Article 190 of the Saudi Companies Law
المادة 190 من نظام الشركات · الباب السابع: الشركة غير الربحية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الاعتبارية.
ب- التنازل للغير عن العضوية في الشركة غير الربحية الخاصة.
ج- الإلغاء وفقًا لأحكام عقد تأسيس الشركة أو نظامها الأساس.
د- انتهاء مدة العضوية دون تجديد.
هـ- انقضاء الشركة.
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 190 explained in plain English
This article states when a person's membership in a non-profit company ends, subject to what is provided in the Law and in the company's formation contract or articles of association. The cases of ending are:
- Death if the member is a natural person, or loss of legal personality if the member is an entity or company.
- Assignment of membership to a third party, which applies only to the private non-profit company.
- Cancellation under the provisions of the company's formation contract or articles of association, so cancellation takes place only as those documents provide.
- Expiry of the membership term without renewal, if the membership is for a fixed term.
- Termination of the company itself.
The case of assignment is consistent with Article 188, which makes membership certificates non-tradable and permits, as an exception, a provision allowing a member of a private non-profit company to assign his membership. Besides these cases, Article 191 allows a member to request the end of his own membership, with liability to compensate the company if that results in a breach of his obligations.
Because cancellation and its conditions depend on the company's documents, reviewing the formation contract or articles of association is necessary to know when membership may be cancelled. In a dispute over the cancellation of a membership, it is advisable to consult a lawyer specializing in companies and commercial cases.
Practical example
Mohammed is a member of a non-profit company in Riyadh, and under its articles of association his membership was for three years. The term ended and he did not renew it, so his membership ends. As for his colleague, whose company documents provide for cancelling the membership of anyone who does not pay fees, his membership may be cancelled under those provisions.
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 190 of the Saudi Companies Law
When does membership in a non-profit company end?
On death or loss of legal personality, on assignment to a third party in a private non-profit company, on cancellation under the company's documents, on expiry of its term without renewal, or on termination of the company.
Can the company cancel a member's membership?
Yes. Cancellation is permitted under the provisions of the company's formation contract or articles of association.
Can membership in a public non-profit company be assigned?
The article provides for assignment to a third party as a ground for ending membership in the private 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 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 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
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.