- RIYADH: The Ministry of Commerce and Industry has directed joint stock companies in the Kingdom to follow a voting system where shareholders are allocated votes according to the size of their stake when choosing members of their board of directors.
- In a circular issued to all joint stock companies, the ministry asked them to make necessary amendments to their statutes.
The ministry noted that this is the well-known practice prevailing in a number of advanced countries. This pattern is a more balanced one, in addition to ensuring fairness when giving voting rights, especially for small shareholders. This would also bring about a qualitative improvement in the pattern of choosing board members.
The ministry thanked companies that have already implemented the pattern. They included Almarai, Mobily, Jarir Marketing Co., Al-Sahraa, Saudi Arabian Mining Co. (Maaden), Petro Rabigh, Arabian Pipes Co., Bank Albilad, Taiba Co., Asmak, Gulf Training, SAICO, Tabuk Agricultural Co., Nama Petrochemical Industrial Co., Al-Jouf Cement Co., and Salama Co.
