The Ministry of Economy and Commerce (MEC) has issued instructions pertaining to eligibility of members on the board of directors, bonuses and rewards, and rules governing the conduct of shareholders’ general assembly, in an effort aimed at streamlining the functioning of private shareholding companies.
According to reports, these instructions will be applicable to private shareholding companies that do not fall under the control of Qatar Financial Markets Authority or the Qatar Central Bank.
The instructions stipulate that a board member should not be less than 21 years of age, and should not have criminal record, particularly crimes stated in Articles 334 and 335 of the Commercial Companies Law.
He should also be a shareholder and an owner of a number of shares, although an independent member is exempted from this regulation.
The shares should be deposited at any of the accredited banks within 60 days of the commencement of the membership.
The MEC directive for independent members states that they must be totally independent and have adequate experience, as reported by Gulf Times.
The board of directors would hold at least six board meetings within a financial year of the company concerned, unless the establishment rules stipulate more such meetings.
Besides, a meeting should be held every three months, while the chairman or the board members should not engage in any business that competes with that of the company.
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Credit:Qatar Day
URL:http://www.qatarday.com/news/local/mec-issues-instructions-on-private-shareholding-firms/45775
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