

s en

gage

d qu

alifi

ed

prof

essio

nals

and

has

set p

olic

ies

and

proc

edur

es, r

isk li

mits

, org

aniz

atio

nal f

ram

ewor

k, c

omm

ittee

s,

auth

ority

leve

ls an

d ac

coun

tabi

lity.

Cur

rent

ly, th

e pr

oces

s of

iden

tifyi

ng a

nd a

sses

sing

risk

is

perf

orm

ed th

roug

h pe

riodi

c ris

k as

sess

men

ts.

Impl

emen

tatio

n of

the

Risk

Man

agem

ent F

ram

ewor

k is

entr

uste

d to

a h

ighl

y co

mpe

tent

team

and

is

cont

rolle

d an

d im

plem

ente

d th

roug

h va

rious

sen

ior l

evel

man

agem

ent c

omm

ittee

s ch

aire

d by

the

Chi

ef E

xecu

tive

Offi

cer c

over

ing

Cre

dit,

Inve

stm

ent a

nd A

sset

& L

iabi

lity

Man

agem

ent.

INTE

RN

AL

CO

NTR

OL

ASS

ESSM

ENT

The

Boar

d re

ceiv

es p

erio

dic

repo

rts

on th

e in

tern

al c

ontr

ol fr

amew

ork

from

Sen

ior M

anag

emen

t an

d co

ntro

l fun

ctio

ns s

uch

as In

tern

al A

udit,

Com

plia

nce

and

Risk

Man

agem

ent.

Suc

h re

port

s ar

e as

sess

ed a

nd s

crut

iniz

ed b

y th

e Bo

ard

to e

nsur

e th

at th

e in

tern

al c

ontr

ol fr

amew

ork

is be

ing

impl

emen

ted

acco

rdin

g to

man

agem

ent p

rero

gativ

es.

The

Boar

d vi

ews

that

the

curr

ent p

roce

sses

ad

opte

d fo

r int

erna

l con

trol

by

the

Boar

d an

d Se

nior

Man

agem

ent a

re ro

bust

for D

oha

Bank

’s op

erat

ions

.

No

maj

or b

reac

h of

con

trol

or i

nter

nal c

ontr

ol fa

ilure

has

take

n pl

ace

whi

ch h

as a

ffec

ted

or m

ay

affe

ct B

ank’

s fin

anci

al p

erfo

rman

ce d

urin

g 20

16.

19-2

: Int

erna

l Con

trol

Sys

tem

s sh

all i

nclu

de e

ffec

tive

and

inde

pend

ent

risk

asse

ssm

ent

and

man

agem

ent

func

tions

, as

wel

l as

finan

cial

and

ope

ratio

nal i

nter

nal a

udit

func

tions

in a

dditi

on t

o th

e ex

tern

al

audi

t. T

he In

tern

al C

ontr

ol S

yste

ms

shal

l als

o en

sure

tha

t al

l rel

ated

-par

ty t

rans

actio

ns a

re h

andl

ed in

ac

cord

ance

with

the

req

uire

men

ts r

elat

ed t

here

to.

ü

19-3

: The

Com

pany

sha

ll ha

ve a

n in

tern

al a

udit

func

tion

with

cle

arly

defi

ned

func

tions

and

role

. In

part

icul

ar, t

he

i

nter

nal a

udit

func

tion

shal

l:ü

(1)

audi

t the

Inte

rnal

Con

trol

Sys

tem

s an

d ov

erse

e th

eir i

mpl

emen

tatio

n.ü

(2)

be c

arrie

d ou

t by

oper

atio

nally

inde

pend

ent,

appr

opria

tely

trai

ned

and

com

pete

nt s

taff

; and

ü

(3)

Subm

it its

repo

rts

to th

e Bo

ard

of D

irect

ors

eith

er d

irect

ly o

r thr

ough

the

Boar

d’s

Aud

it C

omm

ittee

; and

is

resp

onsib

le to

the

Boar

d; a

ndü

(4)

Has

acc

ess

to a

ll C

ompa

ny’s

activ

ities

; and

ü

(5)

Be in

depe

nden

t inc

ludi

ng b

eing

inde

pend

ent f

rom

the

day-

to-d

ay C

ompa

ny fu

nctio

ning

. Its

inde

pend

ence

sh

ould

be

rein

forc

ed fo

r exa

mpl

e by

hav

ing

the

Boar

d de

term

ine

com

pens

atio

n of

its

staf

f.ü

19-4

: The

inte

rnal

aud

it fu

nctio

n sh

all i

nclu

de a

t le

ast

one

inte

rnal

aud

itor

appo

inte

d by

the

Boa

rd o

f D

irect

ors.

Thi

s in

tern

al a

udito

r sh

all r

epor

t to

the

Boa

rd.

ü

19-5

: The

inte

rnal

aud

itor

shal

l pre

pare

and

sub

mit

to t

he A

udit

Com

mitt

ee a

nd t

he B

oard

of

Dire

ctor

s an

“i

nter

nal a

udit

repo

rt”

whi

ch s

hall

incl

ude

a re

view

and

ass

essm

ent

of t

he In

tern

al C

ontr

ol s

yste

m

of t

he C

ompa

ny. T

he s

cope

of

the

Inte

rnal

Aud

it Re

port

sha

ll be

agr

eed

betw

een

the

Boar

d (b

ased

on

the

Aud

it C

omm

ittee

rec

omm

enda

tion)

and

the

inte

rnal

aud

itor

and

shal

l inc

lude

par

ticul

arly

th

e fo

llow

ing:

ü

- C

ontr

ol a

nd o

vers

ight

pro

cedu

res

of fi

nanc

ial a

ffai

rs, i

nves

tmen

ts, a

nd ri

sk m

anag

emen

tü

- C

ompa

rativ

e ev

alua

tion

of th

e de

velo

pmen

t of r

isk fa

ctor

s an

d th

e sy

stem

s in

pla

ce to

resp

ond

to d

rast

ic o

r un

expe

cted

mar

ket c

hang

es.

ü

- A

sses

men

t of t

he p

erfo

rman

ce o

f the

Boa

rd a

nd S

enio

r Man

agem

ent i

n im

plem

entin

g th

e In

tern

al C

ontr

ol

Syst

ems,

incl

udin

g th

e nu

mbe

r of t

imes

the

Boar

d w

as n

otifi

ed o

f con

trol

issu

es (i

nclu

ding

risk

man

agem

ent)

an

d th

e m

anne

r in

whi

ch s

uch

issue

s w

ere

hand

led

by th

e Bo

ard.

