HC-B.2 HC-B.2 Branches and Subsidiaries
HC-B.2.1
Bahraini
listed companies andCMSPs must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their branches, whether located inside or outside the Kingdom of Bahrain, such that these are also subject to effective corporate governance. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.July 2011HC-B.2.2
Bahraini
listed companies andCMSPs must satisfy the CBB that activities conducted in subsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.July 2011HC-B.2.3
Where a listed companies or
CMSP is unable to satisfy the CBB that itssubsidiaries and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — arising from inadequate corporate governance in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between thelisted company ,CMSP and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of thelisted company orCMSP , then its authorisation may be called into question.July 2011