The Board of Directors structure and responsibilities

The Board of Directors of ACWA POWER Company (the “Company” or “ACWA Power”) (the “Board”) is the ultimate responsible body within the Company that is elected by the Ordinary General Assembly, in accordance with applicable laws and regulations. Without prejudice to the Capital Markets Law, Companies Law, applicable regulations, the Company’s Bylaws and the internal governance of the Company, the Board assumes the responsibility of providing direction, guidance and leadership on strategy, operations, and business expansion in the Kingdom of Saudi Arabia and internationally, while assessing opportunities, challenges, risks and associated mitigative measures. Furthermore, the Board oversees the Company’s internal controls, compliance framework and risk register.

The Board is vested with full powers by the Shareholders to manage the business of the Company and supervise its affairs, as per the Company’s Articles of Association and Bylaws. To optimize the management of the Company and upon appointment on 05 January 2022, the Board restructured its committees into four functional Board Committees (the ”Board Committees”). Board Committees have been established to assist and provide insight and support to the Board in fulfilling its fiduciary responsibilities, namely: the Board Audit Committee; the Nomination and Remuneration Committee; the Board Executive Committee; and the Risk Management Committee. All Board Committees have their respective charters that stipulate the respective Board Committees’ roles, responsibilities and delegated powers within the context of their specific expertise. The Board Committees deliberate and oversee various matters and provide quarterly updates and reporting to the Board for information, guidance and/or approvals, as applicable. In addition to committees mandated by regulations, the Board may at any time establish specialized committees, as may be needed, for effective governance, oversight, and operations of the Company. .

The Board term:

The current Board term began on 05 January 2022 for a period of three years ending on 04 January 2025. Subsequently, the Board at its meeting held on 16 January 2022 resolved to appoint Mr Mohammad Abdullah Abunayyan (Non-Executive Member) as Chairman of the Board; Mr Suntharesan Padmanathan (Executive Member) as Vice-Chairman of the Board; Mr Mohammad Abdullah Abunayyan and Mr Suntharesan Padmanathan as the Company’s representatives in front of the Capital Market Authority and the Saudi Exchange; and Ms Hager Al Twegieri as Secretary of the Board. As per the Company’s Bylaws, the term of a director is for a period not to exceed three (3) years, subject to renewal or extension by the Ordinary General Assembly. Nevertheless, there is no limit on the number of terms that a non-executive/executive board member may serve on the Board.

On 29 November 2022, the Company published an announcement on the Saudi Exchange regarding the Board’s recommendation to increase Board seats from 11 to 12 upon the effectiveness of the Companies Law issued by Royal Decree No (M/132) dated (01.12.1443H) and its implementing regulations and to start the nomination period for the twelfth Board seat to be elected during the next Extraordinary General AssemblyThe Company’s Extraordinary General Assembly, held on 12 February 2023G, elected Mr Raad Al-Saady as the twelfth member of the Board for the current Board term. Subsequently, the Board on 14 February 2023 resolved to appoint Mr Raad Al-Saady as Vice-Chairman of the Board and Managing Director, considering Mr Paddy Padmanathan had voluntarily requested from the Board to be relieved of his role as Vice-Chairman while remaining as a Board member for the remainder of the current Board Term.

Evaluation of the Board and the Board committees

In line with guiding article (39/E) of the Corporate Governance Regulations issued by the CMA, the Board appointed an external third-party consultancy firm to assess its performance. The consultancy firm has proven records of conducting board assessments with local and international multinational companies. The selection and screening of the third party consultancy firm was in line with the endorsement and recommendation of the Board Nomination and Remuneration Committee.

As required by the CMA’s Corporate Governance regulation, the Board participates in the Company’s General Assembly meetings, which serves as a platform for shareholders to provide their suggestions and remarks directly to the members of the Board.