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  • HC-2.4 HC-2.4 Disclosure of Conflicts of Interest

    • HC-2.4.1

      Each approved person must inform the entire Board of (potential) conflicts of interest in their activities with, and commitments to other organisations as they arise. Board members must abstain from voting on the matter in accordance with the relevant provisions of the Company Law. This disclosure must include all material facts in the case of a contract or transaction involving the approved person. The approved persons must understand that any approval of a conflicted transaction is effective only if all material facts are known to the authorising persons and the conflicted person did not participate in the decision. In any case, all approved persons must declare in writing all of their other interests in other enterprises or activities (whether as a shareholder of above 5% of the voting capital of a company, a manager, or other form of significant participation) to the Board (or the Nominations or Audit Committees) on an annual basis.

      Amended: January 2013
      Amended: January 2011
      October 2010

    • HC-2.4.1A

      The chief executive/general manager of the Bahraini Islamic bank licensees must disclose to the board of directors on an annual basis those individuals who are occupying controlled functions and who are relatives of any approved persons within the Bahraini Islamic bank licensee.

      Amended: July 2016
      Added: April 2016

    • HC-2.4.1B

      The chief executive/general manager of the branch of foreign bank licensee must disclose to a designated officer at its head office or regional manager on an annual basis those individuals who are occupying controlled functions and who are relatives of any approved persons within the branch of foreign bank licensee.

      Amended: April 2019
      Added: July 2016

    • HC-2.4.2

      The Board of a Bahraini Islamic bank licensee should establish formal procedures for:

      (a) Periodic disclosure and updating of information by each approved person on his actual and potential conflicts of interest; and
      (b) Advance approval by directors or shareholders who do not have an interest in the transactions in which an Islamic bank licensee's approved person has a personal interest. The Board should require such advance approval in every case.
      Amended: July 2016
      October 2010