This principle is still under review as the second part of it stated underneath needs thorough analysis to the kingdom environment beside the limited associated experiences available up to now.
It should be noted that the word “independence” appeared in more than one principle and left as it is but the second part of it shall be reviewed later at the study completion if needed.
The purpose of the independence principle is to help the members to take their decisions without economical or personal conflicts of interests. These conflicts shall exist unless the following independence rules are available even if the rules do not practically influence their decisions:
6.1 the member shall not be one of the company employees or has left the company shortly.
6.2 the member shall have no relation with the company or its management or any other relation through the existence of significant economical or close family relation.
6.3 the member shall have no businessx relation with the company supplier , customer or affiliating company, competitor or non-profitable establishment receiving donation from the company.
There are two parts for the independence item. The study focus on the second part:
1- The independence regarding the relation of the member with the company, its management and its concerned parties such as the suppliers, customers, competitors. This part is generally approved in the company CG principles and also in the ideal practices.
2- Independence regarding the relation of the member with the controlling shareholders. This is applied more to the developing markets and more associated with the interests of the minority shareholders.
