tiktok���˰�

A Corporate Governance Document lays out the rules, processes, and practices that guide how a Saudi company operates and makes decisions. It spells out key responsibilities between shareholders, board members, and executives while following the Kingdom's Companies Law and Capital Market Authority regulations.

The document covers essential areas like shareholder rights, board composition, disclosure policies, and internal controls. It helps Saudi businesses maintain transparency, protect stakeholder interests, and align with Sharia principles - making it a crucial tool for both listed companies on Tadawul and private enterprises aiming to strengthen their governance structure.

Use a Corporate Governance Document when launching or restructuring a Saudi company, particularly before seeking investment or going public on Tadawul. It's essential during major organizational changes like mergers, leadership transitions, or when expanding operations across the Kingdom.

This framework becomes vital during board elections, shareholder meetings, and when setting up new committees. Companies also rely on it to navigate CMA requirements, handle conflicts of interest, and establish clear reporting lines. Having it ready helps prevent disputes, speeds up decision-making, and demonstrates commitment to transparency - especially when dealing with international partners or investors.

• Basic Corporate Governance Framework: Standard version for private companies, focusing on essential board structures and shareholder rights
• Listed Company Edition: Enhanced version meeting Tadawul and CMA requirements, with detailed sections on market disclosure and investor relations
• Family Business Adaptation: Specialized framework balancing family ownership dynamics with professional management principles
• Sharia-Compliant Version: Modified structure ensuring alignment with Islamic finance principles and the Kingdom's religious requirements
• Subsidiary Governance Model: Streamlined version for companies operating as part of larger corporate groups in Saudi Arabia

• Board of Directors: Approves and oversees the Corporate Governance Document, ensuring company-wide compliance and regular updates
• Executive Management: Implements governance policies, maintains internal controls, and reports to the board on compliance
• Legal Counsel: Drafts and reviews the document to ensure alignment with CMA regulations and Saudi Companies Law
• Shareholders: Exercise rights outlined in the document, particularly during general assemblies and major decisions
• Compliance Officers: Monitor adherence to governance rules and report violations to relevant authorities
• External Auditors: Verify compliance with governance requirements and provide independent assessment

• Company Structure: Gather details about shareholding patterns, board composition, and organizational hierarchy
• Regulatory Review: Check current CMA guidelines and Saudi Companies Law requirements for your business type
• Stakeholder Input: Collect feedback from board members and major shareholders on governance priorities
• Industry Standards: Research governance practices common in your sector on Tadawul
• Internal Policies: List existing procedures for decision-making, risk management, and compliance
• Documentation: Prepare company bylaws, committee charters, and reporting templates
• Islamic Compliance: Ensure alignment with Sharia principles where applicable

• Board Structure: Detailed composition rules, member qualifications, and term limits per CMA guidelines
• Shareholder Rights: Voting procedures, dividend policies, and mechanisms for protecting minority interests
• Committee Framework: Roles and responsibilities of audit, nomination, and remuneration committees
• Disclosure Policy: Requirements for financial reporting, material information, and market notifications
• Risk Management: Internal control systems and compliance monitoring procedures
• Conflict Resolution: Procedures for handling disputes and conflicts of interest
• Sharia Compliance: Statement on adherence to Islamic principles in corporate activities
• Amendment Process: Procedures for updating governance policies and obtaining approvals

A Corporate Governance Document differs significantly from a Corporate Charter in several key aspects, though both are foundational company documents. While the Charter establishes a company's basic existence and structure under Saudi law, the Governance Document provides detailed operational guidelines and control mechanisms.

• Scope and Purpose: Corporate Charters focus on fundamental company details like name, capital, and objectives, while Governance Documents outline how the company will be run day-to-day
• Legal Requirements: A Charter must be filed with the Ministry of Commerce to incorporate; a Governance Document is required by CMA for listed companies but recommended for all
• Modification Process: Charter changes need formal ministry approval and shareholder votes; Governance Documents can be updated through internal board procedures
• Content Focus: Charters state what the company is; Governance Documents explain how it operates, including board procedures, shareholder rights, and compliance frameworks