The Board of Directors of Methanol Chemicals Company (Chemanol), a leading Saudi petrochemical company, announced its decision, issued on February 16, to reconstitute its Audit Committee. This decision comes as part of the company's ongoing efforts to strengthen its corporate governance structures and ensure the highest levels of efficiency and transparency in its operational and financial processes.
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul) website, the key changes included the appointment of Mr. Fahad bin Ibrahim Al-Aqifi as Chairman of the Committee (from outside the Board), succeeding Mr. Yousef bin Ibrahim Al-Rajhi, who will continue to serve as a member. Mr. Abdullah bin Mohammed Al-Qahtani, an independent Board member, was also added to the Committee, replacing Mr. Saad bin Abdulaziz Al-Mashouh. The company affirmed that this new structure will ensure the continued efficiency and effectiveness of the Committee's work until the end of its current term on November 11, 2028.
The importance of the audit committee in corporate governance
The audit committee is a cornerstone of any publicly traded company's governance system, undertaking vital responsibilities that include overseeing the integrity of financial statements, reviewing internal control and risk management systems, and ensuring compliance with applicable regulations and laws. Reconstituting the committee and appointing a chairperson from outside the board significantly enhances its independence and objectivity, which positively impacts the confidence of investors, regulators, and stakeholders in the soundness of the company's financial practices.
The economic context and the role of “Kemanol”
Established in 1989 and headquartered in Jubail Industrial City, Chemanol plays a pivotal role in the Kingdom of Saudi Arabia’s downstream industries. As a leading producer of high-quality methanol and its derivatives, the company actively contributes to achieving the goals of Saudi Vision 2030, which aims to diversify the economy and reduce dependence on oil. The implementation of best governance practices, as demonstrated in this resolution, supports the sustainability of the company’s operations and its competitiveness both domestically and internationally, reinforcing its position as a trusted partner in global markets.
Expected impact of the decision
This new audit committee structure is expected to enhance financial and operational oversight within KEMYA. It also sends a strong message to the financial market and international investors about the company's unwavering commitment to transparency and accountability, which could bolster its investment appeal and support its future expansion plans amidst the highly competitive global petrochemical sector. This move underscores the maturity of the regulatory environment in the Saudi market and the commitment of listed companies to adhering to the highest international standards of governance.
