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Article 5: Responsibilities of the Board of Directors
No: 41042498
Date(g): 12/2/2020 | Date(h): 18/6/1441
Effective from Aug 09 2020 - Aug 08 2020 To view other versions open the versions tab on the right
1.
The board is primarily responsible for the overall Shariah governance framework of the bank and the compliance of its Islamic banking activities with the Shariah principles and rules. The board is also responsible for approving the bank’s Shariah governance framework, performing continuous oversight over the effective functioning of the framework, and ensuring that the framework is commensurate with the size, complexity, and nature of the bank’s business.
2.
The board shall approve all Shariah policies of the bank and supervising the effective implementation of these policies.
3.
The board shall provide the necessary mechanisms and methodology for risk management to protect the interests of investment account holders through Profit-lost sharing accounts.
4.
The board shall supervise the bank’s compliance and implementation of the Shariah decisions issued by the committee.
5.
The board shall ensure that an effective communication policy among the key functions of the bank is in place to facilitate and allow the escalation of important matters related to compliance of Islamic banking activities with the Shariah principles and rules.
6.
The board shall remunerate the Shariah committee members appropriately based on the recommendation of the nomination and remuneration committee of the board. Such remuneration shall be commensurate with the duties and responsibilities of these members and consistent with SAMA’s relevant instructions.
7.
A formal procedure shall be adopted, as proposed by the nomination and remuneration committee, to assess the performance of the Shariah committee members based on competence, knowledge, contribution and effectiveness.
8.
The resume of all the Shariah committee members shall be disclosed so that shareholders and investors can judge the competence and ability of these members to carry out their duties effectively.
9.
The mechanism used to supervise the integrity and performance of the committee members shall be disclosed. Moreover, it must be taken into account not to nominate any member who has previously been convicted by a court judgment or of a crime impinging on honor or integrity.
