Saudi Arabia is prohibiting ministers from heading boards of companies or being members unless directed by the head of the cabinet, in a move that would limit the conflict of interest in companies and improve governance.
Government ministers can’t join or chair the boards of companies, according to the amendment to a Saudi Arabian ministerial decree published in Umm al-Qura.
“Any minister is not allowed to chair the board of any company or serve as a member,” the government said. “This does not include those whose chairmanship or membership is by order from the prime minister.”
Finance minister Mohammed al-Jadaan and Minister of State Ibrahim A. Al-Assaf are currently board members of the state-run energy firm Saudi Arabian Oil Co.
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, also has Al-Jadaan and Al-Assaf as board members, along with the ministers of state, commerce, investment, and tourism. State-owned Saudi Arabian Military Industries also has ministers of tourism and industry and mineral resources as board members.
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