- In

tern

al C

ontr

ol fa

ilure

, wea

knes

ses

or c

ontin

genc

ies

that

hav

e af

fect

ed o

r may

aff

ect t

he C

ompa

ny’s

finan

cial

pe

rfor

man

ce a

nd th

e pr

oced

ure

follo

wed

by

the

Com

pany

in a

ddre

ssin

g In

tern

al C

ontr

ol fa

ilure

s (e

spec

ially

su

ch p

robl

ems

as d

isclo

sed

in th

e C

ompa

ny’s

annu

al re

port

s an

d fin

anci

al s

tate

men

ts).

ü

- Th

e C

ompa

ny’s

com

plia

nce

with

app

licab

le m

arke

t list

ing

and

disc

losu

re ru

les

and

requ

irem

ents

. ü

- Th

e C

ompa

ny’s

com

plia

nce

with

Inte

rnal

Con

trol

sys

tem

s in

det

erm

inin

g an

d m

anag

ing

risk.

ü

- A

ll re

leva

nt in

form

atio

n de

scrib

ing

the

Com

pany

’s ris

k m

anag

emen

t ope

ratio

ns.

ü

19-6

: The

Inte

rnal

Aud

it Re

port

sha

ll be

pre

pare

d ev

ery

thre

e m

onth

s.ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

20

) E

xter

nal A

udit

or

20-1

: An

Exte

rnal

Aud

itor

who

is in

depe

nden

t, a

nd q

ualifi

ed, a

nd a

ppoi

nted

upo

n th

e re

com

men

datio

n of

the

Aud

it C

omm

ittee

to

the

Boar

d an

d th

e de

cisi

on o

f th

e C

ompa

ny’s

Gen

eral

Ass

embl

y, s

hall

unde

rtak

e an

ann

ual a

nd s

emi-a

nnua

l ind

epen

dent

aud

it. T

he p

urpo

se o

f th

e sa

id a

udit

is t

o pr

ovid

e an

obj

ectiv

e as

sura

nce

to t

he B

oard

and

sha

reho

lder

s th

at t

he fi

nanc

ial s

tate

men

ts a

re p

repa

red

in a

ccor

danc

e w

ith t

his

Cod

e, r

elat

ed la

ws

and

regu

latio

ns a

nd in

tern

atio

nal fi

nanc

ial r

epor

ting

stan

dard

s an

d ac

cura

tely

rep

rese

nt t

he fi

nanc

ial p

ositi

on a

nd p

erfo

rman

ce o

f th

e C

ompa

ny in

all

mat

eria

l res

pect

s.

üA

nnua

lly, t

he e

xter

nal a

ccou

nt a

udito

rs a

re a

ppoi

nted

by

the

Gen

eral

Ass

embl

y of

Sha

reho

lder

s ba

sed

on a

rec

omm

enda

tion

subm

itted

by

the

Boar

d of

Dire

ctor

s. T

he B

ank

take

s in

to

cons

ider

atio

n th

e in

stru

ctio

ns o

f th

e re

gula

tory

aut

horit

ies

rela

ted

to t

he a

ppoi

ntm

ent

of

exte

rnal

aud

itors

in t

erm

s of

the

num

ber

of t

imes

for

the

app

oint

men

t of

any

aud

itor.

The

Bo

ard

of D

irect

ors

also

tak

es Q

CB’

s pr

ior

appr

oval

for

the

nom

inat

ion

of a

n ex

tern

al a

udito

r/m

ore

than

one

ext

erna

l aud

itor

for

the

appr

oval

of

the

Gen

eral

Ass

embl

y of

Sha

reho

lder

s.

Aft

er c

hoos

ing

an e

xter

nal a

udito

r by

the

Gen

eral

Ass

embl

y of

Sha

reho

lder

s, a

n en

gage

men

t le

tter

is s

igne

d be

twee

n th

e tw

o pa

rtie

s. U

nder

thi

s en

gage

men

t, t

he e

xter

nal a

udito

r sh

all b

e re

quire

d to

com

ply

with

the

bes

t pr

ofes

sion

al s

tand

ards

and

exe

rt t

he n

eces

sary

pro

fess

iona

l du

e di

ligen

ce u

pon

cond

uctin

g an

y au

dit

assi

gnm

ent,

and

to

info

rm t

he r

egul

ator

y au

thor

ities

in

the

even

t of

the

fai

lure

of

the

Bank

(the

Boa

rd) t

o ta

ke a

ppro

pria

te a

ctio

ns t

owar

ds t

he m

ater

ial

issu

es t

hat

have

bee

n ra

ised

by

them

. Th

e ex

tern

al a

udito

r al

so r

evie

ws

the

bala

nce

shee

t an

d pr

ofit

& lo

ss a

ccou

nts.

Erns

t &

You

ng r

evie

w a

nd a

udit

the

Bank

’s ac

coun

ts s

ince

201

2 to

dat

e, in

clud

ing

the

Isla

mic

ac

tiviti

es, o

vers

eas

bran

ches

’ acc

ount

s, D

oha

Bank

Ass

uran

ce C

ompa

ny’s

acco

unts

in a

dditi

on

to in

vest

men

t fu

nd a

ccou

nts

and

perio

dic

repo

rts

pert

aini

ng t

o Q

CB

requ

irem

ents

. The

ext

erna

l au

dit

fee

for

2016

was

QR

2,45

0,00

0.

We

have

rec

eive

d th

ree

quot

atio

ns f

rom

thr

ee w

ell-k

now

n au

ditin

g fir

ms.

The

se q

uota

tions

wer

e pr

esen

ted

to t

he O

rdin

ary

Gen

eral

Ass

embl

y of

sha

reho

lder

s an

d Er

nst

& Y

oung

wer

e se

lect

ed t

o re

view

the

ban

k’s

acco

unts

for

201

6.

20-2

: The

Ext

erna

l Aud

itor

shal

l com

ply

with

the

hig

hest

pro

fess

iona

l sta

ndar

ds a

nd h

e sh

all n

ot b

e co

ntra

cted

by

the

Com

pany

to

prov

ide

any

advi

ce o

r se

rvic

es o

ther

tha

n ca

rryi

ng o

ut t

he fi

nanc

ial a

udit

of t

he C

ompa

ny. T

he E

xter

nal A

udito

r m

ust

be c

ompl

etel

y in

depe

nden

t fr

om t

he C

ompa

ny a

nd it

s Bo

ard

Mem

bers

and

sha

ll no

t ha

ve a

ny c

onfli

ct o

f in

tere

sts

in h

is r

elat

ion

to t

he C

ompa

ny.

ü

20-3

: The

Com

pany

’s Ex

tern

al A

udito

r m

ust

atte

nd t

he C

ompa

ny’s

annu

al o

rdin

ary

Gen

eral

Ass

embl

y w

here

he

sha

ll de

liver

his

ann

ual r

epor

t an

d an

swer

any

que

ries

in t

his

resp

ect.

