Article 45 of the Saudi Capital Market Law
المادة 45 من نظام السوق المالية
The article requires issuers to submit quarterly and audited annual reports to the Authority with set content, and treats some of their data as confidential, not to be disclosed before it is provided to the Authority and announced.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - يجب على كل مصدر يطرح أوراقًا مالية للجمهور أو تكون له أوراق مالية متداولة في السوق أن يقدم إلى الهيئة تقارير ربع سنوية وسنوية، وتكون التقارير السنوية مدققة حسبما تنص عليه قواعد الهيئة. على أن تتضمن هذه التقارير ما يأتي :
1 - الميزانية العمومية.
2 - حساب الأرباح والخسائر.
3 - قائمة التدفق النقدي.
4 - أي معلومات أخرى تنص عليها قواعد الهيئة.
ب - بالإضافة إلى المعلومات والبيانات المطلوبة في الفقرة (أ) من هذه المادة، يجب أن يتضمن التقرير السنوي ما يأتي :
1 - وصفًا كافيًا للشركة المصدرة وطبيعة عملها وأنشطتها، حسب ما تنص عليه القواعد الصادرة عن الهيئة.
2 - معلومات تتعلق بأعضاء مجلس الإدارة والمديرين التنفيذيين وكبار الموظفين وكبار المساهمين أو المستثمرين، حسب ما تنص عليه القواعد الصادرة عن الهيئة.
3 - تقويم إدارة الشركة المصدرة للتطورات الحالية والمتوقعة، وأي احتمالات مستقبلية يمكن أن تؤثر بصورة مهمة على نتائج أعمال الشركة أو وضعها المالي، حسب ما تنص عليه القواعد الصادرة عن الهيئة.
4 - أي معلومات أخرى تتطلبها قواعد الهيئة على النحو الذي تراه ضروريًّا لمساعدة المستثمرين ومستشاريهم على اتخاذ قرار الاستثمار في الأوراق المالية للمصدر.
ج - تعد جميع المعلومات والبيانات المشار إليها في الفقرات (أ/1، 2، 3) و(ب/3) من هذه المادة معلومات سرية. ويحظر على الشركة المصدرة – قبل تزويد الهيئة بهذه المعلومات والبيانات وإعلانها – إفشاؤها إلى جهات لا يقع على عاتقها التزام بالمحافظة على سرية المعلومات وحمايتها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 45 explained in plain English
This article sets out the system of periodic reports for issuers.
Who is bound? Every issuer that offers securities to the public, or that has securities traded on the Market.
Paragraph (a): quarterly and annual reports. The issuer submits them to the Authority, and the annual reports are audited in accordance with the Authority's rules. They include:
- the balance sheet;
- the profit and loss account;
- the cash flow statement;
- any other information provided for in the Authority's rules.
Paragraph (b): additions to the annual report. The annual report must also include, in accordance with the Authority's rules:
- an adequate description of the issuing company and the nature of its business and activities;
- information about board members, executive managers, senior employees and major shareholders or investors;
- management's assessment of current and expected developments, and any future possibilities that could materially affect results or the financial position;
- any other information required by the Authority's rules to help investors make their decision.
Paragraph (c): confidentiality. The information in (a/1, 2, 3) and (b/3), that is, the three financial statements and management's assessment of developments, is confidential information. The issuing company is prohibited, before providing it to the Authority and announcing it, from disclosing it to parties that have no obligation to keep it confidential.
Link to Articles 44 and 46: Failure to submit any of these reports is one of the cases in which the board may reject a prospectus under Article 44. Article 46 adds a separate obligation to notify the Authority in writing of material developments that may affect prices, and to notify the Market of them if the entity has a security traded there.
Practical example
A listed company in Riyadh has finished preparing its quarterly financial statements, which show a fall in its profits. Before providing these statements to the Authority and announcing them, it may not let a party that has no obligation to keep them confidential see them, such as a friend of one of the directors who trades on the Market.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 45 of the Saudi Capital Market Law
Must listed companies submit quarterly reports?
Yes. Every issuer that offers securities to the public or has securities traded on the Market must submit quarterly and annual reports to the Authority.
Must quarterly reports be audited?
The text requires that annual reports be audited in accordance with the Authority's rules.
May a company disclose its financial results before announcing them?
No. Before providing them to the Authority and announcing them, it may not disclose them to parties that have no obligation to keep them confidential.
More articles on Disclosure and Periodic Reports
- Article 37
The article requires licensed brokers and their agents to file with the Authority and the Market the reports provided for in the regulations and rules of the Authority and the Market.
يجب على الوسطاء أو وكلاء الوسطاء المرخص لهم أن يودعوا لدى الهيئة والسوق التقارير التي تنص عليها لوائح الهيئة والسوق وقواعدهما.
- Article 42
The article sets out the information a prospectus must contain: a description of the issuer and its management, the securities, proceeds and commissions, audited financial position, and whatever else the Authority requires.
يجب أن تتضمن نشرة الإصدار المعلومات والبيانات الآتية: أ - المعلومات التي تتطلبها قواعد الهيئة التي تبين وصفًا كافيًا للمصدر، وطبيعة عمله والأشخاص القائمين على إ
- Article 43
The article requires the Authority to announce acceptance or rejection of a prospectus, with power to set its period of effect, and requires the issuer to notify the Authority in writing of any material change and publish a press release.
أ - يجب على الهيئة بعد قيامها بمراجعة نشرة الإصدار إعلان قبولها أو رفضها للنشرة. وللهيئة في حالة قبول النشرة أن تحدد فترة زمنية تكون نشرة الإصدار نافذة خلالها.
- Article 46
The article requires the issuer to notify the Authority and the Market in writing of material developments affecting prices, and lets them request information from it and require it to announce or publish it at its own expense.
أ - على الجهة المصدرة للأوراق المالية إبلاغ الهيئة خطيًّا، عند علمها بحدوث تطورات جوهرية قد تؤثر على أسعار الأوراق المالية المصدرة من قبلها. وإذا كان لها ورقة م
- Article 47
The article lets the public, for fees set by the Authority, inspect copies of prospectuses, periodic reports and information filed with it that it has announced or obtained.
يسمح للجمهور، مقابل أتعاب تحددها الهيئة، بالاطلاع على نسخ من نشرات الإصدار والتقارير الدورية والمعلومات والبيانات المودعة لدى الهيئة التي جرى الإعلان عنها أو ال
- Article 48
The article authorizes the Capital Market Authority to set disclosure forms and instructions, relieves it of responsibility for missing or misleading documents filed with it, and makes the publisher of an advertisement responsible for its publishing errors.
أ - تحدد الهيئة نماذج وتعليمات الإفصاح، بما في ذلك المعلومات التي يجب أن تتضمنها نشرات الإصدار والتقارير الدورية ، التي يتعين على الجهات التي تخضع لرقابة الهيئة
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.