H.E. Sultan Al Mansoori issues new decisions
The Guide to the Governance of Public Joint-Stock Companies provides a legal framework that regulates corporate affairs
H.E. Eng. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Board of the Securities and Commodities Authority (SCA), introduced new legislation comprising two new decisions and a third decision amending an existing regulation. The decisions, already approved by the board, are as follows:
1. The Chairman of the Authority’s Board of Director’s Decision No. (03/Chairman) of 2020 Approving the Guide to the Governance of Public Joint-Stock Companies.
2. The Chairman of the Authority’s Board of Director’s Decision No. (05/Chairman) of 2020 concerning the Fit and Proper Criteria.
3. The Chairman of the Authority’s Board of Director’s Decision No. (04/Chairman) of 2020 amending the Chairman of the Authority’s Board of Director’s Decision No. (157/Chairman) of 2005 concerning the Regulations on Listing and Trading Commodities and Commodity Contracts.
The decision approving the guide to corporate governance provides a framework for the regulation of corporate affairs. Its provisions are based on the provisions of Federal Law No. (2) of 2015 on Commercial Companies.
All public joint-stock companies are expected to comply with the decision while SCA, being a regulator of such companies, will oversee compliance. It is worth noting that the main pillars of corporate governance are accountability, fairness, disclosure, transparency, and responsibility. Corporate governance includes a set of rules and controls by which companies are directed and controlled and institutional discipline in corporate relations is ensured. The framework follows international standards as it identifies the obligations and duties of board members and the executive management. It ensures the protection of the rights of shareholders and stakeholders while achieving corporate sustainability.
Click the link below to view the new legislation.
new legislation