The corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, to protect the rights of shareholders, stakeholders and employees through contractual relationships, and sound financial and accounting instruments, pursuant to the disclosure and transparency principles. The Capital Market Authority in the Kingdom has issued the corporate governance regulations for solicitation of the opinion of the concerned parties.

The Tasnee Board has approved the corporate governance guide which the company observes its items and adheres thereto. It also applies most of the rules contained in the corporate governance regulation issued by the Capital Market Authority in KSA and provides a complete set of policies and procedures in the form of regulations.

Rules of the corporate governance regulations that are not applicable in the company are detailed as follows: 
Article Number Article Content ​Reasons for non-application
​3 ​The right to obtain a share from the company's assets upon liquidation thereof.

​The Company's Bylaws do not contain any provision in this regard, and it is a provision stipulated by the Companies Act.

6 (B)
Accumulative voting for electing the Board members.
Voting to elect the members of the Board, is performed by the following voting method in alignment with the Company's Bylaws, noting that the amendment of the Bylaws was proposed to the General Assembly by adding the method of accumulative voting when selecting the Board members, but the Assembly refused to apply it .
​6 (D) ​Investors of legal personality who act on behalf of others shall disclose their policies in voting and their actual voting in their annual reports and shall disclose the way in which they deal with any substantial conflict of interests that may affect the practice of the fundamental rights of their investments. ​There is no provision in the Company's Bylaws that authorizes the Company to obligate investors to disclose this.
10 (E)
Setting a written policy that governs the relationship with the stakeholders for protection and conservation of their rights.
The contracts guarantee this, and the Company is keen to set suitable policies for such purpose.
 
12 (D)
Prohibition of conjoining the chairman position and any executive position.
The company's practicality and interest requires the Chairman to undertake some of the executive duties.
​12 (I) ​The person of legal capacity who has the right as per the Company's Bylaws, to appoint representatives thereof in the Board of Directors may not vote when selecting other board members. ​This is non-applicable since there is no provision in the Company's Bylaws regarding private rights of legal personalities by appointing representatives thereof in the Board of Directors.