Following steps to protect the rights of shareholders and dealers, the Ministry of Commerce and Industry has called for transparency in the transactions of companies. The ministry stressed in a statement issued on Tuesday the need to implement fair practices to ensure compliance with the criteria and provisions governing transparency and disclosure regarding company transactions in line with the basic principles of governance in the Kingdom.

The statement added that the move will sustain and develop the economic entities, indicating the ministry’s commitment and ongoing follow up aimed at protecting the shareholders and saving the dealers rights. It added that the initiative is part of its supervisory and surveillance duty to the companies operating in the Kingdom.

The ministry pointed out that it will ensure transparency of the financial position of the companies through their financial statements, performance, and the distribution of property. The criteria also includes an effective framework for the work of the company management, improve the performance of institutions and ensure the integrity of transactions, as well as help the partner or shareholder exercise his rights and guarantee fair treatment to all parties concerned.

Besides, the ministry gives particular importance to the safety and efficiency of the companies’ Board of Directors, and their role in shaping their strategies.