Article 276 of the Saudi Companies Law
المادة 276 من نظام الشركات · الباب الرابع عشر: أحكام ختامية
The article authorizes the competent authority to regulate reporting violations of the Law and the regulations, including setting financial rewards for informants, the controls for paying them and procedures to protect them.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة المختصة تنظيم الإبلاغ عن مخالفات أحكام النظام واللوائح، بما في ذلك تحديد المكافآت المالية للمبلغين، وضوابط صرفها واستحقاقها، والإجراءات التي تسهم في حمايتهم.
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 276 explained in plain English
This article lays the foundation for a system for reporting violations of the provisions of the Companies Law and its regulations, and makes regulating it a power of the competent authority.
According to the text, this regulation includes:
- Regulating the reporting itself of violations of the provisions of the Law and the regulations.
- Setting financial rewards for informants.
- Controls for paying these rewards and for entitlement to them.
- Procedures that contribute to protecting informants.
The article does not specify the amount of the rewards, the conditions for entitlement, the way a report is submitted, or the forms of protection, but leaves all of that to what the competent authority regulates. Anyone who wants to report must therefore refer to what the competent authority issues on this matter.
This article is complemented by other articles in the final provisions, including Article 275, which allows the competent authority to use public or private bodies and assign some of its tasks to them, and Article 277, which provides for issuing the regulations that set out the rules, periods and procedures needed to implement the Law.
Anyone thinking of reporting a violation who wants to understand their position can consult a lawyer specializing in commercial matters and companies.
Practical example
Khaled, an employee of a company in Jeddah, noticed what he sees as a violation of the provisions of the Companies Law in the company's management. This article allows the competent authority to regulate how such violations are reported, which may include a financial reward and procedures to protect him, according to the controls the competent authority sets.
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 276 of the Saudi Companies Law
Is there a reward for reporting company violations?
The article authorizes the competent authority to set financial rewards for informants and the controls for paying them and for entitlement to them, and it does not itself specify the amount.
Does the Companies Law protect those who report violations?
The article allows the competent authority to set procedures that contribute to protecting informants, and the details are left to what that authority regulates.
What violations can be reported?
The article speaks of violations of the provisions of the Companies Law and the regulations.
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.