Article 191 of the Saudi Companies Law
المادة 191 من نظام الشركات · الباب السابع: الشركة غير الربحية
The article allows a member of a non-profit company to request the end of his membership, provided he compensates the company if the ending results in a breach of his obligations toward it.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز للعضو طلب إنهاء عضويته على أن يكون مسؤولًا عن تعويض الشركة في حال ترتب على الإنهاء إخلال بالتزاماته تجاهها.
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 191 explained in plain English
This article establishes the right of a member of a non-profit company to leave it of his own will, and balances that with protection of the company.
1- The member's right: a member may request the end of his membership. Membership is not a permanent restraint on the member.
2- The member's liability: the member is liable to compensate the company if ending the membership results in a breach of his obligations toward it. If the ending does not result in a breach of any obligation, the article does not impose compensation on him.
Examples of obligations that the articles of association may place on a member are those Article 188 permitted: annual fees or cash or in-kind contributions, or a requirement to provide work or a service to the company in order to obtain its membership. If the member committed to something of this kind and then ended his membership in a way that breached it, he bears the compensation.
The article does not specify how the request is submitted, the amount of compensation, or how it is assessed, so the company's documents are referred to for the procedures.
This case differs from the cases of ending membership in Article 190, such as death, expiry of the term without renewal and termination of the company, where membership ends without a request from the member. If a member has existing obligations toward the company and wishes to leave, it is advisable to consult a lawyer specializing in companies and commercial cases to assess the effect.
Practical example
Noura is a member of a non-profit company in Jeddah, and she committed to provide a free training service to the company for one year in return for her membership. After four months she requested the end of her membership. She is entitled to do so, but if her withdrawal results in a breach of her obligation toward the company, she is liable to compensate the company.
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 191 of the Saudi Companies Law
Does a member have the right to withdraw from a non-profit company?
Yes. A member may request the end of his membership.
Do I pay compensation if I end my membership in a non-profit company?
You are liable for compensation if ending the membership results in a breach of your obligations toward the company.
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.