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logo of The Ministry of Commerce and the Capital Market Authority (CMA)
The Ministry of Commerce and the Capital Market Authority (CMA) published the draft executive regulations for the new Companies Law for public view for a period of 15 days.
The draft regulations aim to facilitate procedures and regulatory requirements to stimulate the business environment and support investment, provide an effective and fair framework for corporate governance, contribute to attracting domestic and foreign investments and provide sustainable financing sources, the CMA said in a statement.
The major elements included in the draft are the clarification of the mechanism for submitting the company's financial statements, board and auditor's reports, statement of the detailed provisions for diligence and loyalty of board members and determination of the method of voting in board elections.
The draft also includes regulating the duration of the board members continuity at the end of the board term or the resignation of its members until the election of a new board, and regulating the controls for dividend distribution.
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