Article 149 of the Saudi Companies Law
المادة 149 من نظام الشركات · الفصل الرابع: المساهمون
The article allows, if the articles of association so provide, the shareholders' decisions of a simplified joint-stock company to be issued by circulation without a meeting, explains how the proposed decision is sent, and leaves the quorum to the articles of association.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز أن يُنص في نظام الشركة الأساس على إصدار قرار المساهمين بعرضه عليهم بالتمرير دون الحاجة إلى اجتماعهم. وفي هذه الحالة، يرسل رئيس الشركة أو مديرها أو مجلس إدارتها بحسب الأحوال، القرار المقترح والوثائق ذات العلاقة به إلى جميع المساهمين، مع بيان ما يتعين على المساهم اتباعه للموافقة عليه والتاريخ الذي يتعين فيه صدوره.
2- ما لم ينص نظام الشركة الأساس على وسيلة إبلاغ أخرى، يجوز أن يُرسل القرار المقترح وما يتعلق به من وثائق بأي من الوسائل الآتية:
أ- إرسالها إلى المساهمين بخطابات مسجلة.
ب- التسليم شخصيًّا إلى المساهمين أو من ينوب عنهم نظامًا.
ج- إرسالها بالبريد الإلكتروني أو أي من وسائل التقنية الحديثة.
3- يحدد نظام الشركة الأساس النصاب اللازم لصحة إصدار قرارات المساهمين بالتمرير.
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 149 explained in plain English
A decision by circulation means that the shareholders approve a decision without meeting, by having it put to them so that they declare their approval. This article governs it in the simplified joint-stock company:
1- The condition and procedure
- The articles of association must provide that decisions may be issued by circulation.
- The company's chairman, manager or board of directors sends the proposed decision and the relevant documents to all shareholders.
- Together with a statement of what the shareholder must do to approve, and the date by which the decision must be issued.
2- Means of sending
Unless the articles of association provide another means, it may be sent by any of:
- Registered letters.
- Delivery in person to the shareholder or their legally authorized representative.
- Email or any modern technological means.
3- Quorum
The articles of association set the quorum required for decisions by circulation to be valid; the article does not itself set a quorum.
This method suits small and start-up companies whose shareholders are hard to bring together. Article 148 requires decisions issued by circulation to be recorded in minutes written in a special register signed by the company's chairman, manager or board of directors. To draft circulation provisions in the articles of association, it is advisable to consult a lawyer specializing in companies.
Practical example
The shareholders of a simplified joint-stock company in Jeddah live in different cities, and its articles of association allow decisions by circulation. The manager emailed all the shareholders a proposed decision to appoint an auditor, with the related documents, and explained how to give approval and the deadline for it. The decision was issued once the quorum set in the articles of association was met, without holding a meeting.
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 149 of the Saudi Companies Law
Can shareholders' decisions be issued without a meeting?
Yes, if the articles of association of the simplified joint-stock company provide for issuing decisions by circulation.
How is the proposed decision sent to the shareholders?
By registered letters, by delivery in person to the shareholder or their representative, or by email or modern technological means, unless the articles of association provide another means.
What quorum is required for a decision by circulation?
The company's articles of association set it.
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.