Bahrain's central bank issues corporate governance rules

The Central Bank of Bahrain (CBB) has published details of its new rules on board attendance.

Developed in line with the corporate governance code issued in the Gulf nation earlier this year, the regulations are designed to strengthen the role of boards in the financial sector.

Individual board members are now required to attend at least 75 per cent of all board meetings in the financial year, with voting proxies for board meetings prohibited at all times.

The rules also include detailed requirements for audit, remuneration and nominating committees, emphasising the importance of independent directors in board composition.

"Good corporate governance attracts investment, protects investors and other stakeholders, and enhances a company's value," said Khalid Hamad, the CBB's executive director of banking supervision.

Similar requirements for insurance providers and investment companies will be published in the near future, according to the central bank.

The new rules come shortly after Bahrain was named 2010's best financial centre by Global Investor magazine.