Article 275 of the Saudi Companies Law
المادة 275 من نظام الشركات · الباب الرابع عشر: أحكام ختامية
The article allows the competent authority to use public or private bodies to perform its tasks under the Law and to assign some of these tasks to them.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة المختصة الاستعانة بالجهات العامة أو الخاصة لأداء المهمات المقررة لها في النظام، ولها إسناد بعضها إلى تلك الجهات.
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 275 explained in plain English
This article gives the competent authority flexibility in performing the tasks the Companies Law assigns to it, through two powers:
- Using bodies: It may use public or private bodies to perform the tasks assigned to it in the Law.
- Assigning: It may assign some of these tasks to those bodies.
Note that the text speaks of assigning "some" of them, not all, so the power concerns part of the tasks. The article also does not specify the tasks that may be assigned or the bodies to which they are assigned; that is left to the competent authority's discretion.
This article is linked to Article 274, which sets out the powers of the competent authority, including the Authority's competence to supervise listed joint stock companies, issue governance regulations and issue implementing controls and decisions. It is also linked to Article 276, which authorizes the competent authority to regulate reporting violations of the Law and the regulations.
For companies, this article means that some services or procedures connected with the Law may be handled by a public or private body at the competent authority's assignment. If in doubt about the status of a body a company deals with in this regard, you can consult a lawyer specializing in commercial matters and companies.
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 275 of the Saudi Companies Law
May the Ministry of Commerce assign its tasks to private bodies?
The article allows the competent authority to use public or private bodies to perform its tasks under the Law and to assign some of these tasks to them.
Can all of the competent authority's tasks be assigned?
The text allows assigning some of the tasks, and it does not mention assigning all of them.
More articles on Penalties under the Companies Law
- Article 240
The article makes a foreign company and those who carried on its activity jointly liable if it operated before completing licensing and commercial register registration or went beyond what it was licensed for.
إذا زاولت الشركة الأجنبية نشاطها وأعمالها قبل استيفائها إجراءات الترخيص، إن وجدت، وقيدها لدى السجل التجاري، أو قامت بأعمال تجاوزت المرخص لها فيها، كانت الشركة و
- Article 260
The article punishes with up to 3 years in prison and a fine of up to SAR 5,000,000, or either, anyone who falsifies a company's financial data, uses its funds and powers against its interests, or a liquidator who abuses his role.
دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب بالسجن مدة لا تزيد على (ثلاث) سنوات وبغرامة لا تزيد على (5,000,000) خمسة ملايين ريال، أو بإحدى هاتين العقوبتين: أ-
- Article 261
The article punishes with up to 1 year in prison and a fine of up to SAR 1,000,000, or either, acts including buying votes, distributing profits in bad faith, disclosing secrets and overstating the value of stakes.
دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب بالسجن مدة لا تزيد على (سنة) وبغرامة لا تزيد على (1,000,000) مليون ريال، أو بإحدى هاتين العقوبتين: أ- كل مراجع للح
- Article 262
The article punishes with a fine of up to SAR 500,000 administrative and regulatory violations, including obstructing assemblies, neglecting records and financial statements, and failing to register in the commercial register.
دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب بغرامة لا تزيد على (500,000) خمسمائة ألف ريال: أ- كل من تسبب في تعطيل دعوة الجمعية العامة للشركاء أو المساهمين أو
- Article 263
The article requires taking into account the seriousness, circumstances and effects of the offense or violation when setting the penalty, and doubles the penalties for offenses under Articles 260 and 261 on repetition within 3 years.
1- يراعى في تحديد العقوبة جسامة الجريمة أو المخالفة، وظروفها، وملابساتها، وآثارها. 2- تضاعف في حالة العود العقوبات المقررة على الجرائم المنصوص عليها في المادتين
- Article 264
The article allows the competent judicial authority to take measures such as a warning, requiring correction and a ban from the board of a listed company, in addition to the penalties of Articles 260 and 261 or instead of them.
1- للجهة القضائية المختصة أن تتخذ بالإضافة إلى العقوبات المقررة في المادتين (الستين بعد المائتين) و(الحادية والستين بعد المائتين) من النظام، أو بدلًا عنها؛ أيًّ
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.