ü

20-4

: The

Ext

erna

l Aud

itor

is a

ccou

ntab

le t

o th

e sh

areh

olde

rs a

nd o

wes

a d

uty

to t

he C

ompa

ny t

o ex

erci

se

due

prof

essi

onal

car

e in

the

con

duct

of

the

audi

t. T

he E

xter

nal A

udito

r is

als

o re

spon

sibl

e fo

r no

tifyi

ng

the

Aut

horit

y an

d an

y ot

her

regu

lato

ry a

utho

rity

shou

ld t

he B

oard

fai

l to

take

pro

per

actio

n co

ncer

ning

su

spic

ions

rai

sed

or id

entifi

ed b

y th

e Ex

tern

al A

udito

rs.

ü

20-5

: All

liste

d co

mpa

nies

sha

ll ch

ange

its

Exte

rnal

Aud

itor

ever

y fiv

e ye

ars

at a

max

imum

.ü

AR

TIC

LE (

21

) D

iscl

osur

e

21-1

: The

Com

pany

mus

t co

mpl

y w

ith a

ll di

sclo

sure

req

uire

men

ts in

clud

ing

finan

cial

rep

ortin

g as

wel

l as

disc

losi

ng s

hare

hold

ings

of

Boar

d M

embe

rs, s

enio

r ex

ecut

ives

and

maj

or o

r co

ntro

lling

sha

reho

lder

s.

The

Com

pany

mus

t al

so d

iscl

ose

info

rmat

ion

abou

t its

Boa

rd M

embe

rs in

clud

ing

nota

bly

a re

sum

e of

ea

ch m

embe

r de

scrib

ing

his/

her

resp

ectiv

e ed

ucat

ion,

pro

fess

ion,

oth

er b

oard

sea

ts t

hat

they

may

hol

d (if

any

). N

ames

of

the

mem

bers

of

vario

us C

omm

ittee

s co

nstit

uted

by

the

Boar

d as

men

tione

d in

Art

icle

5.

3, a

long

with

the

com

posi

tion

of t

he c

omm

ittee

, sho

uld

also

be

disc

lose

d.

üD

oha

Bank

adh

eres

to

all t

he d

iscl

osur

e re

quire

men

ts is

sued

by

Qat

ar F

inan

cial

Mar

kets

’ A

utho

rity,

whe

re t

he B

ank

disc

lose

s al

l its

fina

ncia

l inf

orm

atio

n an

d an

y ac

tiviti

es c

arrie

d ou

t by

th

e Ba

nk in

a t

rans

pare

nt m

anne

r to

its

shar

ehol

ders

and

the

pub

lic t

hrou

gh Q

atar

Exc

hang

e an

d th

e lo

cal n

ewsp

aper

s an

d th

e Ba

nk’s

web

site

. Th

e Ba

nk’s

Boar

d is

kee

n to

ens

ure

that

all

info

rmat

ion

is a

ccur

ate,

cor

rect

and

not

mis

lead

ing.

The

Cor

pora

te G

over

nanc

e Re

port

con

tain

s de

tails

on

the

com

posi

tion

of t

he B

oard

of

Dire

ctor

s as

wel

l as

info

rmat

ion

abou

t th

e Bo

ard

Mem

bers

and

the

Boa

rd C

omm

ittee

s.

Doh

a Ba

nk c

onfir

ms

that

all

finan

cial

sta

tem

ents

are

pre

pare

d in

acc

orda

nce

with

the

In

tern

atio

nal F

inan

cial

Rep

ortin

g St

anda

rds

and

the

rele

vant

QC

B re

gula

tions

, and

tha

t th

e ex

tern

al a

udito

r of

the

Ban

k pr

epar

es it

s re

port

s in

acc

orda

nce

with

the

Inte

rnat

iona

l Sta

ndar

ds

on A

uditi

ng (I

SA) a

fter

obt

aini

ng a

ll th

e ne

cess

ary

info

rmat

ion,

evi

denc

es a

nd c

onfir

mat

ions

and

fo

llow

ing

the

appr

opria

te a

udit

proc

edur

es.

The

Bank

has

pro

vide

d th

e sh

areh

olde

rs w

ith a

ll th

e in

terim

and

ann

ual fi

nanc

ial r

epor

ts.

21-2

: The

Boa

rd s

hall

ensu

re t

hat

all d

iscl

osur

e m

ade

by t

he C

ompa

ny p

rovi

des

accu

rate

and

tru

e in

form

atio

n w

hich

is n

ot n

on-m

isle

adin

g.ü

21-3

: The

Com

pany

’s fin

anci

al r

epor

ts m

ust

com

ply

with

IFRS

/IA

S an

d IS

A s

tand

ards

and

req

uire

men

ts.

In a

dditi

on t

o st

atin

g w

heth

er t

he e

xter

nal a

udito

r ob

tain

ed a

ll in

form

atio

n ne

eded

, the

ext

erna

l au

dito

r re

port

sha

ll al

so s

tate

whe

ther

the

Com

pany

con

form

s to

IFRS

/IAS

and

that

the

aud

it ha

s be

en

cond

ucte

d in

acc

orda

nce

with

IAS.

ü

21-4

: The

Com

pany

aud

ited

finan

cial

rep

orts

sha

ll be

circ

ulat

ed t

o al

l sha

reho

lder

sü

AR

TIC

LE (

22

)G

ener

al R

ight

s of

Sh

areh

olde

rs a

nd

Key

Ow

ners

hip

Elem

ents

Shar

ehol

ders

hav

e al

l rig

hts

conf

erre

d up

on t

hem

by

rela

ted

law

s an

d re

gula

tions

incl

udin

g th

is C

ode

as w

ell

as t

he C

ompa

ny’s

Art

icle

s of

Ass

ocia

tion;

and

the

Boa

rd s

hall

ensu

re t

hat

shar

ehol

ders

’ rig

hts

are

resp

ecte

d in

a f

air

and

equi

tabl

e m

anne

r.ü

Co

mm

un

icat

ing

wit

h S

har

eho

lder

s’:

Doh

a Ba

nk c

onsi

ders

its

shar

ehol

ders

as

key

stak

ehol

ders

. D

oha

Bank

has

est

ablis

hed

a Sh

areh

olde

r Re

latio

ns f

unct

ion

whi

ch is

res

pons

ible

for

add

ress

ing

shar

ehol

der

quer

ies.

AR

TIC

LE (

23

)O

wne

rshi

p Re

cord

s

23.1

: The

Com

pany

sha

ll ke

ep v

alid

and

up

to d

ate

reco

rds

of s

hare

ow

ners

hip.

