In line with it`s incessant efforts towards boosting of  transparency in the Capital Market and development of the corporate governance standards, the CMA Board has issued it’s resolution No. 2008-20-1  dated 14/5/1429H, corresponding to 19/5/2008, concerning amendment of clause (A) of article (18) of the corporate governance regulations which are issued by  the CMA Board under resolution No. 2006-212-1 dated 21/10/1427H, corresponding to 12/11/2006, to quote “ the board member may not- except by approval of the general assembly meeting which have to be renewed on an annual basis- have any interest (either direct or indirect) in any of the transactions or contracts that are made for the account of the company, and this requirement shall not be applicable to transactions of public competition , if the board member is the lowest bidder. The board member should disclose to the Board his personal interest in the transactions and contracts that are made for the account of the company, and such disclosure shall be recorded in the minutes of the meeting. The member having any interest in such contracts and transactions may not vote on the relevant decision during the board meeting, or the general assembly meeting, and the Chairman of the board should disclose to the general assembly meeting, on convening thereof, the transactions and contracts which any of the board members have personal interest in, and such disclosure should be recorded in the auditor’s report”.                                                            

The amendment shall be effective an in full from publication thereof.

To have access to the corporate governance regulations, click here.