Article 168 of the Saudi Companies Law
المادة 168 من نظام الشركات · الفصل الثالث: إدارة الشركة ذات المسؤولية المحدودة
The article sets out the items that must be on the agenda of the annual meeting of the partners' general assembly, including the financial statements, the manager's and auditor's reports and profit distribution.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن يشتمل جدول أعمال الجمعية العامة للشركاء في اجتماعها السنوي على البنود الآتية:
أ- الاطلاع على تقرير مدير الشركة عن نشاط الشركة ومركزها المالي للسنة المالية المنقضية.
ب- الاطلاع على القوائم المالية للسنة المالية المنقضية ومناقشتها.
ج- مناقشة تقرير مراجع الحسابات للسنة المالية المنقضية -إن وجد- واتخاذ قرار بشأنه.
د- البت في اقتراح مدير الشركة بشأن توزيع الأرباح إن وجدت.
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 168 explained in plain English
This article sets a minimum for what the agenda of the partners' general assembly at its annual meeting must include, which is four items:
- Reviewing the company manager's report on its activity and financial position for the past financial year.
- Reviewing and discussing the financial statements for the past year.
- Discussing the auditor's report for the past year, if there is one, and taking a decision on it.
- Deciding on the manager's proposal on distributing profits, if any.
The word "must" means these items are required at the annual meeting and may not be omitted. The aim is for the partners to exercise their oversight of management at least once every year.
This article is linked to Article 167, which requires the manager to prepare these documents, place them at the auditor's disposal at least 45 days before the annual meeting, and provide the partners with them at least 21 days before it. Article 169 also provides that the assembly does not deliberate on matters outside the agenda unless facts arise during the meeting that require it, and that a partner may request that a particular matter be included.
If an annual meeting is held without these items, a partner can consult a lawyer who specializes in companies and commercial disputes to learn their rights.
Practical example
The manager of a company in Makkah prepared an agenda for the annual meeting that included only discussing the expansion plan. He must add the four items: his activity report, the financial statements, the auditor's report, and the proposal to distribute profits, because the article requires them to be included.
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 168 of the Saudi Companies Law
What items are mandatory on the agenda of the annual general assembly?
The manager's report on activity and financial position, reviewing and discussing the financial statements, the auditor's report if any, and deciding on the proposal to distribute profits if any.
Do the partners take a decision on the auditor's report?
Yes. The agenda includes discussing the auditor's report, if there is one, and taking a decision on it.
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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.