ü

Doh

a Ba

nk c

an p

rovi

de g

ener

al in

form

atio

n su

ch a

s fin

anci

al s

tate

men

ts, a

rtic

les

of a

ssoc

iatio

n an

d by

-law

s of

the

Ban

k to

its

shar

ehol

ders

.

23.2

: Sh

areh

olde

rs s

hall

have

the

rig

ht t

o re

view

and

acc

ess

for

free

the

Com

pany

’s sh

areh

olde

rs’ r

egis

ter

at t

he C

ompa

ny’s

regu

lar

offic

e ho

urs

or a

s ot

herw

ise

dete

rmin

ed in

the

Com

pany

’s A

cces

s to

In

form

atio

n Pr

oced

ures

.ü

Cur

rent

ly, t

he s

hare

hold

er

regi

ster

det

ails

are

mai

ntai

ned

by t

he Q

atar

Exc

hang

e

23.3

: The

Sha

reho

lder

sha

ll be

ent

itled

to

obta

in a

cop

y of

the

fol

low

ing:

Boa

rd M

embe

rs’ r

egis

ter,

Art

icle

s of

Ass

ocia

tion

and

by-la

ws

of t

he C

ompa

ny, I

nstr

umen

ts c

reat

ing

a ch

arge

or

right

on

the

Com

pany

’s as

sets

, Rel

ated

par

ty c

ontr

acts

and

any

oth

er d

ocum

ent

as t

he A

utho

rity

may

dec

ide

upon

pay

men

t of

a p

resc

ribed

fee

.

ü


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

24

)A

cces

s to

In

form

atio

n

24-1

: The

Com

pany

sha

ll in

clud

e in

its

artic

les

of a

ssoc

iatio

n an

d by

-law

s Pr

oced

ures

of

Acc

ess

to In

form

atio

n to

ens

ure

that

sha

reho

lder

s rig

hts

of a

cces

s to

Com

pany

doc

umen

ts a

nd in

form

atio

n in

a t

imel

y m

anne

r an

d on

a r

egul

ar b

asis

, are

pre

serv

ed. T

he A

cces

s to

Info

rmat

ion

Proc

edur

es s

hall

be c

lear

and

de

taile

d an

d sh

all d

eter

min

e:

üD

oha

Bank

str

ives

to

prov

ide

shar

ehol

ders

with

suf

ficie

nt d

ata

to a

naly

ze D

oha

Bank

pe

rfor

man

ce a

nd t

o ta

ke d

ecis

ions

on

Boar

d M

embe

r el

ectio

ns a

nd o

ther

mat

ters

suc

h as

di

vide

nds

(a d

ivid

end

polic

y is

ado

pted

). D

oha

Bank

ens

ures

tha

t its

ass

embl

y m

eetin

gs a

nd t

he

mec

hani

sm f

or v

otin

g ad

opte

d is

in a

ccor

danc

e w

ith c

omm

erci

al c

ompa

nies

’ law

.

Acc

ess

to

In

form

ati

on

Doh

a Ba

nk h

as a

web

site

thr

ough

whi

ch a

ll in

form

atio

n ab

out

the

Bank

is p

ublis

hed,

suc

h as

the

ann

ual a

nd q

uart

erly

fina

ncia

l sta

tem

ents

and

the

Boa

rd o

f D

irect

ors’

Rep

ort

and

the

Cor

pora

te G

over

nanc

e Re

port

in a

dditi

on t

o th

e A

nnua

l Rep

ort

and

any

othe

r in

form

atio

n re

latin

g to

the

man

agem

ent

of t

he B

ank

and

the

Boar

d of

Dire

ctor

s an

d th

e pr

oduc

ts, s

ervi

ces

and

bran

ches

of

the

Bank

.

The

bank

has

inte

rnal

pr

oced

ures

allo

win

g sh

areh

olde

rs t

o ob

tain

the

co

mpa

ny’s

docu

men

ts a

nd

the

rele

vant

dat

a.

1.

the

Acc

essi

ble

Com

pany

Info

rmat

ion

incl

udin

g th

e ty

pes

of in

form

atio

n th

at is

mad

e ac

cess

ible

on

an o

n-go

ing

basi

s to

indi

vidu

al s

hare

hold

ers

or t

o sh

areh

olde

rs r

epre

sent

ing

a m

inim

um p

erce

ntag

e of

the

Com

pany

’s sh

are

capi

tal,

and

ü

2.

cle

ar a

nd e

xpre

ss p

roce

dure

s to

acc

ess

such

info

rmat

ion

ü

24-2

: The

Com

pany

sha

ll ha

ve a

web

site

whe

re a

ll re

leva

nt in

form

atio

n an

d pu

blic

info

rmat

ion

and

disc

losu

res

mus

t be

pos

ted.

Thi

s in

clud

es a

ll in

form

atio

n th

at is

req

uire

d to

be

mad

e pu

blic

by

this

Cod

e an

d an

y re

late

d la

ws

and

regu

latio

ns.

ü

AR

TIC

LE (

25

) Sh

areh

olde

rs

Righ

ts w

ith

Rega

rd

to S

hare

hold

ers’

M

eeti

ngs

The

Com

pany

’s ar

ticle

s of

ass

ocia

tion

and

by-la

ws

shal

l inc

lude

pro

visi

ons

ensu

ring

effe

ctiv

e sh

areh

olde

rs’

right

to

call

for

a G

ener

al A

ssem

bly

and

be c

onve

ned

in a

tim

ely

man

ner;

the

rig

ht t

o pl

ace

item

s on

the

ag

enda

, dis

cuss

mat

ters

list

ed o

n th

e ag

enda

and

add

ress

que

stio

ns a

nd r

ecei

ve a

nsw

ers

ther

eupo

n; a

nd t

he

right

to

mak

e in

form

ed d

ecis

ions

.ü

The

Bank

’s A

rtic

les

of A

ssoc

iatio

n in

clud

e pr

ovis

ions

tha

t en

sure

the

sha

reho

lder

’s rig

ht t

o at

tend

th

e G

ener

al A

ssem

bly

mee

tings

and

vot

e on

the

Gen

eral

Ass

embl

y’s

reso

lutio

ns a

nd h

ave

a nu

mbe

r of

vot

es e

qual

to

the

num

ber

of h

is s

hare

s. M

inor

s an

d in

com

pete

nt s

hare

hold

ers

shal

l be

rep

rese

nted

by

thei

r le

gal p

roxi

es a

t th

e m

eetin

g. E

ach

shar

ehol

der

has

the

right

to

disc

uss

the

topi

cs li

sted

in t

he a

gend

a of

Gen

eral

Ass

embl

y an

d ra

ise

ques

tions

to

the

boar

d m

embe

rs.

