Regulatory Alerts2021-01-01
Added · Updated
Law No. (8) of 2021 Amending Certain Provisions of the Commercial Companies Law Issued by Law No. (11) of 2015
This law amends the Commercial Companies Law by renaming the Ministry of Commerce and Industry to the Ministry of Economy and Commerce and replacing the term 'auditor' with 'accountant supervisor'. It introduces new definitions for depositary institutions, senior executive management, subsidiaries, and minorities, and mandates specific corporate governance rules for listed companies, including electronic shareholder meetings and secret ballots for board elections. The amendments impose strict disclosure requirements for related-party transactions exceeding 10% of market value, require detailed financial disclosures regarding director compensation, and establish a 51% threshold for major asset disposals requiring extraordinary general assembly approval. Additionally, it prohibits cross-shareholdings between parent and subsidiary companies and grants minority shareholders enhanced rights to inspect documents and sue for damages in cases of non-disclosure.
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