Article 213 of the Saudi Companies Law
المادة 213 من نظام الشركات · الباب الثامن: الشركة المهنية
The article regulates shares or stock that pass to the heirs of a deceased partner or shareholder in a professional company, and the right of an heir licensed to practice the profession to do so through the company.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تسري في شأن الحصص أو الأسهم التي تنتقل من الشركاء أو المساهمين في الشركة المهنية المتوفين إلى ورثتهم؛ الشروط والضوابط والقواعد المشار إليها في الفقرة (4) من المادة (المائتين) من النظام.
2- إذا كان أيّ من الورثة مرخصًا له بممارسة المهنة أو أي من المهن محل نشاط الشركة، فيجوز أن يكون هذا الوريث شريكًا أو مساهمًا ممارسًا لمهنته عن طريق الشركة إذا وافق غالبية الشركاء أو حصل على موافقة الجمعية العامة على ذلك. وإذا لم يوافقوا فيكون الوريث شريكًا أو مساهمًا غير ممارس، ويجوز له في هذه الحالة ممارسة مهنته عن طريق غير الشركة استثناء من حكم المادة (السادسة بعد المائتين) من النظام.
3- استثناء من حكم المادة (الأولى بعد المائتين) من النظام، إذا كان أيّ من الورثة شريكًا أو مساهمًا -ممارسًا للمهنة- في شركة مهنية أخرى تمارس المهنة الحرة ذاتها، فيجوز له تملك الحصص أو الأسهم المورثة له بصفته شريكًا أو مساهمًا غير ممارس.
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 213 explained in plain English
After Article 212 shows that the share of a deceased partner, or the stock of a deceased shareholder, passes to their heirs in certain cases, this article sets the rules that govern those shares once they have passed:
- Paragraph (1): the conditions, rules and requirements referred to in paragraph (4) of Article 200 of the Law apply to the shares or stock passing to the heirs.
- Paragraph (2): if one of the heirs is licensed to practice the profession, or any of the professions that are the subject of the company's activity, they may be a partner or shareholder practicing their profession through the company, provided that the majority of the partners or the general assembly approves. If they do not approve, the heir is a non-practicing partner or shareholder, and may then practice their profession other than through the company, as an exception to the provision of Article 206 of the Law.
- Paragraph (3): if the heir is a partner or shareholder practicing the profession in another professional company practicing the same liberal profession, they may acquire the inherited shares or stock as a non-practicing partner or shareholder, as an exception to the provision of Article 201 of the Law.
In short, inheritance does not automatically give the heir the right to practice the profession within the company; that depends on their being licensed and on the approval of the majority of the partners or the general assembly, failing which they remain a non-practicing owner.
Article 214 deals with a different matter, concerning the interdiction or insolvency of a general partner. To learn the effect of these provisions on a particular case, it is advisable to consult a lawyer who specializes in company matters.
Practical example
Sarah, a licensed lawyer, inherited her father's share in a professional limited liability law firm in Dammam. If the majority of the partners approve, she becomes a practicing partner working through the company, and if they do not approve, she remains a non-practicing partner and may practice law outside the company.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 213 of Companies Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
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
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 213 of the Saudi Companies Law
Can an heir who is licensed practice their profession through the professional company?
Yes, if the majority of the partners or the general assembly approves, failing which they are a non-practicing partner or shareholder.
Can the heir practice their profession outside the company if the partners refuse their joining as a practitioner?
Yes. If they do not approve, the heir is a non-practicing partner and may practice their profession other than through the company, as an exception to the provision of Article 206.
Can a partner in another professional company inherit a share in a company practicing the same profession?
Yes. They may acquire the inherited shares or stock as a non-practicing partner or shareholder, as an exception to the provision of Article 201.
Articles this article refers to
- Article 200
The article sets the ways to form a professional company: between licensed persons, by one person, across several professions or with a non-Saudi professional company, and participation by unlicensed persons under the regulations.
1- للأشخاص المرخص لهم في ممارسة مهنة حرة واحدة أن يؤسسوا فيما بينهم شركة مهنية بأي شكل من الأشكال الواردة في المادة (الرابعة) من النظام. 2- للشخص المرخص له في م
- Article 206
The article bars a partner or shareholder in a professional company not owned by one person from practicing his profession outside it except with the partners' written approval or the general assembly's approval; otherwise his fees belong to the company.
1- لا يجوز للشريك ولا للمساهم في الشركة المهنية ممارسة مهنته الحرة إلا عن طريقها، ما لم تكن مملوكة لشخص واحد. 2- استثناء مما ورد في الفقرة (1) من هذه المادة، يج
- Article 201
The article bars a partner or shareholder who practices the profession in a professional company from taking part in another professional company practicing the same profession, unless the formation contract or articles of association provide for it.
لا يجوز للشريك في شركة مهنية ولا للمساهم فيها، الممارسين لمهنة حرة، المشاركة ولا المساهمة في شركة مهنية أخرى تمارس المهنة الحرة ذاتها، ما لم ينص عقد تأسيس الشرك
More articles on Professional Company
- Article 197
The article defines the professional company as a company formed by one or more persons licensed in one or more liberal professions, or by them together with others, for the purpose of practicing those professions.
الشركة المهنية هي شركة يؤسسها شخص أو أكثر من المرخص لهم نظامًا في ممارسة مهنة حرة واحدة أو أكثر، أو منهم مع غيرهم، ويكون غرضها ممارسة تلك المهن.
- Article 198
The article provides that a professional company takes any of the company forms set out in Article 4 of the Companies Law.
تتخذ الشركة المهنية أيًّا من أشكال الشركات الواردة في المادة (الرابعة) من النظام.
- Article 199
The article applies the rules of its form to the professional company where there is no special provision, and provides that a partner or shareholder in it does not acquire the status of merchant by virtue of the partnership.
1- تسري على الشركة المهنية -فيما لم يرد به نص خاص في هذا الباب- الأحكام الخاصة بشكل الشركة الذي تتخذه، وبما لا يتعارض مع طبيعتها. 2- لا يكتسب الشريك أو المساهم
- Article 200
The article sets the ways to form a professional company: between licensed persons, by one person, across several professions or with a non-Saudi professional company, and participation by unlicensed persons under the regulations.
1- للأشخاص المرخص لهم في ممارسة مهنة حرة واحدة أن يؤسسوا فيما بينهم شركة مهنية بأي شكل من الأشكال الواردة في المادة (الرابعة) من النظام. 2- للشخص المرخص له في م
- Article 201
The article bars a partner or shareholder who practices the profession in a professional company from taking part in another professional company practicing the same profession, unless the formation contract or articles of association provide for it.
لا يجوز للشريك في شركة مهنية ولا للمساهم فيها، الممارسين لمهنة حرة، المشاركة ولا المساهمة في شركة مهنية أخرى تمارس المهنة الحرة ذاتها، ما لم ينص عقد تأسيس الشرك
- Article 202
The article provides that a professional company is formed under the formation procedures prescribed for its form, and that partners may dissolve it only after announcement and written notice to everyone dealing with it, under the regulations.
1- تؤسس الشركة المهنية وفقًا لإجراءات التأسيس المقررة لشكل الشركة. 2- لا يجوز للشركاء ولا للمساهمين في الشركة المهنية حلها إلا بعد الإعلان عن ذلك وإبلاغ جميع ال
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.