Towards a legal framework for corporate governance amid artificial intelligence

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Abstract

This paper addresses the procedures to develop a legal framework for corporate governance amid artificial intelligence technology in Jordanian legislation. The analytical and descriptive approach is adopted to analyze the texts of the Jordanian Companies Law No. 22 of 1997, its amendments, and Instructions for the Corporate Governance for Shareholding Listed Companies for the year 2017. Though the Jordanian legislation has established rules and principles of governance, whether, in the corporate law or governance instructions, the Jordanian legislation does not incorporate legal texts that simulate the artificial intelligence into these principles (Yazid, 2016). The results demonstrate that the Jordanian legislation is still in the process of organizing and legalizing the concept of artificial intelligence in the Jordanian Companies Law and the principles of commercial companies’ governance. With that, this article recommends that the Jordanian legislator should amend the law that regulates artificial intelligence issues in the governance of commercial companies to keep up with the development in the era of the digital economy. This would protect commercial companies and those with interests in them by enhancing the principles of transparency, independence, and disclosure, and preserving information security in them according to the artificial intelligence.

Keywords: Artificial Intelligence, Commercial Companies, Corporate Governance, Jordanian Legislation

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: K2, K290

Received: 21.01.2024
Accepted: 21.10.2024
Published online: 25.10.2024

How to cite this paper: Al-Mahameed, M. (2024). Towards a legal framework for corporate governance amid artificial intelligence. Corporate Law & Governance Review, 6(3), 113–121. https://doi.org/10.22495/clgrv6i3p12