A new range of corporate governance rules come into effect in April 2010. The new regulations attempt to introduce internationally accepted corporate governance rules into the realm of commercial companies in the UAE. Tarik El-Bakri explores these developments and provides useful tips for companies that are required to comply.

In brief:

• The corporate governance code issued pursuant to the "Security and Commodities Authority's Chairman's Decision No. 32/R for 2007 on Corporate Governance Code" (the Code) has been recently superseded and amended by the "Ministry of Economy's Decision No. 518 of 2009".

• The Security and Commodities Authority (SCA) Chairman's Decision, as amended by the Ministerial Decision (the Decision), requires companies and institutions that have securities listed in any securities market in the UAE and members of their boards of directors to adopt corporate governance rules that aim to:

1. create an internal control system within their company; and