Capital Market Authority permitted the public companies’ and investment funds’ boards to apply the new definition of the independent director in order to prepare companies and qualify their boards for reviewing their internal systems according to the bases adapting standards that  provide more independency to directors as specified in Circular number (14/2012). This direction comes in the middle of the preparation for a comprehensive study related to reviewing the Code of Public Companies in order to enhance the provisions and standards and convoy with the accelerated developments on the international economic level.

CMA has earlier issued a decision forming a committee for developing corporate governance. The Committee is represented by members from public companies, government companies and family companies besides representatives from legal supervisory offices, so that the committee includes various concerned parties to exchange views and establish a common wording related to the specifications of rational board that fits the legal form of corporations. 

Ahmed Al Qasabi, Director of Compliance and Disclosure clarified that CMA is keen to apply best levels of rational management and in proportion to available potentials of getting benefit from international schools in providing sound investment environment for investors and traders. He pointed to the most significant issues regulated by corporate governance rules which are; establishment of public companies’ boards, mechanism of choosing members, and distributing duties and related-parties transactions. An effective board would direct the company’s decisions to the right track which would promote investors’ trust and increase local capital market’s efficiency that would achieve its objectives in serving the national economy.

Al Qasabi confirmed the significance of corporate governance in directing the company for further productivity and growth.  He pointed to the corporate governance rules regulate the relationship between related parties and protects the interests of all parties. He added that CMA was obliged to convoy with the economic local and international events and developments and to work continuously on assessing the regulatory framework for enhancing the principles of corporate governance. He also pointed to the lately formed committee for developing corporate governance that is working now on reviewing regulations of the Code of Corporate Governance that would include applying amendments, considering challenges faced the companies while implementing regulations of directing companies for good corporate governance that serves mutual interest of all related parties.

It is worth to mention that CMA depends on a progressive and systematic policy in implementing principles of corporate governance and managing public companies since the issuance of the first Code of Public Companies in 2002, followed by the establishment of an independent department for corporate governance in 2006, and the Corporate Governance Committee formed in 2008, and then after two years the establishment of the Oman Center for Corporate Governance.