Capital Market Authority Issues Corporate Governance Instructions for Listed Companies to Enhance Trust and Achieve Economic Sustainability

SadaNews - The Board of Directors of the Capital Market Authority issued the Corporate Governance Instructions for listed companies on the Palestine Stock Exchange No. (1) for the year 2025, in a strategic move aimed at updating the legal frameworks governing the non-banking financial sector, in line with the best international standards and practices, and enhancing a safe and transparent investment climate in Palestine.

The Chairman of the Authority, Mr. Ammar Al-Aker, confirmed that the issuance of these instructions comes in harmony with the new Companies Law and the rapid developments witnessed in corporate governance principles over recent years, explaining that these instructions will apply to all public joint-stock companies listed on the Palestine Stock Exchange and have been designed to consider the uniqueness of the local market and the economic situation to ensure their practical applicability.

The governance instructions aim to establish a comprehensive legal framework to regulate the governance affairs of public joint-stock companies listed, in line with the prevailing laws and regulations in Palestine, and contribute to enhancing the principles of trust, transparency, and accountability, improving the performance quality of boards of directors, increasing companies' competitiveness and market value, and enhancing the trust of stakeholders and investors.

The General Director of the Authority, Mr. Burak Al-Nabulsi, also noted that the Authority will provide all forms of technical support and necessary facilities to companies during the transitional period, enabling them to align their internal systems with the new requirements smoothly, achieving a balance between legal compliance and operational flexibility. He emphasized that sound governance constitutes the backbone of any stable economy, considering that these instructions represent a qualitative leap in the development of the Palestinian financial market and affirm to the world the strength of the Palestinian legislative environment and its ability to protect investments.

The instructions also contribute to improving the investment climate, activating financial market performance and expansion, boosting the national economy's ability to withstand risks, and maintaining financial and economic stability.

The instructions include advanced technical requirements aimed at enhancing the quality of institutional performance, the most prominent of which is strengthening the independence of boards of directors by establishing strict criteria for defining "independent member" and necessitating the presence of at least one independent member on the board, in addition to mandating gender representation in boards of directors, believing in the importance of diversity in enhancing financial and administrative efficiency.

The instructions also included the incorporation of disclosure requirements regarding environmental, social, and corporate governance (ESG) practices, in alignment with global trends in sustainable financing. In addition to the mandatory rules, the Authority will issue a set of optional governance rules that allow companies to elevate their compliance and institutional excellence to advanced levels.

In this context, the Authority called on public joint-stock companies, legal advisors, and investors to review the full text of the instructions on its official website.