Legal Guarantees for Corporate Governance in Commercial Companies

The topic of corporate governance is of utmost importance in our era, and this study aimed to understand it, along with identifying the resulting effects and legal guarantees of corporate governance and their impact on Yemeni company law. Additionally, it assessed the suitability of the legal provisions in Yemeni company law related to corporate governance and their consistency or divergence with comparative laws.

In this study, we conducted numerous comparisons between the corporate governance rules in Yemeni company law and the principles of corporate governance issued by the Organization for Economic Cooperation and Development (OECD), particularly the principles of the G20. We also compared them with various laws and regulations, focusing on the latest legal amendments.

This study confirmed that the concept of governance is relatively modern, and attention to governance and its principles has only emerged recently. It highlighted the urgent need to regulate governance rules as a guarantee for the parties involved, leading to the protection of the rights of stakeholders and limiting economic setbacks.

The study pointed out the factors leading to the emergence of governance principles, including economic, social, and legal factors. It also provided a historical overview of the historical evolution of the concept of corporate governance, citing examples from Western and Arab systems.

It is worth mentioning that the study emphasized the importance and legal characteristics of governance and analyzed its principles to demonstrate the adaptation and legal nature of governance, as well as the differences between them.

The study delved into the importance and legal nature of governance, analyzing its principles to demonstrate their adaptation and legal nature, as well as the differences between them. It also addressed the appearance of governance principles by examining economic, social, and legal factors. The legislative texts in the study’s jurisdiction were presented, emphasizing protection methods against arbitrariness and outlining the responsibilities of stakeholders.

The Yemeni legislator has not yet played its role in establishing control by enacting specific legislation regulating governance principles. This is due to the fact that the executive authorities have not recognized the importance of governance and have not kept pace with economic development by establishing specialized administrations to encourage the governance process. Some legislative texts even restrict governance rules, evident in the ways of appointing the president and members of the board of directors in companies or mixed institutions, with requirements such as the minister being appointed as the board’s president and managers of some institutions or companies appointed as board members, without considering their specialization, interests, and the conflicts caused by such appointments.

This study highlighted the importance and legal characteristics of governance, analyzing its principles to demonstrate their adaptation and legal nature, as well as the differences between them. The study also focused on the principles of governance and its guarantees, presenting the legislative position in the study’s jurisdiction and methods of protection against arbitrariness, outlining the responsibilities of stakeholders.

It is noteworthy that the Yemeni legislator has not yet played its role in establishing control by enacting specific legislation regulating governance principles. This is due to the fact that the executive authorities have not recognized the importance of governance and have not kept pace with economic development by establishing specialized administrations to encourage the governance process. Some legislative texts even restrict governance rules, evident in the ways of appointing the president and members of the board of directors in companies or mixed institutions, with requirements such as the minister being appointed as the board’s president and managers of some institutions or companies appointed as board members, without considering their specialization, interests, and the conflicts caused by such appointments.