Article 143 of the Saudi Companies Law
المادة 143 من نظام الشركات · الفصل الثالث: إدارة شركة المساهمة المبسطة
The article makes the provisions on the liability of the board of a joint-stock company apply to the chairman, manager or board of directors of a simplified joint-stock company, as the case may be.
Official text (Arabic)
This article has not been amended since the law was issued.
تسري الأحكام الخاصة بمسؤولية مجلس إدارة شركة المساهمة على رئيس شركة المساهمة المبسطة أو مديرها أو مجلس إدارتها بحسب الأحوال.
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 143 explained in plain English
This article settles the question of the liability of those who manage a simplified joint-stock company by reference to other provisions.
Content of the rule: the provisions on the liability of the board of directors of a joint-stock company apply to whoever manages the simplified company, as the case may be:
- the company's chairman, or
- its manager, or
- its board of directors.
Why this rule? Article 142 gives the simplified company freedom to choose the form of its management, and gives management the widest powers to manage the company. This article ensures that this flexibility does not become a reason for lighter accountability: whatever form the shareholders choose, whoever manages the company is subject to the same provisions that apply to the board of a joint-stock company.
What the article does not state: it does not set out the content of the provisions on the liability of the board of a joint-stock company, such as the grounds of liability and how a claim is brought, but refers to them. To learn the details of the liability, those provisions must be consulted.
In the same context, Article 144 makes the rule of Article 72 of the law apply to the chairman, manager or board of directors of the simplified company. Anyone who believes the management of the company has harmed them or the company is advised to consult a lawyer specializing in companies and commercial cases.
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 143 of the Saudi Companies Law
Is the manager of a simplified joint-stock company liable in the same way as the board of a joint-stock company?
Yes. The provisions on the liability of the board of directors of a joint-stock company apply to the chairman, manager or board of directors of the simplified company, as the case may be.
Where can I find the details of this liability?
The article refers to the provisions on the liability of the board of a joint-stock company and does not set them out, so those provisions must be consulted.
More articles on Simplified Joint Stock Company
- Article 138
The article provides that the joint-stock company provisions apply to the simplified joint-stock company where there is no special provision, except for listed articles, and gives its shareholders freedom to organize its structure in the articles of association.
1- تسري على شركة المساهمة المبسطة فيما لم يرد به نص خاص في هذا الباب، وبما يتفق مع طبيعتها، أحكام شركة المساهمة عدا المواد: (الحادية والستين)، و(الثالثة والستين
- Article 139
The article requires the articles of association to state the issued and paid-up capital of a simplified joint-stock company, allows an authorized capital, and does not apply to it the minimum capital set for a joint-stock company.
1- يحدد في نظام الشركة الأساس مقدار رأس مالها المصدر وقيمة المدفوع منه، ويجوز أن يُنص فيه على أن يكون لها رأس مال مصرح به. 2- لا يسري متطلب الحد الأدنى لرأس الم
- Article 140
The article sets out what the articles of association of a simplified joint-stock company must contain and the documents attached to the formation application.
1- يجب أن يشتمل النظام الأساس لشركة المساهمة المبسطة بصفة خاصة على البيانات الآتية: أ- اسم الشركة. ب- المركز الرئيس للشركة. ج- غرض الشركة. د- رأس مال الشركة الم
- Article 141
The article exempts in-kind contributions in a simplified joint-stock company from accredited valuation if they do not exceed half of the capital, requires it if they do, and makes founders or shareholders liable if valuation is not done or is departed from.
1- إذا قدمت حصص عينية عند تأسيس الشركة أو عند زيادة رأس مالها لا يتجاوز مجموع قيمتها (نصف) رأس مال الشركة، فلا يجب تقييمها من مقيم معتمد، ما لم يتفق المؤسسون أو
- Article 142
The article leaves the management of a simplified joint-stock company to its articles of association, gives management the widest powers, and binds the company by acts done in its name even beyond its authority, except against bad-faith dealers or those who know of the excess.
1- تحدد طريقة إدارة شركة المساهمة المبسطة في نظامها الأساس، ويجوز أن يتولى إدارتها رئيس أو مدير أو أكثر أو مجلس إدارة أو غير ذلك. ويُبين في نظام الشركة الأساس ط
- Article 144
The article makes the rule of Article 72 of the Companies Law apply to the chairman, manager or board of directors of a simplified joint-stock company, as the case may be.
يسري حكم المادة (الثانية والسبعين) من النظام على رئيس شركة المساهمة المبسطة أو مديرها أو مجلس إدارتها بحسب الأحوال.
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.