Fair Treatment and Protection of the Rights of Shareholders under Saudi Law

Article (1) of the Corporate Governance Regulations ("the Regulations"), issued by the Board of the Saudi Capital Market Authority, pursuant to Resolution Number (8/16/2017), dated 16/5/1438H, corresponding to 13/2/2017, defines corporate governance as the rules to guide a Company in regulating the relationship among  its Board, Executive Directors, and Shareholders. Read more

 

Aspects Necessary for Making Valid Checks

A check is deemed a significant negotiable instrument. The Saudi Legislature regulates the conditions and particulars for issuing a legally effective check. Article (91) of the Saudi Negotiable Instruments Law states that a check shall contain the following basic elements:   the word check written in the text of the instrument in the same language in which the check is written; an unconditional order to pay a specific sum of money; the name of the drawee; place of  payment;  date and place of  making the check; and the signature of the drawer. Read more

 

Matters Outside the Power of an Execution Judge

The execution judge shall have the authority to decide on execution disputes whatever their value in accordance with the provisions of the summary court. The execution judge has the authority to take decisions and issue orders related to execution and may ban travel and lift travel restrictions, order detainment and release, order disclosure of assets, and hear claims of insolvency. (Article 3 of the Execution Law). Read more

 

Dismissal of Claimant’s Demand for Reinstitution of a Company’s Shares

A Company’s capital is composed of cash and in kind shares contributed by the partners of the company. The shareholding of a partner may also be compensation for some work (work share) if accepted as shares; however, it shall not be deemed to constitute the capital of the company under Article (5) of the Saudi Company Law. Read more

 

Legal Measures for Cancellation of Professional Accreditation and Licenses for Engineering Offices and Companies

On 11 Shaban 1439H, corresponding to 27 April 2018, the draft Executive Regulations of the Practice of Engineering Professions Law was published in the Official Gazette Umm Al-Qurra, edition no. 4721.  This Executive Regulation shall come into effect after its publication in the Official Gazette according to Article 14 of the Regulation. Read more

 

Voluntary Corporate Liquidation and Limits of the Liquidators’ Liability

Voluntary liquidation is a self-imposed dissolution of a company.  It is essential to identify the extent of this type of liquidation in terms of  issuance of  the liquidation resolution, publication, duration, and the liquidators’ liability. Read more

 

Collective Trademarks License Registration

Collective trademarks are the marks used to distinguish goods or services of facilities belonging to members of a certain entity to be used by the members of the entity. Read more

 

Keeping Commercial Records

Requirement for Keeping Commercial Records
Keeping commercial records by every merchant is required in a way that shows his exact financial status and the rights and obligations pertaining to his trade. Article 1 of the  Commercial Books Law, 1409H requires that the records be up-to-date and in Arabic. Read more 

 

Registration of Family Names as Trade Name

A trade name is the name used by a trader, whether an individual or a corporation, to distinguish the trader’s own business from the trader’s counterparts (*1). The trade name is an important corporate component for the trade store and is essential for each trade enterprise (*2). Read more

 

 

Restrictions and Effects on Completion of Foreign Companies Temporary Works

Article 202 of the Saudi Company Law (1437H-2015) states that a foreign company, which is licensed to practice its business activities, may exist in the Kingdom of Saudi Arabia temporarily for execution and completion of certain works within a specified period of time. Read more

 

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