A regulatory body in the Emirates that prohibits gifts from corporate boards

The Securities and Commodities Authority issued a decision regarding the approval of the Corporate Governance Guide for public joint-stock companies, whereby the guide stressed the need for an annual evaluation of the performance of members of boards of directors, as well as the inadmissibility of accepting gifts.

According to the evidence, this does not preclude the acceptance of items of symbolic or simple value of 500 dirhams or less or entertainment of symbolic or simple value that is not related to any special transaction or special activity of the company.

The evidence indicated that the company's articles of association specify the method of formation of the Board of Directors, the number of its members and the duration of membership, provided that the representation of women is not less than 20% of the formation of the Board of Directors.

In detail, the Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, Engineer Sultan Al-Mansoori, issued a decision regarding the approval of the Corporate Governance Guide for public joint stock companies, which provides a necessary framework for the regulation of corporate affairs, to be implemented within two months of the date of its publication in the Official Gazette.

The guide included a clause stipulating the necessity of an annual evaluation by the Board of Directors of its performance and the performance of its members and committees to determine ways to enhance its effectiveness, either through the Nominations and Remuneration Committee or by the Chairman of the Board with the support of the Secretary of the Board of Directors as needed to do so, and in case of need it may invite Independent consultants to assist the board of directors in this process.

The guide touched on the members of the board of directors receiving gifts, explaining that accepting gifts or other courtesies from people or organizations may result in conflict or duplication of interests when the party providing this gift / courtesy does so in circumstances that may conclude that this behavior was aimed at affecting Or it may affect the council member in the performance of his duties.