MUSCAT: The FSA said the requirements will take effect in two circumstances: when the term of a company’s existing Board of Directors expires and its first new board is formed, and when vacancies arise on the boards of existing firms and new members are elected or appointed to fill those positions.
The authority said the approach is intended to move beyond formal compliance with the nomination requirements and promote effective board performance and sound corporate governance, particularly through genuine adherence to independence requirements.
The measures are also aimed at strengthening corporate discipline and ensuring the full protection of the rights of investors and other stakeholders.
The FSA stressed that the Board Nomination Form will not affect existing boards and will not require public joint-stock firms to take any action concerning their current boards.
Instead, the form is intended to help companies identify and select qualified board members who meet the prescribed requirements when new boards are formed or vacancies are filled.