Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Corporate governance refers to the system of rules, practices, and processes by which companies are directed and controlled. In Amman, the capital of Jordan, corporate governance laws play a significant role in regulating the conduct of businesses, especially those structured as corporations and companies listed on the Amman Stock Exchange. The legal framework draws from the Jordanian Companies Law, the Jordan Securities Commission regulations, and best-practice codes to ensure transparency, fairness, and accountability in corporate management. The main aim is to protect the interests of shareholders, stakeholders, and the broader economy.
Effective corporate governance is crucial for companies seeking to operate with integrity and maximize their long-term value. You may require the services of a lawyer specializing in corporate governance in Amman if you find yourself in one of the following situations:
The legal landscape of corporate governance in Amman, Jordan, is shaped by multiple laws and authorities. The Companies Law No. 22 of 1997 and its amendments form the backbone of corporate regulation, setting out the duties and responsibilities of directors, the structure and functioning of boards, and requirements for company meetings and reporting. The Jordan Securities Commission oversees listed companies, enforcing principles of transparency, disclosure, and fair dealing. Corporate governance codes, such as the "Corporate Governance Code for Listed Companies," provide additional guidance on best practices regarding board composition, audit committees, and risk management. Other relevant constraints come from the Central Bank of Jordan for financial institutions and sector-specific regulations.
These laws and guidelines ensure that directors act in good faith, avoid conflicts of interest, prioritize company interests, and maintain accurate, timely disclosures to shareholders and regulators. Non-compliance can result in administrative penalties, financial liabilities, or criminal prosecution.
The Jordanian Companies Law No. 22 of 1997, as amended, serves as the primary legal framework for corporate governance, supplemented by specific regulations for public companies and financial institutions.
The main authorities are the Jordan Securities Commission for listed companies, the Ministry of Industry and Trade, and, for banks, the Central Bank of Jordan.
Yes, companies registered in Amman are required to have a board of directors whose duties are set out in the Companies Law and relevant corporate governance codes.
Currently, there is no legal requirement for gender diversity on boards, but increasing emphasis is placed on diversity as a corporate governance best practice.
Directors must act in good faith, exercise due care, avoid conflicts of interest, and ensure that the company complies with all applicable laws and regulations.
Penalties can include administrative fines, civil liabilities, criminal charges, and ultimately de-listing from the stock exchange for severe violations.
They apply to all companies, with additional requirements for public companies, banks, and financial institutions.
Shareholders may use their voting rights at general meetings to remove or challenge directors, and may also seek legal remedies for breaches of duty.
Yes, Jordanian law requires regular financial reporting and the disclosure of material information to shareholders and regulators.
The code is available through the Jordan Securities Commission and provides detailed guidance on board practices, audit committees, and internal controls.
Individuals and companies seeking further information or assistance regarding corporate governance in Amman may refer to the following organizations:
If you are seeking legal advice or assistance with a corporate governance issue in Amman, it is recommended that you:
Taking these steps will help ensure that your company is properly governed and in compliance with local laws, reducing the risk of disputes and penalties while safeguarding your business interests.
