Other Relationships
AU-1.5.3
Conventional bank licensees and their auditors must comply with the restrictions contained in Article 217(c) of the Commercial Companies Law (Legislative Decree No. (21) of 2001).AU-1.5.4
Article 217(c) prohibits an auditor from (i) being the chairman or a member of the Board of Directors of the company he/she audits; (ii) holding any managerial position in the company he/she audits; and (iii) acquiring any shares in the company he/she audits, or selling any such shares he/she may already own, during the period of his audit. Furthermore, the auditor must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.
AU-1.5.5
The restriction in Paragraph AU-1.5.3 applies to
overseas conventional bank licensees as well asBahraini conventional bank licensees .AU-1.5.6
A partner, Director or manager on the engagement team of auditing a
conventional bank licensee may not serve on the Board or in acontrolled function of the licensee, for two years following the end of their involvement in the audit, without prior authorisation of the BMA.AU-1.5.7
Chapter HC-2 sets out the BMA's "
controlled functions " requirements.
