Audit Committee

Article (7)	Subject to the provisions of the relevant legislation, the board of directors shall establish an audit committee according to the following:-
	A-	The audit committee shall consist of a chairman and two other members, provided that one of them, at least, shall have the experience in auditing, accounting or finance, or shall be a public accountant according to the relevant legislation in force. The board of directors shall elect the committee members among its members other than the members of the executive management or any of the committees established by the board. The audit committee shall meet, at least, once every three months, or whenever necessary.
	B-	The functions and authorities of the audit committee shall be clearly specified, and shall include the following:-
		1.	Recommending to the board of directors to nominate the external auditor to be elected by the general assembly.
		2.	Monitoring the extent of comprehensiveness of the external audit of the business of the company.
		3.	Ensuring the existence of coordination between external auditors, in case there is more than one.
		4.	Reviewing the observations in the reports of the Insurance Commission and the reports of the external auditor and following up measures taken in their reports.
		5.	Studying the annual plan of the internal audit and review the notes in the internal audit reports and following up measures taken in their reports.
		6.	Ascertaining the accuracy and soundness of the accounting, financial and control procedures and the extent of compliance therewith.
		7.	Ensuring that the external auditor reviews the financial statements before presenting them to the board of directors of the company, particularly the compliance with the requirements issued by the Commission.
		8.	Ensuring that the company complies with the Acts, Regulations, Instructions and Decisions that regulate the businesses and activities of the company.
		9.	Meeting with the external and internal auditors, and with the appointed or accredited Actuary, as the case may be, at least once a year and without the presence of representatives of the executive management of the company.
		10.	Recommending to the board of directors with the appointment and resignation or discharging of the internal auditor.
		11.	Presenting to the board of directors the minutes of its meetings and the reports it has prepared.
		12.	Any other duties requested by the board of directors of the company.
	C-	The board of directors of the company shall disclose in the annual report, the names of the audit committee members, its activities and number of meetings held during the year.

sdc ref id

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