Regulatory Alerts2023-03-12
Added · Updated
Amendment to Corporate Governance Instructions for Licensed Microfinance Companies
The Central Bank of Jordan amends the Corporate Governance Instructions for Licensed Microfinance Companies (No. 2020/10) to permit board and committee meetings to be held via electronic means or a hybrid of in-person and electronic attendance. The amendments modify Articles 5 and 9 to allow electronic participation provided that meeting minutes are signed by the chair or their deputy and the secretary to validate the proceedings. Article 12 is adjusted by deleting a clause and renumbering subsequent items. These changes take effect immediately upon the date of the circular.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 4791 / 2/28 Date: 16 / 8 / 1444 AH Corresponding to: 8 / 3 / 2023 AD
Circular to Licensed Microfinance Companies
Greetings,
Subsequent to the Corporate Governance Instructions for Microfinance Companies No. (2020/10) dated 2020/12/6 and continuing the Central Bank of Jordan's approach of reviewing its issued legislation to keep pace with developments, the Instructions are amended as follows:
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Item (c) of Article (5) is amended to read as follows: "The Company may hold Board meetings through electronic means, provided that the Chairman of the Board or his deputy in case of his absence, and the Secretary of the Board, sign the meeting minutes and the legality of the meeting's convening, and document this according to the proper procedures."
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Item (d) is added to Article (5) with the following text: "The Company may hold Board meetings through both in-person attendance and electronic means, provided that the invitation to the meeting specifies this."
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Item (w) of Article (9) is amended to read as follows: "Committee members may attend meetings through any of the electronic means, provided that the Chairman of the Committee or his deputy in case of his absence signs the meeting minutes and the legality of the meeting's convening, and documents this according to the proper procedures. It is also permissible to attend these meetings through both in-person attendance and electronic means."
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Item (h) of Article (12) is repealed, and items (w, z) of the same Article are renumbered as (h, w) respectively.
This circular shall be implemented from its date, and anything inconsistent with its contents is repealed.
Please accept our highest respect,
[Signature] Governor Dr. Adel Al-Sharkas