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Corporate Governance & Qualification for Listing Output #10

Governance Outputs · #10

Regulatory Governance & Committee Charters

Drafting and developing charters governing the Board of Directors and its committees to ensure effective oversight and full compliance with the Capital Market Authority (CMA) rules.

Regulatory governance frameworks and board committee charters constitute the administrative constitution for any company seeking institutional maturity, long-term stability, or qualification for listing on the financial market (Tadawul Tasi or Nomu). At Next Dimension, we formulate comprehensive regulations that align responsibilities and control relationships between the Board of Directors, executive management, and oversight committees in accordance with CMA directives.

Interactive Governance Regulations Directory

Select a regulation to view its objectives, key clauses, approval authority, and impact on IPO readiness:

⚖️
Internal Governance Regulations
🔎
Audit Committee Charter
👥
NRC Committee Charter
💼
Board of Directors Charter

Internal Corporate Governance Regulations

Defines the company's general governance framework, shareholder rights, General Assembly rules, Board responsibilities, and disclosure/transparency policies.

1
Regulating relationships with shareholders and General Assemblies.
2
Board structure, composition, and independence criteria.
3
Information disclosure and transparency policies, and insider trading rules.
4
Internal control systems, conflict of interest mitigation, and transparency.
Approval Authority

Recommended by the Board and approved by the General Assembly.

Importance to Listing File (IPO)

A mandatory requirement for CMA filing, serving as the primary legal and regulatory reference to protect all stakeholders.

Regulatory Obligations & Required Committees for Listing

Corporate Governance Regulations issued by the Capital Market Authority dictate the formation of specialized board-level committees to ensure independent decisions and separation of duties:

1. Audit Committee

A mandatory committee composed of non-executive directors including at least one financial specialist. It monitors financial statements, evaluates internal control systems, and reviews external audit and regulatory compliance.

2. Nominations & Remuneration Committee (NRC)

Monitors Board nominations, reviews skill requirements, drafts remuneration policies for directors and executive officers, and evaluates board performance to ensure alignment and continuity.

3. Risk / Investment Committee (Optional / Recommended)

Assists the Board in overseeing risk tolerance, assessing strategic investment options, and managing enterprise risk matrices affecting long-term corporate growth and fiscal stability.

4. Director Independence Mandate

Regulations mandate that a specific ratio of Board and committee positions be held by independent directors to ensure unbiased, professional decision-making that protects minority shareholder rights.

Our Methodology in Drafting Governance Charters

We avoid standard, boilerplate templates. Instead, Next Dimension drafts customized corporate charters that fit your operations and corporate culture perfectly:

1

Needs Assessment

Analyzing the company's current ownership structure, business sectors, and regulatory environment to determine the size and structure of board committees and required charters.

2

Drafting Charters

Authoring the internal governance code, board charter, and committee charters (Audit, NRC) in precise legal and technical language aligning with CMA governance rules.

3

Review & Board Pre-approval

Presenting the drafted charters to the Board of Directors and legal advisors for comments, refining the contents, and securing board endorsement ahead of submission.

4

General Assembly Approval & Implementation

Presenting policies and codes to the General Assembly of shareholders for final ratification, and training board secretaries on legally compliant minutes and operations.

Looking to establish robust governance charters for your listing?

At Next Dimension, we draft and update corporate regulations and charters to shield shareholder rights and satisfy all compliance standards.