MC

The Ministry of Commerce and Industry & the Capital Market Authority signed a memorandum of joint cooperation, containing the mechanism of cooperation and the coordination of policies and procedures regarding the application of the provisions of the new corporate law, according to the rules consistent with transparency, control and governance standards.

This comes in pursuit of MCI & CMA to cooperate and coordinate the policies and procedures during the application of the corporate law, in order to achieve the integration and harmony in the implementation of the objectives of such law.

MCI & CMA confirmed in a joint statement the exercise of the regulatory, control and supervisory role, each in its competences, on the works and performance of the corporate board of directors, as well as the shareholders committees and other issues, also issuing the implementing regulations and the corporate governance rules, in accordance with the best comparative regulatory practices, and in consistent with the general policies of the corporate law, and in away responding to the needs of the commercial and financial sectors.

Based on the principle of transparency, MCI & CMA express their intention to publish the corporate draft regulations, for reviewing the opinions of the public during the coming months.

It is worth mentioning that the new corporate law has assigned to the Ministry of Commerce and Industry and the Capital Market Authority the regulatory and supervisory functions and tasks on the companies operating in the Kingdom.

The competences of the Ministry of Commerce and Industry are related to all companies, except the joint stock companies, listed on the Saudi Stock market, to be under the supervisory and control of the capital market authority. Therefore, H.E. the Minister of Commerce and Industry and the Council of the Capital Market Authority are authorized to issue the necessary rules, regulations and decisions for the implementation of the new corporate law.