Article 145 of the Saudi Companies Law
المادة 145 من نظام الشركات · الفصل الرابع: المساهمون
The article leaves it to the articles of association of a simplified joint-stock company to set the matters for shareholder decision, the quorum and unanimity, while requiring that certain core decisions, such as capital increase, dissolution and profit distribution, be taken by the shareholders.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يُحدد في النظام الأساس لشركة المساهمة المبسطة المسائل التي يجب عرضها على المساهمين لاتخاذ قرار بشأنها، وذلك بالشكل والشروط المحددة في النظام المذكور. ومع ذلك، يجب أن تتخذ من المساهمين القرارات الداخلة في اختصاصات الجمعية العامة العادية أو غير العادية لشركة المساهمة فيما يتعلق بزيادة رأس المال أو تخفيضه أو تحول الشركة إلى شكل آخر أو اندماجها أو تقسيمها أو حلها أو تعيين مراجع الحسابات أو مناقشة القوائم المالية أو توزيع الأرباح أو تعديل نظام الشركة الأساس.
2- يُحدد في نظام الشركة الأساس النصاب اللازم لصحة اجتماعات المساهمين وصدور قراراتها.
3- يجوز أن يُحدد في نظام الشركة الأساس أنصبة مختلفة لمسائل معينة عند عرضها على المساهمين واتخاذ القرار بشأنها.
4- يُحدد في نظام الشركة الأساس المسائل التي يتعين لإصدار قرار بشأنها موافقة المساهمين بالإجماع.
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 145 explained in plain English
This article governs shareholders' decisions in the simplified joint-stock company, combining freedom with a minimum of safeguards.
1- Matters put to the shareholders
The articles of association set the matters that are put to the shareholders and the form and conditions of doing so. However, the shareholders must take the decisions that fall within the competence of the ordinary or extraordinary general assembly of a joint-stock company on:
- Increasing or reducing capital.
- The company's conversion into another form, its merger, its division, or its dissolution.
- Appointing the auditor.
- Discussing the financial statements.
- Distributing profits.
- Amending the company's articles of association.
So the articles of association may not transfer these decisions to management.
2- Quorum
- The articles of association set the quorum required for meetings to be valid and decisions to be issued.
- They may set different quorums for certain matters.
3- Unanimity
The articles of association specify the matters that require the unanimous approval of the shareholders.
The article does not itself set a particular quorum but leaves it to the articles of association. Article 146 refers to paragraph 1 of this article in setting a shareholder's right to information and documents before the meeting that considers these matters. To draft quorum and unanimity provisions in a way that protects the partners' interests, it is advisable to consult a lawyer specializing in companies.
Practical example
A simplified joint-stock company in Khobar is owned by four partners. Its articles of association provide that ordinary decisions are issued by a majority of the shares, and that admitting a new partner requires unanimity. When the manager wanted to increase the capital, he could not decide that alone; he put the matter to the shareholders, because it is one of the decisions that must be taken by them.
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 145 of the Saudi Companies Law
Which decisions must the shareholders take in a simplified company?
Increasing or reducing capital; the company's conversion, merger, division or dissolution; appointing the auditor; discussing the financial statements; distributing profits; and amending the articles of association.
Who sets the quorum for shareholders' meetings?
The company's articles of association, which may set different quorums for certain matters.
Are there decisions that require unanimity?
The articles of association specify the matters on which a decision requires the unanimous approval of the shareholders.
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.