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Amendments to two pieces of regulation are up for feedback and public consultation, with the Capital Market Authority looking to amend the criteria for debt instrument issuances, while the Commerce Ministry is seeking feedback on changes to the Companies Law’s actual beneficiary rules.
Proposed tweaks to the criteria for issuing debt instruments will be up for public consultation on Istitlaa until Thursday, 8 August, the Capital Market Authority said in a statement. The draft amendments aim to ease issuance requirements by expediting the process and reducing its associated costs.
In a nutshell: The amendments include broadening the range of issuers who are exempt from meeting some of the more burdensome conditions to include developmental funds, banks and sovereign funds. Under the proposed changes, private offerings would benefit from a reduced notification period, allowing for faster access to the market. Meanwhile, listed companies would have a streamlined disclosure mechanism also aimed at facilitating their offerings.
ALSO ON ISTITLAA-
The Commerce Ministry is currently accepting feedback on a draft amendment to the actual beneficiary rules (pdf) under the Companies Law. The rules, which aim to align the local standards for actual beneficiaries with international requirements, will be available on the public consultation platform until Thursday, 8 August.
So… what’s an actual beneficiary? A person who owns a share in the company’s capital or exercises actual control over the company by any other means, either directly or indirectly, qualifies as an actual beneficiary. This means owning at least 25% of the company’s capital, controlling at least 25% of the total voting rights associated with the shares or stakes, having the ability to influence the company’s actions or decisions, or being a director or board member of the company. If none of these conditions are met, then the company’s director or board member is considered the company’s actual beneficiary.
The draft also specifies exclusions from the application of the rules, including joint-stock companies listed on Tadawul, companies owned by legal entities under the supervision and control of the Capital Market Authority, companies or shares owned by the state or its legal bodies, and companies undergoing liquidation procedures under bankruptcy law.