Votin

g at

the

Gen

eral

Ass

embl

y sh

all t

ake

plac

e by

rai

sing

han

ds o

r as

dec

ided

by

the

Gen

eral

A

ssem

bly.

Vot

ing

mus

t be

by

secr

et b

allo

t if

the

deci

sion

rel

ates

to

the

elec

tion

of t

he B

oard

m

embe

rs, o

r th

eir

dism

issa

l or

initi

atin

g le

gal p

roce

dure

s ag

ains

t th

em; o

r if

the

Cha

irman

of

the

Boar

d of

Dire

ctor

s or

a n

umbe

r of

sha

reho

lder

s co

mpr

isin

g at

leas

t on

e te

nth

of t

he v

oter

s pr

esen

t at

the

mee

ting

so r

eque

st.

Prox

y fo

r at

tend

ing

the

Gen

eral

Ass

embl

y is

per

mis

sibl

e, b

ut it

is s

tipul

ated

tha

t th

e pr

oxy

mus

t be

a

shar

ehol

der

and

it sh

ould

be

priv

ate

and

confi

rmed

in w

ritin

g. M

oreo

ver,

a sh

areh

olde

r m

ay n

ot

appo

int

one

of t

he B

oard

Mem

bers

to

atte

nd t

he m

eetin

gs o

f th

e G

ener

al A

ssem

bly

on h

is b

ehal

f.

Und

er a

ll ci

rcum

stan

ces,

the

num

ber

of s

hare

s w

hich

the

pro

xy p

osse

sses

in t

his

capa

city

may

no

t ex

ceed

5%

of

the

Bank

’s sh

are

capi

tal e

xcep

t in

the

cas

e w

here

the

pro

xy r

epre

sent

s Q

atar

In

vest

men

t A

utho

rity.

The

Gen

eral

Ass

embl

y sh

all m

eet

at t

he in

vita

tion

of t

he B

oard

of

Dire

ctor

s at

leas

t on

ce a

yea

r at

the

tim

e an

d pl

ace

dete

rmin

ed b

y th

e Bo

ard

of D

irect

ors

afte

r th

e ap

prov

al o

f th

e C

omm

erci

al

Aff

airs

Dep

artm

ent

at t

he M

inis

try

of E

cono

my

and

Com

mer

ce. T

he A

ssem

bly

shou

ld b

e co

nven

ed w

ithin

fou

r m

onth

s as

of

the

end

of t

he fi

nanc

ial y

ear

of t

he B

ank.

The

Boa

rd m

ay c

all

the

Gen

eral

Ass

embl

y fo

r co

nven

tion

whe

neve

r ne

cess

ary,

but

it s

houl

d ca

ll fo

r a

mee

ting

if su

ch

a re

ques

t ha

s be

en s

ubm

itted

for

ser

ious

rea

sons

by

the

audi

tor

or b

y a

num

ber

of s

hare

hold

ers

hold

ing

not

less

tha

n 10

% o

f th

e ca

pita

l with

in fi

ftee

n da

ys a

s of

the

dat

e of

the

req

uest

. Th

e Ex

trao

rdin

ary

Gen

eral

Ass

embl

y m

ay b

e co

nven

ed b

ased

upo

n an

invi

tatio

n fr

om t

he B

oard

of

Dire

ctor

s its

elf,

but

the

Boa

rd s

houl

d al

so c

all f

or s

uch

a m

eetin

g if

requ

este

d to

do

so b

y a

num

ber

of s

hare

hold

ers

hold

ing

at le

ast

25%

of

the

Bank

’s sh

are

capi

tal

AR

TIC

LE (

26

)Eq

uita

ble

Trea

tmen

t of

Sha

reho

lder

s an

d Ex

erci

se o

f Vo

ting

Rig

hts

26-1

: A

ll sh

ares

of

the

sam

e cl

ass,

sha

ll ha

ve t

he s

ame

right

s at

tach

ed t

o th

em.

üTh

e ba

nk’s

Art

icle

s of

Ass

ocia

tion

incl

ude

that

eac

h sh

areh

olde

r of

the

sam

e cl

ass

shal

l hav

e eq

ual r

ight

in t

he B

ank

asse

ts t

itles

and

the

pro

fits

dist

ribut

ed a

ccor

ding

to

the

num

ber

of

shar

es h

e ow

ns.

26-2

: Pr

oxy

votin

g is

per

mitt

ed in

com

plia

nce

with

rel

ated

law

s an

d re

gula

tions

.ü

AR

TIC

LE (

27

) Sh

areh

olde

rs’

Righ

ts C

once

rnin

g Bo

ard

Mem

bers

’ El

ecti

on

27-1

: The

Com

pany

’s ar

ticle

s of

ass

ocia

tion

and

by-la

ws

shal

l inc

lude

pro

visi

ons

ensu

ring

that

sha

reho

lder

s ar

e gi

ven

info

rmat

ion

rela

ting

to B

oard

Mem

bers

’ can

dida

tes

incl

udin

g a

desc

riptio

n of

can

dida

tes’

pr

ofes

sion

al a

nd t

echn

ical

ski

lls, e

xper

ienc

e an

d ot

her

qual

ifica

tions

üA

fter

not

ifyin

g th

e co

mpe

tent

reg

ulat

ory

auth

oriti

es, t

he B

ank

shal

l ann

ounc

e th

at n

omin

atio

ns

are

open

for

the

mem

bers

hip

of t

he B

oard

of

Dire

ctor

s in

the

loca

l new

spap

ers,

and

the

n th

e N

omin

atio

n &

Cor

pora

te G

over

nanc

e C

omm

ittee

, aft

er t

he c

losu

re o

f th

e no

min

atio

n pe

riod,

sh

all s

tudy

the

app

licat

ions

rec

eive

d fr

om s

hare

hold

ers.

All

info

rmat

ion

on t

he n

omin

ees

may

be

obt

aine

d by

sha

reho

lder

s by

vis

iting

the

Ban

k be

fore

the

Gen

eral

Ass

embl

y. A

fter

obt

aini

ng

appr

oval

fro

m t

he Q

atar

Cen

tral

Ban

k an

d th

e M

inis

try

of E

cono

my

and

Com

mer

ce, t

hese

na

mes

sha

ll be

sub

mitt

ed t

o th

e O

rdin

ary

Gen

eral

Ass

embl

y of

Sha

reho

lder

s to

ele

ct n

ew B

oard

M

embe

rs f

rom

the

nom

inee

s.

The

Bank

’s A

rtic

les

of

Ass

ocia

tion

give

s sh

areh

olde

rs

the

right

to

vote

on

the

Ass

embl

y’s

reso

lutio

ns a

nd

also

on

the

nom

inee

s fo

r Bo

ard

mem

bers

hip,

pur

suan

t to

Com

mer

cial

Com

pani

es

Law

No.

