CMA LAW: "Imminent Effective Date of CMA Board of Commissioners Resolution No. (24) of 2013 Regarding the Controls for the Nomination Process for Licensed Person's Board of Directors"

---

The Capital Markets Authority is keen to enhance legal awareness and seeks to enforce its various legislations and protect persons engaged in securities activities against commitment of violations, the Authority reminds all licensed persons of the imminent effective date of CMA Board of Commissioners Resolution No. (24) of 2013 issued on 29^th of last May regarding the Controls for the Nomination Process for Licensed Person's Board of Directors, which shall come into force after three months from the issue date thereof.

The Authority draws the attention of all parties concerned with such resolution to enforce it on the set date thereof and emphasizes the necessity for applying its various legislations, in particular those related to corporate governance for companies subject to its supervision. The said resolution includes provisions regulating the nomination process for membership of the board of directors including the prescribed announcement mechanisms. The resolution stipulates the importance of providing the Capital Markets Authority with the names of such candidates as per the approved forms attached to CMA instruction on efficiency and integrity rules, and subsequently giving notice to the Capital Markets Authority of the names of directors immediately upon electing them by the company's general assembly.

Finally, while reminding of the effective date of such resolution, the Capital Markets Authority anticipates that the entities governed by the provisions of Law No. (7) of 2010 and the Executive Bylaw thereof shall comply with the provisions of such rules to avoid committing violations and being liable to accountability. 

---