Bahrain Governance Code

What is the Bahrain Corporate Governance Code?

The Bahrain Corporate Governance Code is a regulatory framework introduced by the Central Bank of Bahrain (CBB) in 2010 to promote accountability, transparency, and fairness in Bahrain’s financial and corporate sectors. It applies to all listed companies and sets out governance principles that align with international standards such as the OECD Principles of Corporate Governance.

The Code ensures that Bahraini companies adopt practices that enhance shareholder protection, board effectiveness, risk oversight, and ethical conduct.

Why the Bahrain Corporate Governance Code Matters

  • Investor Confidence – Protects minority shareholders and strengthens trust in Bahrain’s capital markets.

  • Board Accountability – Clarifies director roles and responsibilities.

  • Transparency – Requires disclosure of financial and non-financial information.

  • Risk Oversight – Mandates strong internal control and compliance frameworks.

  • International Alignment – Positions Bahrain as a competitive, investor-friendly hub in the GCC.

Key Provisions of the Bahrain Corporate Governance Code

  1. Board of Directors

    • Balanced composition with independent directors

    • Separation of chairman and CEO roles

    • Formation of audit, remuneration, and nomination committees

  2. Shareholder Rights

    • Equal treatment of all shareholders

    • Voting rights and participation in general assemblies

    • Clear dividend policies and conflict-of-interest safeguards

  3. Transparency & Disclosure

    • Regular financial reporting to stakeholders and regulators

    • Disclosure of related-party transactions

    • Corporate governance reports filed with the CBB

  4. Internal Controls & Risk Management

    • Establishment of internal audit functions

    • Continuous risk monitoring by the board

    • Annual review of governance and compliance practices

Example in Practice

A Bahrain-listed company must maintain an independent audit committee to oversee internal controls, external audits, and financial reporting. This committee ensures accountability to both shareholders and the CBB.

How VComply Can Help

VComply enables companies in Bahrain to comply with the Corporate Governance Code by:

  • Automating board governance processes such as agendas, minutes, and approvals

  • Centralizing compliance monitoring for CBB regulations

  • Streamlining risk and audit management workflows

  • Supporting policy management across governance functions

  • Delivering real-time dashboards and audit trails for regulators and stakeholders

With VComply, Bahrain-based companies can strengthen compliance, improve governance standards, and foster investor trust.