In its session held on 6/2/2008, the CMA Board issued resolution no. (2), amending the Securities Listing and Delisting Rules at the Stock Exchange. This is to improve the scope of disclosure of the transactions made by board members and other concerned parties with listed companies, to provide more protection to investors in the market, to create more transparency regarding the transactions between the company itself ,members of the board of directors of other companies ,concerned parties and the company officials .
The amendments included Articles (7), (17), (19) and (24) of the said Listing Rules, to add new areas of responsibility to the review committee of the company, which are to confirm due application of control methods to keep and maintain the company's assets, to confirm that the independent financial adviser examines the transactions made with concerned parties, and to confirm that the general assembly has the authority required to approve these transactions for shareholders to be able to control these transactions. The amendments contained a provision considering the transactions with concerned parties as material events with remarkable effect on share price in the market, which in turn requires that transactions must be disclosed in the Stock Exchange upon conclusion thereof and must be publicized to all dealers.
It is worthy to note that Listing and De-Listing Rules at the Stock Exchange include a large number of rules regarding financial and non-financial disclosure by listed companies, which provides as much information as possible to dealers and accordingly enables all market investors and their shareholders to take proper investment decisions.
To review the said resolutionClick here