Information Exchange & Rule of Law
15-Dec-2010
Key points of the MOU signed between Jordan Securities Commission (JSC) & the Company Control Department (CCD):
On Tuesday, an MOU was signed at the headquarters of Jordan Securities Commission (JSC). The MOU was signed between (JSC) & the Company Control Department (CCD). The aim of the MOU is to organize cooperation among (JSC) & the (CCD) in issues related to regulation & supervision. The MOU was signed by (JSC) Chairman Dr Bassam Saket & the General Controller of the (CCD) Dr Bassam Al-Talhony.
This MOU is a reflection of practical cooperation between (JSC) & (CCD) within the supervisory framework on parties under the supervision of both entities; the (JSC) & (CCD). It is also a reflection to have efficient supervision & surveillance on these parties, in a manner that achieves the adherence of companies with relevant legislations, regulations & instructions, enhances the protection of shareholders & investors, disclosure & transparency in the national capital & the investment climate in general.
Dr. Bassam Saket stated: “when companies expanded, numbers & capitals increased & money collected from major & minor savers whether local or foreigners, the distance between money owner & money management expanded. And to have fairness in the market, the need emerged to have supervisory, protective & developed entities to pursue issues among money owners & managements. Developed countries greatly benefited from legislations aimed to provide independence & immunity for supervisory entities monitoring & protectionism responsibilities. Supervisory entities therefore, set a good governance code for institutions indicating all rights of all shareholders & the management where they foreigners or local owners. The trend is to pursue the performance of companies continuously. When work sphere expanded, legislations became diversified & required institutions to properly coordinate & document issues to achieve noble goals of protectionism & supervision to have stability & trust in national companies & institutions”.
Saket added, “Since (JSC) is authorized to supervise on companies listed at Amman Stock Exchange (ASE), it has adopted practical cooperation & consultation with national institutions & to enhance transparency it signed this MOU with the (CCD) to indicate its responsibilities by virtue of effective laws. Key points included in the MOU aimed to emphasize the principle of the rule of law & information exchange to enhance trust in our national companies”.
General Controller of the (CCD) Dr Bassam Al-Talhony stated “the aim of the MOU is to enhance cooperation between the (CCD) & the (JSC), to coordinate between parties in setting regulatory legislations for companies subject to both parties supervision, to exchange necessary information concerning both parties supervisory & regularity responsibilities & duties in accordance with the effective provisions of legislations & to take part in training courses concerning issues of mutual interest such as companies corporate governance, meetings & conferences”.
Key points of the MOU include the following: coordinating preparation of legislations, standards, supervisory requirements of entities subject to the supervision & monitoring of the two parties & of duties affecting mutual supervision & regulation. Exchanging effective legislations, standards, supervisory requirements & circulations issued by the two parties that are relevant to mutual fields supervised by them & any new substantial developments. Regular hold of meetings between the two parties as public interest deems, to discuss issues of mutual interest & methods to develop supervision of areas subject to their supervision. Cooperating, coordinating & exchanging information in accordance with the applied provisions of legislations for the two parties to organize issues of mutual interest within their supervisory responsibilities including registering & licensing companies subject to their supervision, how to settle capital & changes affecting it, transferring the company legal capacity, merger & any relevant in kind payments of companies subject to their supervision, implement companies Corporate Governance Code subject to their supervision, liquidate & merger of companies subject to their supervision.
The MOU signing was attended by members of (JSC) Board of Commissioners, capital market institutions executive managers & a number of directors from the (CCD) & the (JSC).