The company must disclose the information required by the corporate governance regulations issued by the Capital Market Authority. It must also…

The Capital Market Authority's (CMA) Corporate Governance Regulations mandate extensive disclosures in the annual Board of Directors' report to ensure transparency for shareholders and stakeholders. These regulations explicitly require companies to detail the formation and composition of the board, including the classification of each member as executive, non-executive, or independent. Furthermore, to manage and disclose potential conflicts of interest, the regulations require the disclosure of all other company boards on which a director serves. This naturally includes any shareholder companies where a board member also holds a directorship. Both disclosures are fundamental requirements for assessing board effectiveness and governance.

A. This option is incomplete. While disclosing such directorships is required, it is not the only mandatory disclosure listed; the classification of board members is also required.

B. This option is incomplete. While classifying board members is a key requirement, the disclosure of other directorships to identify potential conflicts of interest is also mandatory.

1. Capital Market Authority of Saudi Arabia, Corporate Governance Regulations, Issued by the Board of the Capital Market Authority Resolution No. 8-16-2017, 13 February 2017.

Article 90: The Board of Directors' Report, paragraph (b)(1): This article explicitly requires the board's report to include "The names, qualifications and experience of the Board and its committees' members... The Board report shall also indicate the classification of each Board member as an executive member, a non-executive member or an independent member." This directly supports the statement in option B.

Article 90: The Board of Directors' Report, paragraph (b)(5): This article requires the report to include "The names of companies inside or outside the Kingdom in which a Board member is a member of their current or previous boards of directors." This requirement encompasses the disclosure mentioned in option A, as it mandates revealing all directorships, which would include those in shareholder companies.