These instructions will be applicable to private shareholding companies that do not fall under the control of Qatar Financial Markets Authority or the Qatar Central Bank.
According to the instructions, a board member should not be less than 21 years of age, and should not have criminal record, particularly crimes stated in Articles 334 and 335 of the Commercial Companies Law.
He should also be a shareholder and an owner of a number of shares as per the company's establishment rules. However, an independent member is exempted from this regulation.
Such shares should be deposited at any of the accredited banks within 60 days of the commencement of the membership.
The "deposit" will remain and cannot be transferred, mortgaged, or seized throughout the duration of the membership.
The remuneration of a director should not exceed 5% of the company's profit.
As for independent members, the MEC directive states that they must be totally independent and have adequate experience.
The board of directors is obligated to hold at least six board meetings within a financial year of the company concerned, unless the establishment rules stipulate more such meetings. A meeting should be held every three months.
The chairman or the board members should not engage in any business that competes with that of the company.
The MEC directive bans the company from giving financial loans of any type to any of its board members. However, banks may give loans or similar financial services to the board members.
Members who have been removed from the board cannot be re-elected before the passage of five years from the time the decision was taken to remove them.
The MEC has also laid down the procedures for convening a general assembly meeting, nomination to the board and the authority to represent someone else, by proxy.
More details on these regulations are available on the MEC website.
