Article 148 of the Saudi Companies Law
المادة 148 من نظام الشركات · الفصل الرابع: المساهمون
The article requires the deliberations and decisions of a simplified joint-stock company's shareholders to be recorded in minutes in a special register, and the decisions set by the regulations to be registered in the commercial register within 15 days.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تثبت مداولات اجتماع المساهمين وقراراتهم أو القرارات التي تصدر بالتمرير؛ في محاضر تدون في سجل خاص يوقعه رئيس الشركة أو مديرها أو مجلس إدارتها بحسب الأحوال. وللشركة استخدام وسائل التقنية الحديثة لإثبات وتدوين المداولات والقرارات.
2- على رئيس الشركة أو مديرها أو مجلس إدارتها -بحسب الأحوال- أن يقيد لدى السجل التجاري قرارات المساهمين التي تحددها اللوائح خلال (خمسة عشر) يومًا من تاريخ صدورها.
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 148 explained in plain English
This article ensures the documentation of shareholders' decisions in the simplified joint-stock company and the announcement of those that require it.
1- The minutes
- The deliberations and decisions of the shareholders' meeting, as well as decisions issued by circulation, are recorded in minutes.
- The minutes are written in a special register signed by the company's chairman, manager or board of directors, as the case may be.
- The company may use modern technological means to record and write down the deliberations and decisions.
2- Registration in the commercial register
- The chairman, manager or board of directors must register with the commercial register the shareholders' decisions that the regulations specify.
- The period is 15 days from the date the decision is issued.
The article does not itself specify which decisions must be registered but refers this to the regulations; not every decision is necessarily required to be registered.
This article is linked to Article 149, which allows shareholders' decisions to be issued by circulation without a meeting if the articles of association so provide; this article also requires such decisions to be recorded in the minutes. To find out which decisions must be registered in a particular case, it is advisable to consult a lawyer specializing in companies.
Practical example
The shareholders of a simplified joint-stock company in Riyadh held a remote meeting and decided several matters. The manager wrote the deliberations and decisions in the company's electronic minutes register and signed it, and then registered with the commercial register, within 15 days, the decisions that the regulations specify.
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 148 of the Saudi Companies Law
Where are the decisions of a simplified company's shareholders recorded?
In minutes written in a special register signed by the company's chairman, manager or board of directors, and modern technological means may be used for this.
Within what period must shareholders' decisions be registered in the commercial register?
Within 15 days of the date they are issued, for the decisions that the regulations specify.
Are decisions issued by circulation recorded in the minutes?
Yes. Decisions issued by circulation are also recorded in the minutes.
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.