Composition and Duties

Composition and Duties

Board of Trustees Composition

The Board of Trustees is composed of up to nineteen members to be appointed by the General Assembly every five years, and including the Secretary General, and they continue in office until members of the succeeding Board are appointed. The members of the Board of Trustees is elected from among the following categories, taking into account their geographical distribution:

1 Up to ten members representing Islamic financial institutions, including a maximum of five from the founding members and those who exercise the same rights as the founding members.

2 Up to two practicing members in accounting and auditing whose professional work relates to Islamic financial institutions.

3 One member from the users of financial statements of Islamic financial institutions.

4 Up to three members representing regulatory and supervisory authorities referred to in paragraph 3/3 of Article 3 of this Statute.

5 Up to two members from Shari’ah Fiqh.

Board of Trustees Duties

AAOIFI Board of Trustees provides the oversight and supervision of AAOIFI operations.  Members of the Board of Trustees are appointed by the General Assembly to typically serve a 5-year term.  The Board of Trustees is comprised of up to 19 individuals mainly representing AAOIFI institutional members.

The Board of Trustees is responsible for the appointment of AAOIFI’s standards boards – i.e. the Shari’ah Board, Accounting and Auditing Standards Board, and Governance and Ethics Standards Board.

The Board of Trustees is also responsible for arrangement for AAOIFI’s sources of finance, approaching relevant authorities for adoption of AAOIFI standards, approval of AAOIFI’s work plan and budget, and appointment of Secretary General.  Its responsibilities also include reviewing and approving the annual financial statement, for final adoption by the General Assembly.

Powers of the Board of Trustees

The Board of Trustees has the following powers:

(A) Appointment of members of AAOIFI’s Technical Boards and termination of membership, in accordance with the provisions of this Statute.

(B) Arrangement of sources of finance for AAOIFI and investing those resources.

(C) Nomination of the external auditor and recommending his fee each year to audit the annual financial statements.

(D) Approvals of AAOIFI’s work plan and the annual budget.

(E) Approval of the Board of Trustees’ annual report, financial statements, external auditor’s report and submission of the same to the General Assembly for approval.

(F) Proposing amendments to the Statute of AAOIFI’s.

(G) Determination of the rules for remunerating members of AAOIFI’s Boards and sub-committees for the costs incurred in the course of discharging their duties, taking into account that members of these Boards and sub-committees perform their work free of charge.

(H) Appointment of the Secretary General and specifying terms and conditions of his services.

(I) Approaching the concerned authorities responsible for the implementation of standards in countries in which Islamic financial institutions operate in order to adopt the statements, standards and guidelines issued by AAOIFI.

However, neither the Board of Trustees nor any of its sub-committees including the Executive Committee, interferes directly or indirectly in the work of the other Boards of AAOIFI or direct them in any manner.

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