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Article One

In the application of the provisions of this Resolution, a legal person means any company or institution whose financial transactions come under the control of the Bahrain Stock Exchange, regardless of whether they are a public or private company or institution.

Article Two

Any individual or legal entity shall inform the Exchange immediately in writing when his ownership, or his ownership in addition to his minor sons' ownership, or accounts under his control, reaches 5% or more of the issued and paid-up capital of a listed joint stock company.

Article Three

Any individual or legal entity shall inform the Exchange immediately if his ownership, or his ownership in addition to his minor sons' ownership, or any accounts which come under his control, or the ownership of any of his associates or subsidiaries, reaches 10% or more of any listed securities of a joint stock company. The Exchange shall have the right to publish the name of the person who owns the said percentage.

Any person or persons referred to in the preceding paragraph, who wish to execute a transaction for himself, or for accounts under his control in a number of securities representing 1% or more of the said issue, shall inform the Exchange in writing, prior to the conclusion of the transaction's contract. Non-compliance with this procedure shall result in the cancellation of the transaction.

Article Four

Any individual or legal entity whose ownership of any listed securities reaches 10% or more and wishes to purchase or own 20% of a company's shares, shall inform the Director of the Exchange in writing, prior to the submission of his purchase order on the Trading Floor. The Exchange's Board of Directors shall have the right to reject the transaction, if such a transaction, in the Board's opinion, is not in the interest of the national economy.

In the case of purchasing shares of a financial institution which comes under the control of the Bahrain Monetary Agency, the Bahrain Monetary Agency's approval shall be obtained before purchasing or owning 20% or more of the said financial institution's shares.

Article Five

Listed companies and brokerage offices established under Resolution No. (2) of 1995 pertaining to the services offered by brokerage firms on the Bahrain Stock Exchange, and registration and transfer offices, shall be responsible for immediately submitting to the Exchange, a written report of each trading transaction amounting to 5% or more of any listed security owned by any individual or legal entity, and provide the Exchange with such statements and documents for the purpose of ascertaining the correctness of the statements provided for in the reports.

Article Six

Brokerage companies established under Resolution No. (2) of 1995 referred to in the above Article, shall prepare weekly reports including statements regarding the nationalities of clients for whom they deal with their accounts and Mutual Funds portfolios managed by them, and shall also inform the transfer offices therewith.

The transfer offices shall inform the Exchange weekly of the nationalities whose ownership approaches the limits authorized by the Commercial Companies Law and its Amendments, and the Articles of Association of the said companies.