(11)

of

2015

whi

ch

refe

rs t

o Q

FMA

’s G

over

nanc

e C

ode

with

reg

ard

to p

ublic

sh

areh

oldi

ng c

ompa

nies

.

27-2

: Sha

reho

lder

s sh

all h

ave

the

right

to

cast

the

ir vo

tes

for

Boar

d M

embe

r’s e

lect

ion

by C

umul

ativ

e Vo

ting.

ü

AR

TIC

LE (

28

)

Shar

ehol

ders

’ Ri

ghts

Con

cern

ing

Div

iden

d D

istr

ibut

ion

The

Boar

d of

Dire

ctor

s sh

all s

ubm

it to

the

Gen

eral

Ass

embl

y a

clea

r po

licy

on d

ivid

end

dist

ribut

ion.

Thi

s sh

all i

nclu

de t

he b

ackg

roun

d an

d ra

tiona

le o

f su

ch p

olic

y in

ter

ms

of t

he b

est

inte

rest

of

the

Com

pany

and

th

e sh

areh

olde

rs.

ü

The

Boar

d of

Dire

ctor

s sh

all p

ropo

se t

he d

istr

ibut

ion

of d

ivid

ends

to

the

Gen

eral

Ass

embl

y ev

ery

year

acc

ordi

ng t

o th

e Ba

nk’s

polic

y fo

r di

vide

nd d

istr

ibut

ion

as a

ppro

ved

by t

he B

oard

of

Dire

ctor

s un

der

the

gove

rnan

ce p

olic

y an

d th

e Ba

nk’s

Art

icle

s of

Ass

ocia

tion.

The

Art

icle

s of

A

ssoc

iatio

n of

the

Ban

k al

low

the

dis

trib

utio

n of

div

iden

ds t

o th

e sh

areh

olde

rs a

fter

ded

uctin

g 10

% o

f th

e ne

t pr

ofit

of t

he b

ank

to b

e ap

prop

riate

d fo

r th

e le

gal r

eser

ve.

The

Gen

eral

A

ssem

bly

may

sus

pend

thi

s de

duct

ion

once

the

res

erve

rea

ches

100

% o

f th

e pa

id u

p ca

pita

l.

But

if th

is r

eser

ve b

ecom

es le

ss t

han

the

men

tione

d pe

rcen

tage

, the

n th

e de

duct

ion

shou

ld b

e re

sum

ed u

ntil

the

rese

rve

reac

hes

that

per

cent

age.

The

lega

l res

erve

may

not

be

dist

ribut

ed

to t

he s

hare

hold

ers

exce

pt in

the

cas

es p

erm

itted

by

the

Qat

ari C

omm

erci

al C

ompa

nies

Law

an

d af

ter

obta

inin

g th

e ap

prov

al o

f Q

atar

Cen

tral

Ban

k. U

pon

a pr

opos

al f

rom

the

Boa

rd o

f D

irect

ors,

the

Gen

eral

Ass

embl

y m

ay a

nnua

lly d

ecid

e to

ded

uct

a po

rtio

n of

the

net

pro

fits

to

the

optio

nal r

eser

ve a

ccou

nt.

This

res

erve

may

be

used

as

deem

ed fi

t by

the

Gen

eral

Ass

embl

y.

A p

ortio

n of

the

pro

fits

as d

eter

min

ed b

y th

e G

ener

al A

ssem

bly

shal

l be

dedu

cted

to

mee

t th

e ob

ligat

ions

impo

sed

on t

he c

ompa

ny b

y vi

rtue

of

the

Labo

ur L

aw.

The

rem

aini

ng p

rofit

am

ount

sha

ll th

en b

e di

strib

uted

to

the

shar

ehol

ders

or

shal

l be

brou

ght

forw

ard

to t

he n

ext

year

, bas

ed u

pon

a pr

opos

al f

rom

the

Boa

rd o

f D

irect

ors

and

subj

ect

to t

he a

ppro

val o

f th

e G

ener

al A

ssem

bly.


ART

ICLE

NU

MBE

RC

LAU

SE N

UM

BER

CO

MPL

IAN

CE

NO

N-

CO

MPL

IAN

CE

NO

TA

PPLI

CA

BLE

GO

VER

NA

NC

E A

PPLI

CA

TIO

NJU

STIF

ICA

TIO

N F

OR

NO

N

CO

MPL

IAN

CE

AR

TIC

LE (

29

)C

apit

al

Stru

ctur

es,

Shar

ehol

ders

’ Ri

ghts

, M

ajor

Tr

ansa

ctio

n

29-1

: Cap

ital S

truc

ture

s sh

ould

be

disc

lose

d an

d C

ompa

nies

sho

uld

dete

rmin

e th

e ty

pe o

f sh

areh

olde

rs

agre

emen

ts t

hat

shou

ld b

e di

sclo

sed.

ü

Doh

a Ba

nk is

a Q

atar

i sha

reho

ldin

g co

mpa

ny w

ith a

cap

ital o

f Q

R 2,

583,

722,

520

divi

ded

into

258

,372

,252

ord

inar

y no

min

al s

hare

s, a

t a

valu

e of

QR

(10)

per

sha

re, l

iste

d on

Qat

ar

Exch

ange

. With

the

exc

eptio

n of

Qat

ar H

oldi

ng “

The

Gov

ernm

ent

of Q

atar

”, w

hich

ow

ns

16.6

8% o

f th

e sh

ares

, any

nat

ural

or

lega

l per

son

neith

er s

hall

poss

ess

mor

e th

an 2

% o

f th

e ba

nk’s

shar

es n

or le

ss t

han

100

shar

es, w

ith t

he e

xcep

tion

of o

wne

rshi

p by

way

of

inhe

ritan

ce.

How

ever

, Qat

ar In

vest

men

t A

utho

rity

may

buy

and

ow

n up

to

20%

of

the

Bank

’s sh

are

capi

tal.

Th

e Ex

trao

rdin

ary

Gen

eral

Ass

embl

y m

ay a

ppro

ve t

he r

egis

trat

ion

of a

num

ber

of s

hare

s, n

ot

exce

edin

g 20

% o

f th

e sh

are

capi

tal,

in t

he n

ame

of a

tru

sted

dep

osita

ry a

gent

in t

he e

vent

of

a c

apita

l inc

reas

e th

roug

h th

e is

suan

ce o

f gl

obal

dep

osita

ry r

ecei

pts.

