Article 189 of the Saudi Companies Law
المادة 189 من نظام الشركات · الباب السابع: الشركة غير الربحية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 على سجلات الشركة ووثائقها.
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 189 explained in plain English
After Article 188 allowed members of a non-profit company to be divided into different classes, this article sets two basic rules:
1- Equality within one class: each membership class gives rise to equal rights and obligations. The classes may differ from one another, but members of the same class are equal in rights and obligations, so one member is not favored over another in the same class.
2- The rights of membership are vested: a member holds all the rights connected with his membership, including, as the article states:
- The right to take part in the deliberations of the members' assemblies.
- The right to inspect the company's records and documents.
The phrase "including" means these two rights are mentioned as examples, so the member has all the rights connected with his membership.
The importance of the right of inspection is clear in light of Article 188, which allows the competence of the members' assembly to include oversight of the manager or board of directors and verifying that profits are spent on the company's fields. The end of membership is regulated by Article 190. If a member is denied his rights, it is advisable to consult a lawyer specializing in companies and commercial cases.
Practical example
Sarah is a member in the supporting-members class of a non-profit company in Al Khobar, and she asked to inspect the company's records to make sure profits are spent on the specified field. She has this right under the article, and she may also take part in the members' assembly's deliberations, with the same rights as the other members of her class.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
Commercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Albrahim Law Firm
- Labour & Employment Law
- Civil Litigation & Compensation
- Labour & Employment Law
- Criminal Law
Frequently asked questions about Article 189 of the Saudi Companies Law
Does a member of a non-profit company have the right to inspect its records?
Yes. A member holds all the rights connected with his membership, including the right to inspect the company's records and documents.
Can some members have more rights than others?
The classes may differ, but each class gives rise to equal rights and obligations for its members.
Does a member have the right to attend and take part in members' assemblies?
Yes. Taking part in the deliberations of the members' assemblies is one of the member's rights.
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 187
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.
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 هذ
- 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 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.