SCA pproves amendments

Published February 7th, 2011 - 10:31 GMT

 The board of directors of the Emirates Securities and Commodities Authority (SCA) has held a meeting, presided over by its chairman,  Engineer Sultan bin Saeed Al-Mansoori, Minister of Economy, during which the board approved amendments on a number of regulations, including the Trading, Clearance and Settlement Regulation, Securities Ownership Transfer Regulation, Securities Custody Regulation, Brokers Regulation and Market Functioning Regulation.

The meeting, which underscored the need for all listed public joint stock companies (PJSCs) to adhere strictly to the corporate governance and institutional discipline standards and support for investor awareness programs, was the fourth by the new board and was attended by all board members, including Mohammed bin Ali bin Zayed Al-Falasi, Deputy Board Chairman,  Abdullah Salim Al-Turifi, SCA Chief Executive Officer,  Mubarak Rashid Al-Mansoori,  Mohammed Ali Ahmed Al-Dhahiri,  Abdullah bin Ali Al-Hamli and  Butti bin Khalifa Al-Falasi, as well as Ibrahim Al-Za'abi, SCA's Deputy CEO for Licensing, Supervision and Enforcement, who is the board's rapporteur and  Maryam Al-Suwaidi, SCA's Deputy CEO for Legal Affairs, Issuance and Research, who is the board's coordinator.

The board discussed a number of issues related to the securities sector and endorsed an amendment on the mechanism for distribution of profit through bank accounts.

By the new amendment, distribution of profit through bank account of shareholders which hitherto used to be compulsory through bank account shall now be optional for shareholders. In this regard, the board approved an amendment on Article (2/23) of 2001 concerning Trading, Clearance, Settlement Transfer of Ownership and Securities Custody Regulation, which shall now read as follows: 

"The holder of the right in the subdivision of the nominal value of the share or dividends, whether in cash or bonus shares, shall be the owner of the share registered on the tenth day commencing on the day following the date of convening the General Assembly in which it was resolved to distribute such dividends or to effect the subdivision. The company shall deposit the cash dividends in the bank account of the shareholder, or shall post by registered mail a bank cheque of the amount of the dividend to the beneficiary's address as recorded in the market register. This shall be done within a period not exceeding thirty days from the date of the General Assembly’s resolution to distribute such dividends. The company may deposit the dividend into the market's bank account within the aforementioned period according to the mechanism directed by the market and in coordination with the SCA. The market shall, in turn, deposit the cash dividend into the account of the beneficiary shareholder within a period not exceeding thirty days from the date of the General Assembly’s resolution to distribute such dividends.


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