Article 165 of the Saudi Companies Law
المادة 165 من نظام الشركات · الفصل الثالث: إدارة الشركة ذات المسؤولية المحدودة
The article regulates the partners' general assembly in a limited liability company: its composition, annual meeting, who may call it, notice period, recording its decisions and remote meetings.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يكون للشركة ذات المسؤولية المحدودة جمعية عامة تتكون من جميع الشركاء.
2- تنعقد الجمعية العامة للشركاء بدعوة من المدير أو المديرين وفقًا للأوضاع التي يحددها عقد تأسيس الشركة، على أن تنعقد مرة على الأقل في السنة خلال الأشهر (الستة) التالية لنهاية السنة المالية للشركة.
3- يجوز دعوة الجمعية العامة للشركاء في أي وقت بناء على طلب من المديرين أو مراجع الحسابات أو بناء على طلب شريك أو أكثر يمثلون (عشرة في المائة) من رأس المال على الأقل. ويكون توجيه الدعوة إلى جميع الشركاء بخطابات مسجلة أو بوسائل التقنية الحديثة أو بأي وسيلة أخرى ينص عليها عقد التأسيس، وذلك قبل الموعد المحدد لانعقاد الجمعية العامة (بواحد وعشرين) يومًا على الأقل.
4- يجوز للشركاء الذين يمثلون جميع حصص رأس مال الشركة أن يعقدوا جمعية عامة دون مراعاة للأوضاع والمدد المقررة للدعوة.
5- تثبت مداولات الجمعية العامة للشركاء وقراراتها أو قرارات الشركاء بالتمرير في محاضر تدون في سجل خاص تعده الشركة لهذا الغرض. وللشركة استخدام وسائل التقنية الحديثة لإثبات وتدوين المداولات والقرارات.
6- يجوز عقد اجتماعات الجمعية العامة للشركاء واشتراك الشريك في المداولات والتصويت على القرارات؛ بوساطة وسائل التقنية الحديثة.
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 165 explained in plain English
This article regulates the partners' general assembly in a limited liability company, and its main provisions are:
- Composition: the general assembly consists of all the partners.
- The annual meeting: it meets on the call of the manager or managers as the memorandum of association provides, at least once a year within 6 months after the end of the financial year.
- Calling it at any time: it may be called at any time at the request of the managers, the auditor, or one or more partners representing at least 10% of the capital.
- Method and period of notice: the notice is sent to all partners by registered letters, modern technological means or any means provided for in the memorandum of association, at least 21 days before the meeting date.
- The exception: partners representing all of the capital shares may hold a general assembly without observing the formalities and periods for notice.
- Documentation: deliberations and decisions, as well as partners' decisions by circulation, are recorded in minutes entered in a special register, and modern technological means may be used for this.
- Remote meetings: meetings, participation and voting may be held by modern technological means.
Article 166 provides that partners' decisions are made in the general assembly or may be made by circulation, and are valid only with the approval of those representing more than half of the capital unless the memorandum of association requires a greater majority. Article 164 regulates the removal of the manager. To check the validity of a particular notice or meeting, it is possible to consult a lawyer who specializes in companies and commercial disputes.
Practical example
A company in Jeddah's financial year ended on December 31, so its annual general assembly must meet within 6 months after that. The manager wanted to hold the meeting on May 1, so he must send the notice to all partners at least 21 days before, and the partners may attend and vote through a video 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 165 of the Saudi Companies Law
When must the partners' general assembly meet?
At least once a year within the six months after the end of the company's financial year.
Who may ask for the general assembly to be called?
The managers, the auditor, or one or more partners representing at least 10% of the capital.
How much notice must be given before the meeting?
The notice is sent at least 21 days before the set date, unless the partners representing all the shares meet, in which case they may disregard this.
Can the partners meet and vote remotely?
Yes. Meetings, participation in deliberations and voting may be held by modern technological means.
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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.