Page 19 - Corporate Governance Eng.

Eighth Rule

Observing Shareholders’ Rights

• Protection of the general rights of shareholders to ensure justice and equality among all shareholders
The implementation of the governance rules achieves balance between the Company’s objectives and the objectives
of its shareholders, protects the rights of shareholders and establishes justice and equality among them. The Company
treats all shareholders equally without any discrimination. Under no condition the Company conceals any information
or any of the shareholders’ rights. In this respect, the Company complies with all the provisions of the law and executive
regulation, as well as the instructions and regulatory conditions. Further, the Company’s articles of association and the
corporate governance framework approved by the board of directors, its internal regulations, procedures and controls
required to ensure that all the shareholders exercise their rights to achieve justice and equality, in a manner which does
not contradict with the applicable laws and regulations, decrees and instructions issued in this respect. Among the gen-
eral rights of shareholders guaranteed by the Company are the following:
- Register the value of the shareholders’ equity in the Company’s records.
- The shareholders’ right to transact with the shares including the registration of ownership, its transfer and/or assignment.
- The right of shareholders to obtain the determined share in the profits distributions.
- The right of shareholders to obtain a share of the Company assets in the event of liquidation.
- The right of shareholders to obtain the data and information concerned with the Company activity, operational and
investment strategy in a regular and convenient manner.
- The right of shareholders to access the shareholders’ register.
- The right of shareholders to participate in the meetings of the general assembly of shareholders and voting on its decrees.
- The right of shareholders to elect members of the board of directors.
- The right of shareholders to control the Company’s performance generally and the board of directors’ operations in
particular.
- The right of shareholders to call into account members of the Company board of directors or executive management,
in the event they fail to perform the tasks entrusted to them.
• Taking into consideration precision and continuous follow up of the shareholders’ data
- For the purpose of continuous follow up of all matters related to the shareholders’ details, the Company keeps a register
kept with the clearing agency, in which the names of shareholders, their nationalities, domicile and the number of shares
owned by each one of them are recorded. The shareholders’ register is marked with any changes on the details recorded
therein according to the details received by the Company or clearing agency. Every concerned party may request the
Company or clearing agency to furnish it with details from this register.
- The details set forth in the Company shareholders’ register are dealt with the maximum degrees of protection and
confidentiality, in a manner which does not contradict with the law and executive regulation and the instructions and
regulatory controls issued by the Authority.

• Encourage shareholders to participate and vote in the Company general assembly meetings.
The Company regulates a mechanism of participation in the shareholders general assembly meetings, whereby it takes
the following into consideration upon organizing the general meetings of shareholders:
- Address the invitation to shareholders to attend the general assembly meeting, comprising the agenda, time, and venue
of organizing the meeting, through announcement according to the mechanism outlined in the executive regulation of
the Companies Law.
- The Company illustrates and indicates to shareholders that the shareholder is entitled to authorize another person to at-
tend the general assembly meeting according to a particular power of attorney or authorization prepared by the clearing
agency for this purpose.
- The Company permits shareholders before convening the general assembly meeting by a sufficient time to obtain all the
information and details relevant to the agenda items to enable shareholders to take their decisions properly.