Corporate Governance Regulations Quiz

Market board members cannot be on the board of a publicly traded company or a financial broker.

If convicted of certain offenses, market board members must resign.

The market's board of directors is elected according to the Commercial Companies Law and its internal rules.

Market leaders must declare their own, their spouse's, and their minor children's securities holdings.

The market's board of directors is responsible for appointing the general manager and deputy.

The market's board sets the organizational structure, internal rules, and administrative guidelines.

Market income comes from listing fees, trading fees, and fines.

A document that officially establishes the market and its legal basis.

A statement listing the names of individuals responsible for managing the market.

A declaration stating that a board member is not involved in any financial conflicts of interest.

A detailed disclosure of securities owned by a board member, their spouse, and minor children.

A commitment to inform the regulatory authority about any changes to a board member's personal financial holdings.

A statement containing the names of the highest-ranking officials in charge of the market.

A declaration outlining the financial holdings of market's director general and deputy, including their spouse and minor children.

A commitment to inform the regulatory authority about any changes in the financial holdings of market's director general and deputy.

A detailed description of the hierarchical structure of the market, including its specific departments and their functions.

Detailed regulations governing the internal operations of a financial market.

The process of applying for a license to operate a financial market.

The governing board responsible for making decisions regarding the operation of a financial market.

Specific criteria for evaluating a market license application based on completeness and compliance.

A timeframe imposed on the SCA to review and decide on a market license application.

The process by which the SCA allows applicants to re-submit their market license applications after addressing the reasons for rejection.

The right of the SCA to inspect and investigate financial markets and brokers to ensure compliance with regulations.

The specific procedures the SCA uses to conduct investigations into potential regulatory violations by markets or brokers.

The right of the SCA inspection team to access market and broker offices, documents, and information during working hours.

The SCA's capability to request specific documents and information from individuals involved in an investigation.

A company's ability to meet its financial obligations, including paying commercial debts and bank loans, without resorting to bankruptcy proceedings.

An assessment of a company's legal and regulatory compliance, including adherence to internal regulations, risk management systems, and separation of activities.

Evaluates the qualifications and experience of individuals involved in a company's operations, ensuring they have the necessary knowledge and expertise to perform their duties.

The ability to perform licensed activities effectively, ensuring compliance with relevant legislation, and prioritizing customer satisfaction through quality services.

The availability of a credit rating or assessment that reflects the company's creditworthiness and financial health.

A related party is defined as a chairman, board member, senior executive, employee, or someone who holds 30% or more of a company's capital. This also includes subsidiaries, sister companies, and affiliates.

Transactions between a company and related parties are scrutinized to avoid conflicts of interest and unfair advantages.

A company must obtain board approval for transactions with related parties if the value is less than 5% of the company's capital. For transactions exceeding 5%, general assembly approval is required.

Larger transactions exceeding 5% of the company's issued capital must be evaluated by an assessor accredited by the SCA.

The related party with an interest in a transaction cannot participate in voting on the terms of the decision taken by the board or general assembly.

If any significant changes occur to the approved terms of a related party transaction, further approval from the board or general assembly is required.

For transactions exceeding 5% of the issued capital, they must be evaluated again by an accredited SCA assessor before completion.

Related parties and board members involved in non-compliant or unfair transactions can be held liable for damages to the company.

Regular business transactions that do not offer preferential conditions to board members are not considered transactions with related parties.

Transactions within a company's regular business operations are exempt from related party transaction regulations if they are done at fair market prices and don't benefit any board members.