Regulatory Alerts2020-12-06
Added · Updated
Corporate Governance Instructions for Microfinance Companies No. (10/2020)
The Central Bank of Jordan issued Corporate Governance Instructions No. (10/2020) applicable to all microfinance companies operating in the Kingdom, with an effective date one year from issuance. The regulations mandate a Board of Directors of at least five members, including a minimum of two independent members or 20% of the Board, and require the establishment of Audit, Risk Management, and Nomination and Remuneration committees. Specific obligations include the creation of a Corporate Governance Manual, the appointment of a Sharia Supervisory Board of at least three members, and strict adherence to fitness and independence criteria for board members and senior executive management.
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