Regulatory Alerts2023-03-12
Added · Updated
Amendment to Corporate Governance Instructions for Microfinance Companies No. 2020/10
The Central Bank of Jordan amends the Corporate Governance Instructions for Microfinance Companies to permit board and committee meetings to be held via electronic means or a hybrid of physical and electronic attendance. Specifically, Article 5 is updated to allow electronic board meetings upon approval and documentation by the Chairman and Secretary, while Article 9 allows committee members to attend electronically with Chairman approval. Additionally, Article 12 item (h) is repealed and subsequent items are renumbered. These changes apply to licensed microfinance companies and take effect immediately upon the circular's date.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 4791 / 2/28 Date: 16 / 8 / 1444 AH Corresponding to: 8 / 3 / 2023 AD
Circular to Licensed Microfinance Companies
Greetings,
Following 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, approve the meeting minutes and the legal convening of the meeting, and document this properly."
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Item (d) is added to Article (5) with the following text: "The Company may hold Board meetings through both physical presence 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 approves the meeting minutes and the legal convening of the meeting, and documents this properly. It is also permissible to attend these meetings through both physical presence 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Item (h) of Article (12) is repealed, and Items (w, z) of the same Article are renumbered as (h, w) respectively.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 effective from its date, and anything conflicting with its contents is repealed.
Please accept our highest regards,
[Signature] Governor Dr. Adel Al-Sharkas