The Capital Market Authority emphasizes the shareholders need to fully exercise their rights in general assemblies of listed companies in the market. Exercising these rights, as part of the Corporate Governance Regulations, leads to the main goal of those assemblies to connect and link shareholders with Boards of directors of listed companies.
CMA Explained that the shareholder has an important role in general assemblies by participating in and voting on the decisions taken. This participation would be more affective by attending the assembly and by preparing for the participation beforehand. The shareholder’s vote in the general assemblies of listed companies is a fundamental right that cannot be denied and the listed company should avoid placing any actions that might lead to obstructing this right. It should facilitate the shareholder’s right to vote according to the Corporate Governance regulations.
In the same context, CMA has pointed out to shareholders some common mistakes in general assemblies that might reduce their chances to benefit from their legal rights provided by the Capital Market Law and its implementing regulations. These mistakes could lead to unwanted results or decisions. Some examples of the mistakes are mentioned in the awareness booklet titled “A Guide for the Shareholder in General Assemblies of Listed Companies in the Saudi Capital Market” such as: late invitations to attend the assembly, lack of information on the items discussed in the assembly’s meeting and poor choice of time and venue to hold the assembly meeting so shareholders can attend .
As part of CMA’s efforts to spread awareness in the community, it has issued 16 awareness booklets with a variety of content related to investments and capital markets, financial terms, financial statements and corporate governance in listed companies.
