Saudi Arabia’s Capital market Authority (CMA) has amended regulations for joint stock companies under the Companies Law as well as corporate governance regulations, the market regulator said in a statement on Monday.
The new amendments will come into effect upon publication in the official gazette.
Regulations for share buybacks, sale and pledging were amended to facilitate the repurchase process, as the market discloses these processes on a quarterly basis.
Listed companies are also required to immediately inform the market of buyback transactions and the related purpose. The equity market will publish this information in its periodical reports.
For licensing corporate contracts, the general assemblies will be authorized to license the contracts signed in favor of companies, under which board members have direct or indirect interest.
The new amendment will apply on condition that the total value of the contract – or contracts during a fiscal year – is less than 1 percent of revenue (less than SAR 10 million). The contracts shall be in line with the normal operations of those firms.
Contracts will not include preferential terms for board directors.
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