Article 144 of the Saudi Companies Law
المادة 144 من نظام الشركات · الفصل الثالث: إدارة شركة المساهمة المبسطة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يسري حكم المادة (الثانية والسبعين) من النظام 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 144 explained in plain English
This article is a referral article titled Providing Loans. It provides that the rule of Article 72 of the Companies Law applies to whoever manages the simplified joint-stock company:
- the company's chairman, or
- its manager, or
- its board of directors, as the case may be.
What does this mean in practice? The text of Article 144 makes its rule applicable to the management of the simplified company whatever form the articles of association choose, whether a chairman, a manager or a board of directors. This article does not state the content of Article 72, so its text must be consulted to learn what it provides on loans, its conditions and its exceptions.
The importance of the referral: a simplified company may be run by a single chairman or manager instead of a board of directors, and this article expressly provides that the rule of Article 72 covers whoever manages in all these forms.
Article 143 goes in the same direction, making the provisions on the liability of the board of a joint-stock company apply to the chairman, manager or board of directors of the simplified company. The management of the simplified company is therefore subject to the controls on the management of a joint-stock company in these two matters despite its flexible form. Anyone considering a financial dealing between the company and its manager is advised to consult a lawyer specializing in companies.
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 144 of the Saudi Companies Law
What is the rule on loans in a simplified joint-stock company?
The article refers to Article 72 of the Companies Law and makes its rule apply to the chairman, manager or board of directors of the simplified company, so the text of Article 72 must be consulted for the details.
Does the rule cover a sole manager or only the board of directors?
It covers the company's chairman, manager or board of directors, as the case may be.
Articles this article refers to
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 143
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.
تسري الأحكام الخاصة بمسؤولية مجلس إدارة شركة المساهمة 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.