6.4 Capital Markets Authority Corporate Governance Reporting Requirements

Capital Markets Authority (CMA) corporate governance reporting requirements refer to the guidelines and regulations set by the CMA or similar regulatory bodies to promote transparency, accountability, and good corporate governance practices among companies operating in capital markets. These requirements typically outline the disclosure and reporting obligations that companies need to fulfill regarding their corporate governance practices. Here are some key points about CMA corporate governance reporting requirements:

1. Disclosure of Corporate Governance Practices:
   • Companies are required to disclose information related to their corporate governance practices in their annual reports or other specified reporting formats.
   • This includes information about board structure, composition, independence, committees, executive compensation, risk management, internal controls, and related party transactions.
2. Board Composition and Independence:
   • Companies are typically required to disclose the composition of their board of directors, including the names, qualifications, and experience of directors.
   • The requirements may also focus on ensuring an appropriate balance of independent directors on the board to enhance accountability and objectivity.
3. Board Committees:
   • Companies may be required to disclose information about the existence and composition of board committees, such as audit committees, remuneration committees, and nomination committees.
   • The responsibilities, terms of reference, and activities of these committees may need to be disclosed as well.
4. Executive Compensation:
   • Companies are often obligated to disclose information about the structure, components, and amount of executive compensation, including salaries, bonuses, stock options, and other benefits.
   • The rationale behind the compensation packages and the linkage between performance and remuneration may also need to be disclosed.
5. Risk Management and Internal Controls:
   • Companies may be required to disclose information about their risk management framework, including the identification, assessment, and mitigation of significant risks.
   • Disclosure of the effectiveness of internal controls over financial reporting and the measures in place to ensure compliance with applicable laws and regulations may also be required.
6. Related Party Transactions:
   • Companies are typically required to disclose details of any significant related party transactions that may affect their financial position, performance, or governance.
   • This includes transactions with directors, key management personnel, and entities connected to them.
7. Compliance and Reporting Obligations:
   • Companies are expected to comply with the reporting requirements outlined by the CMA or relevant regulatory bodies and provide accurate and timely disclosures.
   • Non-compliance or inadequate disclosure may lead to penalties, fines, or other regulatory actions.