Chapter Two: Responsibilities of the Board of Directors and Senior Management
Article Five: Responsibilities of the Board of Directors
1. The Board of Directors is primarily responsible for the financing activities conducted by the finance company and ensuring that these activities comply with the principles and rulings of Islamic Shariah in accordance with the committee's decisions. Specifically, it is responsible for the following: A. Overseeing the finance company's adherence to and implementation of the Shariah rulings issued by the committee. B. Ensuring the existence of an effective communication policy and mechanism between the key units of the finance company, enabling these units to communicate with senior management on matters related to the compliance of financing activities with the principles and rulings of Islamic Shariah in accordance with the committee's decisions. C. Establishing appropriate compensation and remuneration for the members of the committee based on the recommendation of the Nomination and Remuneration Committee in accordance with the scope of their duties and responsibilities. D. Evaluating the performance of the committee members based on their competence, knowledge, contribution, and effectiveness. 2. The committee is directly linked to the Board of Directors. 3. The Board approves on all policies and procedures governing the work of the committee and oversees their implementation. Article Six: Responsibilities of Senior Management
- Identify Shariah-related issues and refer them to the committee for a decision, providing the necessary information and disclosures in a timely manner.
- Follow up on and implement the Shariah decisions issued by the committee.
- Provide continuous education and training programs for key internal stakeholders, including the Board, the committee, and employees involved in Shariah and financial matters1.
- Ensure that financing activities comply with the principles and rulings of Islamic Shariah as outlined in the committee's decisions and recommendations.
- Inform the Board and the committee about products suspected of not complying with Shariah principles through official reports, and immediately halt any products found to be non-compliant with Shariah principles.
- Promote and instill a culture of compliance with Shariah principles within the finance company and familiarize relevant employees with Shariah-compliant financing products.
- Develop financing products that align with Shariah principles and rulings.
1The paragraph is for guidance purposes.