Article 1 of the Saudi Companies Law

المادة 1 من نظام الشركات · الباب الأول: أحكام عامة فصل تمهيدي

This article defines the key terms of the Companies Law, such as the Ministry, the Authority, the competent authority, relatives and day, and leaves the definition of other terms to the regulations.

Official text (Arabic)

This article has not been amended since the law was issued.

1- يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتضِ السياق غير ذلك:

المملكة: المملكة العربية السعودية.

النظام: نظام الشركات.

اللوائح: اللوائح الصادرة تنفيذًا لأحكام النظام.

الوزارة: وزارة التجارة.

الوزير: وزير التجارة.

الهيئة: هيئة السوق المالية.

الجهة المختصة: الوزارة، إلا ما يتعلق بشركات المساهمة المدرجة في السوق المالية فتكون الهيئة.

الأقارب:

أ- الآباء، والأمهات، والأجداد والجدات وإن علوا.

ب- الأولاد، وأولادهم وإن نزلوا.

ج- الأزواج والزوجات.

اليوم: اليوم التقويمي، سواء أكان يوم عمل أم لا.

2- دون إخلال بأحكام النظام، تُضمن اللوائح تعريفات للكلمات والعبارات الأخرى الواردة في النظام.

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 1 explained in plain English

This article is the key to reading the Companies Law. It explains the meaning of words that recur throughout its articles, and these meanings apply wherever the words appear unless the context requires otherwise.

The Ministry and the Minister: the Ministry of Commerce and its Minister.
The Authority: the Capital Market Authority.
The competent authority: as a rule, the Ministry of Commerce, except for joint stock companies listed on the capital market, where it is the Capital Market Authority. So when the Law says "competent authority", the reader needs to work out whether their company is listed in order to know which body is meant.
The regulations: the regulations issued to implement the provisions of the Law.
Relatives: parents and grandparents however far up the line, children and their descendants however far down, and spouses. Siblings, for example, are not covered by this definition because they are not mentioned in it.
Day: the calendar day, whether or not it is a working day; so periods counted in days under the Law include holidays.

Paragraph (2) provides that the regulations include definitions of other words and phrases used in the Law, without prejudice to its provisions. So any term not defined here is defined in the regulations.

Article 2 builds on these definitions by defining the "company" itself as a legal entity established under the provisions of the Law.

Practical example

Ahmed, a partner in a limited liability company in Jeddah, received an invitation to a meeting that refers to a period counted in days. Under this article, the period is counted in calendar days, so the weekend is included and not excluded.

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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