It affirmed that all shareholders in the "company" are equal in rights and duties

“Securities”: 4 categories to which the “Insiders” trading ban applies.

The "Authority" has put in place guarantees that protect shareholders from the existence of a conflict of interest.

Photography: Patrick Castillo

The Securities and Commodities Authority confirmed that the legislation in force in the financial markets has defined four categories of officials and employees in public joint-stock companies, to whom the prohibition of "insider trading" applies.

In an awareness leaflet, which Emirates Today obtained a copy of, it stated that “insiders” mean, according to the legislation: the chairman, members of the board of directors of the company whose securities are listed in the market, its general manager, or any of the employees familiar with the data Company core;

As the legislation in force prohibits any of them from disposing of himself or through others, dealing in the securities of the same company, or in the securities of the parent, subsidiary, affiliate, or sister company of that company.

Trading ban

The "securities" indicated that the trading ban periods for insiders are: 10 working days before the announcement of any material information that would affect the share price, up or down, unless the information resulted from sudden and sudden events, and before ( 15) days from the end of the quarterly, semi-annual, and annual financial period, until the disclosure of its financial statements.

The "securities" stated that the "legal entity" is considered informed, whenever he is represented on the board of directors of the listed company, as he is considered an informed person about it, and is subject to the periods of banning trading mentioned in Article (14) of the Authority's Board of Directors Decision No. (2) of 2001 regarding The system for trading, clearing, settlements, transfer of ownership, and custody of securities.

Conflict of interest

The Securities and Commodities Authority indicated that guarantees have been put in place to protect shareholders from the existence of a conflict of interest with a member of the Board of Directors.

She explained that the Chairman of the Authority’s Board of Directors Decision No. (3 / R.M) for the year 2020 AD regarding the approval of the Governance Manual for Public Joint Stock Companies, was organized in Chapter Three of it, specifically in Articles (32) to (39), Conflict of Interest Management. And dealings with the relevant parties, as Article No. (32) of the guide indicated the procedures and special controls, in the event of a conflict of interest for a member of the board of directors or the entity he represents, while Article No. (33) regulated how to prepare an integrated record for all informed persons, and how to manage it Follow it up and supervise it.

As for articles (34, 35 and 36), they dealt with the procedures and controls that regulate the conclusion of deals with related parties, with an explanation that the deals that are part of the nature of the company's business and do not give a member of the board preferential conditions, that they do not constitute a conflict of interest, in addition to the necessity Preparing a record of all transactions that are concluded with related parties.

In turn, Articles (37, 38 and 39) regulate, in detail, the procedures and requirements for disclosure of deals with related parties.

Everyone is equal

The "securities" affirmed that it is not permissible for a listed public shareholding company to allow one of its major shareholders to view its data and information before disclosing it to the rest of the shareholders in the market in which its shares are listed, since the principle is that all the shareholders of the company are equal in rights and duties. No shareholder may be granted the right to view the financial statements and important information related to the company before disclosing it to the rest of the shareholders.

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