The Board of Directors of Securities and Commodities Authorities (SCA) has issued resolution no (7) of 2016 concerning regulations for institutional controls and governance of public joint stock companies.
The new governance resolution combines a bundle of regulations in relation to the subject and implementation of the provisions of the Commercial Companies Law in addition to corporate governance which will make it easier for local and foreign companies and investors as they would now have to deal with a single piece of legislation.
The 55-article legislation, which has three chapters - institutional controls, corporate governance and general provisions -- will take affect one day after being published in the official gazette. Once issued, the new resolution will render null and void any resolution, circular or other regulations that contradict its provisions.
Promulgated as per best international practices, the new legislation will contribute to sharpening the UAE's competitive edge in a series of international indices, including the World Bank's Ease of Doing Business Report.