Article 167 of the Saudi Companies Law
المادة 167 من نظام الشركات · الفصل الثالث: إدارة الشركة ذات المسؤولية المحدودة
The article requires the manager to prepare the financial statements and an annual activity report, make them available to the auditor 45 days before the annual meeting, and give them to the partners 21 days before it.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يعد مدير الشركة عن كل سنة مالية القوائم المالية للشركة وتقريرًا عن نشاطها ومركزها المالي عن السنة المالية المنقضية واقتراحاته في شأن توزيع الأرباح، إن وجدت. ويضع المدير هذه الوثائق تحت تصرف مراجع الحسابات -إن وجد- قبل الموعد المحدد لانعقاد الجمعية العامة في اجتماعها السنوي (بخمسة وأربعين) يومًا على الأقل.
2- على مدير الشركة أن يزود الشركاء بالقوائم المالية للشركة وتقرير عن نشاطها، وتقرير مراجع الحسابات إن وجد، سواء بوسائل التقنية الحديثة أو بأي وسيلة أخرى ينص عليها عقد تأسيس الشركة، وذلك قبل الموعد المحدد لانعقاد الجمعية العامة السنوي (بواحد وعشرين) يومًا على الأقل، وعليه أيضًا إيداع هذه الوثائق وفقًا لما تحدده اللوائح.
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 167 explained in plain English
This article sets out the obligations of the manager of a limited liability company regarding the annual accounts:
- Preparation: for each financial year the manager prepares the company's financial statements, a report on its activity and financial position for the past year, and their proposals on distributing profits if any.
- The auditor: the manager places these documents at the auditor's disposal, if there is one, at least 45 days before the date of the general assembly's annual meeting.
- The partners: the manager provides the partners with the financial statements, the activity report and the auditor's report if any, by modern technological means or any means provided for in the memorandum of association, at least 21 days before the annual meeting.
- Filing: the manager must also file these documents as the regulations specify; the text does not state where they are filed or the procedures.
The purpose of these periods is for each partner to have enough time to study the financial position before voting at the annual meeting.
Article 168 shows that the agenda of the annual meeting must include reviewing and discussing the manager's report and the financial statements, discussing the auditor's report, and deciding on the proposal to distribute profits. Article 166 regulates how partners' decisions are made. A partner who has not received these documents on time may consult a lawyer who specializes in companies and commercial disputes.
Practical example
April 30 was set as the date of the annual general assembly meeting of a company in Khobar. The manager must place the financial statements and his report at the auditor's disposal at least 45 days before the date, and send them with the auditor's report to the partners at least 21 days before the date.
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 167 of the Saudi Companies Law
When must the manager provide the partners with the financial statements?
At least 21 days before the date set for the annual general assembly.
What documents does the company's manager prepare each year?
The financial statements, a report on the company's activity and financial position for the past year, and their proposals on distributing profits if any.
When are the documents handed to the auditor?
At least 45 days before the date of the annual meeting, if there is an auditor.
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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.