Other Relationships
AA-1.5.3
Insurance licensees and theirauditors must comply with the restrictions contained in Article 217(c) of the Commercial Companies Law (Legislative Decree No. (21) of 2001), as well as in Article 61(d) of the CBB Law.Amended: January 2007AA-1.5.4
Article 217(c) prohibits an
auditor from (i) being the chairman or a member of the Board ofDirectors 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, theauditor must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.Amended: January 2007
Amended: October 2007AA-1.5.5
Article 61(d) prohibits an
auditor from (i) being the chairman or a member of the Board ofDirectors 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, theauditor must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.Adopted: January 2007AA-1.5.6
The restriction in Paragraph AA-1.5.3 applies to
overseas insurance licensees as well asBahraini insurance licensees .Amended: January 2007AA-1.5.7
A partner, Director or manager on the engagement team of auditing an
insurance 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 CBB.Amended: January 2007AA-1.5.8
Chapter AU-1.2 sets out the CBB's '
controlled functions ' requirements.Amended: January 2007