The

inve

stm

ent

fund

s sh

all b

e co

nsid

ered

as

a si

ngle

inve

stm

ent

grou

p, r

egar

dles

s of

the

ir nu

mbe

r, if

each

is

man

aged

by

one

natu

ral o

r ju

dici

al p

erso

n, o

r if

the

foun

der

in e

ach

is a

nat

ural

or

judi

cial

pe

rson

. In

the

se t

wo

case

s, t

he in

vest

men

t gr

oup

shal

l not

ow

n m

ore

than

2%

of

the

capi

tal

shar

es.

Fore

igne

rs, o

n th

e ot

her

hand

, may

inve

st in

the

sha

res

of t

he b

ank

up t

o 49

% o

f th

e is

sued

cap

ital.

Doh

a Ba

nk h

ereb

y co

nfirm

s th

at t

here

are

no

shar

ehol

der

agre

emen

ts r

elat

ed t

o ca

pita

l str

uctu

ring

and

the

exer

cise

of

shar

ehol

der

right

s.

29-2

: Com

pani

es s

hall

adop

t in

the

ir ar

ticle

s of

ass

ocia

tion

and/

or b

y-la

ws

prov

isio

ns f

or t

he p

rote

ctio

n of

min

ority

sha

reho

lder

s in

the

eve

nt o

f ap

prov

al o

f M

ajor

Tra

nsac

tions

whe

re t

he s

aid

min

ority

sh

areh

olde

rs h

ave

vote

d ag

ains

t su

ch M

ajor

Tra

nsac

tions

.ü

The

Bank

’s A

rtic

les

of

Ass

ocia

tion

give

eac

h sh

areh

olde

r th

e rig

ht t

o vo

te o

n th

e re

solu

tions

of

the

Gen

eral

Ass

embl

y,

whe

re e

ach

shar

ehol

der

is e

ntitl

ed t

o on

e vo

te p

er

shar

e. T

he b

ank’

s A

rtic

les

of

Ass

ocia

tion

do n

ot in

clud

e an

y pr

ovis

ions

for

min

ority

rig

hts

nor

a m

echa

nism

en

surin

g th

e la

unch

of

sale

off

er t

o th

e pu

blic

or

ensu

ring

exer

cisi

ng t

he

right

s of

equ

ality

in s

ellin

g sh

ares

in c

ase

ther

e is

a

chan

ge in

the

ow

ners

hip

of

the

bank

’s ca

pita

l rel

ated

to

a sp

ecifi

c pe

rcen

tage

.

29-3

: Com

pani

es s

hall

adop

t in

the

ir ar

ticle

s of

ass

ocia

tion

and/

or b

y-la

ws,

a m

echa

nism

ens

urin

g th

e tr

igge

r of

a p

ublic

off

er o

r th

e ex

erci

se o

f Ta

g A

long

Rig

hts

in t

he c

ase

of a

cha

nge

in o

wne

rshi

p ex

ceed

ing

a sp

ecifi

c pe

rcen

tage

(thr

esho

ld).

It sh

all t

ake

into

con

side

ratio

n up

on it

s de

term

inat

ion

the

thre

shol

d of

the

sha

res

owne

d by

thi

rd p

arty

but

con

trol

led

by t

he d

iscl

osed

sha

reho

lder

incl

udin

g th

e sh

ares

rel

ated

to

shar

ehol

ders

agr

eem

ent

whi

ch s

houl

d be

dis

clos

ed.

ü

AR

TIC

LE (

30

) St

akeh

olde

rs’

Righ

ts

30-1

: The

rig

hts

of S

take

hold

ers

are

to b

e re

spec

ted.

Whe

re S

take

hold

ers

part

icip

ate

in t

he c

orpo

rate

go

vern

ance

arr

ange

men

ts; t

hey

shal

l hav

e ac

cess

to

rele

vant

, suf

ficie

nt a

nd r

elia

ble

info

rmat

ion

on

a tim

ely

and

regu

lar

basi

s.ü

Doh

a Ba

nk e

ndea

vors

to

mai

ntai

n eq

uita

ble

and

fair

trea

tmen

t of

all

its s

take

hold

ers.

To

enha

nce

ethi

cal c

ondu

ct b

y th

e Ba

nk’s

empl

oyee

s, e

ach

empl

oyee

mus

t ab

ide

by D

oha

Bank

’s C

ode

of E

thic

s w

hich

stip

ulat

es e

thic

al p

rinci

ples

tha

t ea

ch e

mpl

oyee

mus

t de

mon

stra

te.

Any

br

each

es o

f et

hica

l con

duct

are

inve

stig

ated

and

, as

appr

opria

te, d

isci

plin

ary

and

corr

ectiv

e ac

tion

is t

aken

. M

oreo

ver,

Doh

a Ba

nk h

as e

stab

lishe

d a

whi

stle

-blo

win

g po

licy,

whe

reby

em

ploy

ees

can

repo

rt c

once

rns

with

out

fear

of

retr

ibut

ion.

Suc

h co

ncer

ns a

re r

evie

wed

and

, as

nec

essa

ry, i

nves

tigat

ed a

nd r

epor

ted

to t

he A

udit,

Com

plia

nce

and

Risk

Com

mitt

ee.

It is

als

o w

orth

not

ing,

tha

t D

oha

Bank

has

sta

ndar

dize

d its

pro

cess

es r

elat

ed t

o co

mpe

nsat

ion

and

asse

ssm

ent

of e

mpl

oyee

s by

ado

ptin

g a

perf

orm

ance

app

rais

al s

chem

e an

d a

staf

f co

mpe

nsat

ion

and

bene

fits

stru

ctur

e.

30-2

: The

Boa

rd o

f D

irect

ors

shal

l ens

ure

that

the

Com

pany

’s em

ploy

ees

are

trea

ted

acco

rdin

g to

the

pr

inci

ples

of

fairn

ess

and

equi

ty a

nd w

ithou

t an

y di

scrim

inat

ion

wha

tsoe

ver

on t

he b

asis

of

race

, ge

nder

, or

relig

ion.

ü

30-3

: The

Boa

rd s

hall

deve

lop

a re

mun

erat

ion

polic

y an

d pa

ckag

es t

hat

prov

ide

ince

ntiv

e fo

r th

e em

ploy

ees

and

man

agem

ent

of t

he C

ompa

ny t

o al

way

s pe

rfor

m in

the

bes

t in

tere

sts

of t

he C

ompa

ny. T

his

polic

y sh

ould

tak

e in

to c

onsi

dera

tion

the

long

ter

m p

erfo

rman

ce o

f th

e C

ompa

ny.

