The following terms defining the corresponding meanings unless otherwise stated :
Corporate Governance (CG)
Issued by STC Board. This definition is either specific to a particular case or wider including various cases. Therefore, an agreement on a universal definition has not been reached yet.
Since the CG has initially emerged while dealing with certain events which were different in terms of timing, significance and originating countries, therefore, the most commonly used terms are defined bellow:
Disclosing financial, organizational and statistical information to the concerned parties enabling them to evaluate the company performance.
Responsibilities and powers
Clearly identify powers and responsibilities and ensure that they have been effectively communicated and appropriately exercised.
Management commitment and readiness to answer Board of Directors questions and inquiries in a clear, accurate and appropriate manner. And Board commitments to shareholders and other concerned parties.
Treating concerned parties fairly and taking their interests into consideration.
The basic rules for handling Corporate Governance matters. It includes 31 Principles reflecting the most commonly used principles worldwide.
The law issued by royal decree no. m/6 dated 22/3/1385 and its amendments
The regulation issued by royal decree no. m/35 dated 24/12/1418
Saudi Telecom Company (STC).
Capital market law
The law issued by royal decree no. m/30 dated 2/6/1424 and its by-laws and instructions.
Capital market authority
The Authority established by the "Capital Market Law" issued by the royal decree no. m/30 dated 2/6/1424.
STC Board of Directors who is responsible to management the company to fairly achieve shareholders interests.
STC Board of Directors' Chairman.
STC's Board of Directors Members elected by the STC's general assembly to form the Board.
Committees appointed by the Board.
Executive management including the CEO, VPs, GMs, and equivalents.
Any natural person including the CEO, VPs and the financial managers practicing management and responsible for establishing and implementing the company strategic decisions (capital market authority definition).
Any related party has relationship with the company internally or externally.
Market Capital Law issued by royal decree number 30/M dated 2/6/1424 defined control as "the ability to influence the actions or decisions of another person through, whether alone or with a relative or affiliate, directly or indirectly holding 30% or more of the voting rights in a company"
The Market Capital Authority glossary issued by Market Capital authority counsel by resolution number 4-11-2004 dated 20/8/1425, defined Control as "the direct or indirect ability or power to exercise effective influence over the actions and decisions of another person."