Article 219 of the Saudi Companies Law

المادة 219 من نظام الشركات · الباب التاسع: الشركة القابضة والشركة التابعة

The article refers to the regulations to set the provisions needed to implement the part on the holding company and the subsidiary company.

Official text (Arabic)

This article has not been amended since the law was issued.

تحدد اللوائح الأحكام اللازمة لتنفيذ ما ورد في هذا الباب.

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 219 explained in plain English

This is a referral article. It does not set a new substantive rule; it provides that the regulations set the provisions needed to implement what is stated in this part, which is Part Nine on the holding company and the subsidiary company.

In practice, this means the provisions of this part of the Law are the basic rules, while the implementation details are left to the regulations. One example of these basic rules is Article 218: a subsidiary may not own stakes or shares in the holding company, any transaction transferring ownership to it is void, and there is a 12-month period to dispose of what it owned before becoming a subsidiary.

This article does not state the content or details of those regulations. Anyone dealing with a holding or subsidiary company should therefore not rely on the text of the Law alone, but should also consult the regulations issued to implement it to learn the detailed procedures and controls.

Anyone who needs to apply these provisions to an existing group of companies is advised to use a lawyer specializing in company matters who is familiar with both the Law and its regulations.

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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