Article 278 of the Saudi Companies Law
المادة 278 من نظام الشركات · الباب الرابع عشر: أحكام ختامية
The article allows the competent authority to propose rules that encourage companies to engage in social responsibility and the stages of applying them, to be issued by Council of Ministers resolution.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة المختصة اقتراح الضوابط اللازمة لتحفيز الشركات على مباشرة المسؤولية الاجتماعية ومراحل تطبيقها. وتصدر بقرار من مجلس الوزراء.
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 278 explained in plain English
This article deals with corporate social responsibility, meaning companies' contribution to serving society alongside their commercial activity.
The article works in two steps:
- Proposal: the competent authority may propose the rules needed to encourage companies to engage in social responsibility, and the stages of applying it.
- Issuance: these rules are issued by resolution of the Council of Ministers.
Note the following about the wording of the article:
- It speaks of encouraging companies and does not itself oblige companies to carry out specific activities.
- It refers to stages of application, meaning application may be gradual depending on what the rules provide.
- It does not specify the content of the rules or the incentives, but leaves that to what is issued by Council of Ministers resolution.
Related to it are Article 277, which provides for issuing the regulations implementing the law and permits electronic procedures, and Article 279, which refers to the regulations the setting of the fees for the competent authority's services.
To find out whether any issued rules apply to your company, you can consult a lawyer specializing in commercial and company matters.
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 278 of the Saudi Companies Law
Is social responsibility mandatory for companies under the Companies Law?
The article speaks of proposing rules to encourage companies to engage in social responsibility and does not itself provide a specific obligation; the details are in what is issued by Council of Ministers resolution.
Who issues the corporate social responsibility rules?
The competent authority proposes them, and they are issued by Council of Ministers resolution.
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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
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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
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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.