Other Relationships
AA-1.5.3
Specialised licensees and their auditor 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.October 2010AA-1.5.4
Article 217(c) of the Commercial Companies Law prohibits an auditor from (i) being the chairman or a member of the Board of
Directors of thelicensee he/she audits; (ii) holding any managerial position in thelicensee he/she audits; and (iii) acquiring any shares in thelicensee 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 licensee.Amended: October 2012
October 2010AA-1.5.5
Article 61(d) of the CBB Law prohibits an auditor from (i) being the chairman or a member of the Board of
Directors of the licensee he/she audits; (ii) acting as a managing director, agent or representative of the licensee concerned; and (iii) taking up any administrative work in the licensee, or supervising its accounts, or having a next of kin in such a position.Amended: October 2012
October 2010AA-1.5.6
The restriction in Paragraph AA-1.5.4 applies to
overseas specialised licensees as well asBahraini specialised licensees .October 2010AA-1.5.7
A partner,
Director or manager on the engagement team of auditing aspecialised licensee may not serve on the Board or in acontrolled function of thelicensee , for two years following the end of their involvement in the audit, without prior authorisation of the CBB.October 2010AA-1.5.8
Chapter AU-1.2 sets out the CBB's "
controlled functions " requirements.October 2010
