Regulatory Alerts2018-03-04
Main Principles of Governance for Banks Operating in Saudi Arabia - Definition of Independent Member
The Saudi Arabian Monetary Authority cancels paragraph (e) of the Main Principles of Governance for Banks Operating in Saudi Arabia, which previously disqualified independent board members serving on companies with direct or indirect credit relationships. The updated directive clarifies that such membership does not automatically impair independence if the relationship involves current or future banking facilities, provided banks enforce their Conflict of Interest policies. These policies must require the affected member to abstain from related deliberations and decisions, while mandating full disclosure of these circumstances to the Board of Directors and the General Assembly.
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