SCA clarifies disclosure law

The Emirates Securities & Commodities Authority (SCA) yesterday corrected a report that had been published in a daily newspaper. The report was concerning SCA chairman's resolution No(26/C) of 2009 regarding cancellation of item 12 of Article No36 of the Disclosure & Transparency Regulation. The report claimed that "relieving companies from early reporting items influentially affect share trading." "In this respect, SCA would like to clarify that the resolution cancelling item No12 of Article No36 of the Disclosure & Transparency Regulation is mainly related to relieving companies from providing SCA with copies of board of directors' minutes of meetings," the exchange said in a statement. Where the item No11 of the said Article is procedurally satisfied enough, since it necessitates notifying SCA and the respective market with the time-table of holding companies board of directors' meetings in which such influential decisions on share value as well as its movement in the market will be discussed. Accordingly, the notification should be forwarded to both SCA and the respective market two working days earlier than the subject-meeting. Moreover, it is mandatory to provide both SCA and the respective market with decisions taken and subsequently approved by board of directors in this meeting. "It is worth mentioning that SCA would like to attract attention of all parties concerned to verify accuracy, in advance, before reporting such news to avoid any potential misunderstanding," it said. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .