In the Middle East region, companies can no longer afford to neglect the liability risks of their board of directors especially with the advancement of global standards in corporate governance.

The challenges and risks are no less real and the current financial crisis highlights the hurdles of operating in a global business environment. Director’s increased pressure in exercising their duties has further stamped the importance for the board to gain deeper insights on their duties and liabilities.

This urgency was underscored again in 2012 when the role of directors has gained increasing emphasis in the GCC as their duties have extended over the years. If poorly implemented or fulfilled, it will attract serious penalties for both the directors and the company in the event of a breach.

Therefore, it is vital for boards to be aware of their responsibilities and duties and to ensure they keep up to date with any changes in the rules and regulations of the authority, as well as playing an active role in the company.