The Ministry of Economy and Commerce has issued circular regarding the evaluation of the stakes of equity holders in private companies.
The Ministry said that the evaluation process were adjusted to suit the provisions of article no. 158 of law no. 11 of 2015 regarding commercial companies, QNA reported.
The circular applies to company's that are regulated by the ministry. The evaluation takes place during mergers, increase of capital, takeovers or when going public.
The Ministry has prepared a list of the residents accredited by it. A resident applying for the evaluation process must have no interests with any analysts working at the evaluating institution and must inform the ministry if there was such a relationship. He must also have no ties with any board members of the evaluating companies that is more recent than three years. The resident must document all the procedures that he or his employees made during the evaluation process, until the report is released. He must keep those documents for at least five years. Within three days, the ministry must also receive a copy of the agreement between the resident and the company that requested the evaluation.
