Article 187 of the Saudi Companies Law
المادة 187 من نظام الشركات · الباب السابع: الشركة غير الربحية
The article requires the Ministry's approval for an amendment to a public non-profit company's articles of association to take effect if it covers rules on disposing of assets, the board's powers, or the company's outlets and fields.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا اشتمل قرار تعديل النظام الأساس للشركة غير الربحية العامة على تعديل أحكام التصرف في الأصول أو تعديل صلاحيات مجلس الإدارة أو مصارف ومجالات الشركة، فلا يكون هذا التعديل نافذًا إلا بعد الحصول على موافقة الوزارة.
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 187 explained in plain English
This article places additional oversight on amending the articles of association of the public non-profit company, to ensure that the essential provisions on which it was founded are not changed.
Amendments that need the Ministry's approval:
- Amending the rules on disposing of assets.
- Amending the powers of the board of directors.
- Amending the company's outlets and fields.
Effect: if the amendment resolution includes any of these matters, the amendment is not effective until the Ministry's approval has been obtained. In other words, the resolution of the competent body inside the company is not enough on its own for it to take effect.
Scope of the article: the rule applies to the public non-profit company only; the article does not deal with the private non-profit company. Amendments to the articles of association that do not touch these three matters are also not covered by this article.
This article is connected to Article 186, which requires, as a condition for approving the formation of a public non-profit company, that its articles of association state the public non-profit outlets and fields. This article protects those fields from being changed without oversight. Before preparing any amendment of this kind, it is advisable to consult a lawyer specializing in companies and commercial cases.
Practical example
A public non-profit company in Madinah spends its profits on educating orphans, and its shareholders decided to amend its articles of association to add the field of health care and to widen the board's powers to sell real estate. Because the amendment touches the company's fields, the board's powers and the disposal of assets, it does not take effect until the Ministry approves it.
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 187 of the Saudi Companies Law
Can the fields of a public non-profit company be amended without the Ministry's approval?
No. An amendment to the outlets and fields of a public non-profit company is not effective until the Ministry's approval has been obtained.
Which amendments to a public non-profit company need the Ministry's approval?
Amendments that cover the rules on disposing of assets, the powers of the board of directors, or the company's outlets and fields.
Does this rule cover the private non-profit company?
The text of the article applies to the public non-profit company only.
More articles on Non-Profit Company
- Article 2
تعرّف المادة الشركة بأنها كيان قانوني يقوم على مساهمة شخصين أو أكثر في مشروع ربحي لاقتسام الربح والخسارة، مع جواز تأسيسها بإرادة شخص واحد وتأسيس شركات غير ربحية.
الشركة كيان قانوني يؤسس وفقًا لأحكام النظام بناء على عقد تأسيس أو نظام أساس يلتزم بمقتضاه شخصان أو أكثر بأن يساهم كل منهم في مشروع يستهدف الربح بتقديم حصة من ما
- Article 185
The article defines public and private non-profit companies, sets the forms they may take, prohibits offering their shares for public subscription, and applies the rules of their form where this chapter is silent.
1- الشركة غير الربحية العامة: هي شركة تتخذ شكل شركة المساهمة وليس لها اتخاذ أي شكل آخر، وتنفق الأرباح المتحققة من ممارسة نشاطها في أي من المصارف والمجالات غير ا
- Article 186
The article requires the public non-profit company's articles of association to state its public non-profit fields, and allows a non-profit company to collect returns and carry on a lawful activity whose profits are spent on those fields.
1- يشترط للموافقة على تأسيس الشركة غير الربحية العامة النص في نظامها الأساس على المصارف والمجالات غير الربحية العامة، ويجوز للشركة غير الربحية الخاصة النص في عق
- Article 188
The article makes every partner or shareholder in a non-profit company a member, lets the formation documents regulate membership classes, powers, fees and certificates, and lets the Ministry regulate aspects of membership.
1- يكون كل شريك أو مساهم في الشركة غير الربحية عضوًا. 2- يجوز أن ينص في عقد تأسيس الشركة غير الربحية أو نظامها الأساس على الآتي: أ- تحديد فئات وشروط وأحكام العض
- Article 189
The article provides that each membership class in a non-profit company gives rise to equal rights and obligations, and that a member holds the rights of his membership, including taking part in assembly deliberations and inspecting records.
ترتب كل فئة من فئات العضوية حقوقًا والتزامات متساوية، وتثبت للعضو جميع الحقوق المتصلة بعضويته بما في ذلك الحق في الاشتراك في مداولات جمعيات الأعضاء، وحق الاطلاع
- Article 190
The article sets out how membership in a non-profit company ends: death or loss of legal personality, assignment in a private company, cancellation, expiry of the term without renewal, and the company's termination.
مع مراعاة ما ورد في النظام وعقد تأسيس الشركة غير الربحية أو نظامها الأساس، تنتهي العضوية في الشركة غير الربحية في الحالات الآتية: أ- الوفاة، أو زوال الشخصية الا
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.