Muscat – These regulations are aimed at enhancing internal operations and ensuring better management practices within these entities. Effective as of January 13, 2025, the regulations are designed to establish clear standards for disclosure, transparency, and institutional discipline in the governance of closed joint-stock companies.

They target closed joint-stock companies and their board members, emphasizing the importance of ethical management and accountability within these businesses. The new framework requires companies to adhere to high standards of governance and mandates that they update their bylaws in line with the new guidelines.

Key features:
• Regulates disclosure and transparency standards
• Ensures Institutional discipline in the company’s management
• Mandates the company’s commitment to amending bylaws
Topics covered under the regulation:
• Definitions and General Provisions
• Formation of the Board of Directors and its Responsibilities
• Powers and Authorities of the Board of Directors
• Accountability of Board Members
• Professional Conduct Principles and work ethics for board members
• Executive Management
• Equality in Dealing with other shareholders
• Regulation of transactions with Related Parties
• Corporate Social Responsibility

The Ministry’s move is a significant step in strengthening corporate governance practices in Oman, fostering a more structured and accountable business environment, and aligning with international best practices.