ü

30-4

: The

Boa

rd s

hall

adop

t a

mec

hani

sm e

nabl

ing

com

pany

em

ploy

ees

to r

epor

t to

the

Boa

rd s

uspi

ciou

s be

havi

or, w

here

suc

h be

havi

or is

une

thic

al, i

llega

l, or

det

rimen

tal t

o th

e C

ompa

ny. T

he B

oard

sha

ll en

sure

tha

t th

e em

ploy

ee a

ddre

ssin

g th

e Bo

ard

shal

l be

affo

rded

con

fiden

tialit

y an

d pr

otec

ted

from

an

y ha

rm o

r ne

gativ

e re

actio

n by

oth

er e

mpl

oyee

s or

the

em

ploy

ee’s

supe

riors

.

ü

30-5

: Com

pani

es m

ust

fully

adh

ere

to t

he p

rovi

sion

s of

thi

s ar

ticle

as

it is

exc

lude

d fr

om t

he “

com

ply

or

expl

ain

non-

com

plia

nce”

prin

cipl

e.ü

AR

TIC

LE (

31

)Th

e C

orpo

rate

G

over

nanc

e Re

port

31-1

: The

Boa

rd s

hall

prep

are

an a

nnua

l Cor

pora

te G

over

nanc

e Re

port

sig

ned

by t

he C

hairm

an.

ü

31-2

: The

Gov

erna

nce

Repo

rt s

hall

be s

ubm

itted

to

the

Aut

horit

y on

an

annu

al b

asis

and

whe

neve

r re

quire

d by

the

Aut

horit

y. T

he c

ompl

ianc

e w

ith t

he a

nnua

l dis

clos

ure

shal

l be

atta

ched

to

the

annu

al r

epor

t pr

epar

ed b

y th

e co

mpa

ny.

ü

31-3

: The

Art

icle

of

Gov

erna

nce

Repo

rt s

hall

be in

clud

ed in

the

age

nda

of t

he c

ompa

ny’s

Ord

inar

y G

ener

al

Ass

embl

y M

eetin

g. F

urth

er, a

cop

y of

the

sam

e sh

all b

e di

strib

uted

to

the

shar

ehol

ders

in t

he m

eetin

g.ü

31-4

: The

sai

d Re

port

sha

ll be

pub

lishe

d an

d sh

all i

nclu

de a

ll in

form

atio

n re

late

d to

the

app

licat

ion

of t

his

Cod

e, in

clud

ing

nota

bly:

ü

1. P

roce

dure

s fo

llow

ed b

y th

e C

ompa

ny in

thi

s re

spec

t.ü

2. D

iscl

ose

any

viol

atio

ns c

omm

itted

dur

ing

the

finan

cial

yea

r, th

eir

reas

ons

and

the

rem

edia

l mea

sure

s ta

ken

and

mea

sure

s to

avo

id t

he s

ame

in t

he f

utur

e.ü

3. D

iscl

ose

the

Mem

bers

of

the

Boar

d of

Dire

ctor

s an

d its

Com

mitt

ees

and

thei

r re

spon

sibi

litie

s an

d ac

tiviti

es d

urin

g th

e ye

ar, a

ccor

ding

to

the

cate

gorie

s an

d te

rms

of o

ffice

of

said

mem

bers

alo

ng w

ith

the

met

hod

of d

eter

min

ing

the

Dire

ctor

s an

d Se

nior

Exe

cutiv

e M

anag

ers

rem

uner

atio

n.ü

4. D

ecla

ratio

n of

the

Inte

rnal

Con

trol

pro

cedu

res

incl

udin

g pa

rtic

ular

ly t

he C

ompa

ny’s

over

sigh

t of

fin

anci

al a

ffai

rs, i

nves

tmen

ts, a

nd r

isk

man

agem

ent.

ü

5. D

iscl

ose

the

proc

edur

e fo

llow

ed b

y th

e C

ompa

ny in

det

erm

inin

g, e

valu

atin

g an

d m

anag

ing

sign

ifica

nt

risks

, a c

ompa

rativ

e an

alys

is o

f th

e C

ompa

ny’s

risk

fact

ors

and

disc

ussi

on o

f th

e sy

stem

s in

pla

ce t

o co

nfro

nt d

rast

ic o

r un

expe

cted

mar

ket

chan

ges.

ü

6. D

iscl

ose

asse

ssm

ent

of t

he p

erfo

rman

ce o

f th

e Bo

ard

and

seni

or m

anag

emen

t in

impl

emen

ting

the

Inte

rnal

Con

trol

sys

tem

s, in

clud

ing

the

num

ber

of t

imes

whe

n th

e Bo

ard

was

not

ified

of

cont

rol i

ssue

s (in

clud

ing

risk

man

agem

ent)

and

the

way

suc

h is

sues

wer

e ha

ndle

d by

the

Boa

rd;

ü

7. D

iscl

ose

the

failu

re t

o im

plem

ent,

par

tly o

r en

tirel

y, t

he in

tern

al c

ontr

ol s

yste

mü

8. D

iscl

ose

the

com

pany

’s co

mpl

ianc

e w

ith a

pplic

able

mar

ket

listin

g an

d di

sclo

sure

rul

es a

nd

requ

irem

ents

; ü

9. D

iscl

ose

the

Com

pany

’s co

mpl

ianc

e w

ith In

tern

al C

ontr

ol s

yste

ms

in d

eter

min

ing

and

man

agin

g ris

ksü

10. A

ll re

leva

nt in

form

atio

n de

scrib

ing

the

Com

pany

’s ris

k m

anag

emen

t op

erat

ions

and

Inte

rnal

Con

trol

pr

oced

ures

.ü

Fah

ad B

in M

oh

amm

ed B

in J

abo

r A

l Th

ani

Cha

irman

1

Qat

ar2

D

ub

ai

3

Ab

u D

hab

i4

K

uw

ait

Cit

y5

M

um

bai

6

Ko

chi

7

Lon

do

n8

Fr

ankf

urt

9

Ista

nb

ul

10 S

ing

apo

re11

Sh

ang

hai

12 S

eou

l13

To

kyo

14 H

on

g K

on

g15

Syd

ney

16 T

oro

nto

17 S

har

jah

18 J

oh

ann

esb

urg

19 D

hak

a

طر ق

1

يدب

2

يظب

و أب

3ت

ويك

ال 4

يبا

وم م

5ي

شوت

ك

6ن

دلن

7ت

وركف

ران ف

8ل

بوطن

س ا

9رة

فوغا

سن 1

0ي

هاغ

شن 1

1ل

يوس

12

يوك

طو 13

غون

كغ

ونه

14

يدن

سي 1

5تو

ونور

ت16

قةار

ش ال

17رج

بوس

انه

جو 1

8كا

دا 1

9

his highness sheikh hamad bin khalifa al-thani · 2017. 3. 2. · his highness sheikh hamad bin...

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