Article 84 of the Saudi Companies Law
المادة 84 من نظام الشركات · الفرع الثاني: جمعيات المساهمين
The article sets who chairs a shareholders' general assembly meeting, guarantees each shareholder the right to attend or to appoint a proxy who is not a board member, and allows meeting and voting by modern technology.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يرأس اجتماع الجمعية العامة للمساهمين رئيس مجلس الإدارة أو نائبه عند غيابه، أو من ينتدبه مجلس الإدارة من أعضائه عند غيابهما، وفي حال تعذر ذلك يرأس الجمعية العامة من ينتدبه المساهمون من أعضاء المجلس أو من غيرهم عن طريق التصويت.
2- لكل مساهم حق حضور اجتماع الجمعية العامة ولو نص نظام الشركة الأساس على غير ذلك، وله في ذلك أن يوكل عنه شخصًا آخر من غير أعضاء مجلس الإدارة.
3- يجوز عقد اجتماع الجمعية العامة واشتراك المساهم في المداولات والتصويت على القرارات بوساطة وسائل التقنية الحديثة.
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 84 explained in plain English
This article regulates three matters in the general assembly meetings of a joint stock company's shareholders.
1- Chairing the meeting (in order):
- The chairman of the board.
- His vice chairman in his absence.
- Someone the board appoints from among its members in their absence.
- If that is not possible, someone the shareholders appoint, from the board members or others, by voting.
2- The right to attend:
- Every shareholder has the right to attend the general assembly meeting even if the articles of association provide otherwise; the articles of association may not deprive any shareholder of attending.
- A shareholder may appoint another person to act for him, provided that person is not a member of the board of directors.
3- Modern technology: The meeting may be held, and a shareholder may take part in the deliberations and vote on resolutions, by means of modern technology.
The ban on appointing board members as proxies is logical, because the general assembly is the body that oversees the board and holds it to account, so it would not be appropriate for its members to vote with the shareholders' votes.
After this article comes Article 85, which sets the powers of the extraordinary general assembly, including amending the articles of association while preventing a shareholder from being deprived of his basic rights, among them attending shareholders' assemblies and voting on their resolutions. Anyone who has been prevented from attending the assembly or voting should consult a lawyer specialized in companies.
Practical example
Hind owns shares in a joint stock company in Dammam and could not attend the general assembly because she was traveling. She appointed her brother, who is not a member of the board, to attend and vote for her, which is permitted. Had the company offered attendance through modern technology, she could have taken part and voted herself remotely.
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 84 of the Saudi Companies Law
May a shareholder be prevented from attending the general assembly?
No. Every shareholder has the right to attend the general assembly meeting even if the articles of association provide otherwise.
May I appoint a board member to attend the general assembly for me?
No. You may appoint another person, provided he is not a member of the board of directors.
Who chairs the shareholders' general assembly?
The chairman of the board, or his vice chairman in his absence, or someone the board appoints from among its members in their absence, and if that is not possible, someone the shareholders appoint by voting.
Can voting in the general assembly be done electronically?
Yes. The meeting may be held, and shareholders may take part in the deliberations and vote, by means of modern technology.
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- Article 58
تعرّف المادة شركة المساهمة بأنها شركة يؤسسها شخص أو أكثر، رأس مالها مقسم إلى أسهم قابلة للتداول، تُسأل وحدها عن ديونها، وتقتصر مسؤولية المساهم على قيمة أسهمه.
شركة المساهمة: هي شركة يؤسسها شخص واحد أو أكثر، من ذوي الصفة الطبيعية أو الاعتبارية، ويكون رأس مالها مقسمًا إلى أسهم قابلة للتداول، وتكون الشركة وحدها مسؤولة عن
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توجب المادة ألا يقل رأس مال شركة المساهمة المصدر عن خمسمائة ألف ريال، وألا يقل المدفوع منه عند التأسيس عن الربع.
يجب ألا يقلّ رأس مال شركة المساهمة المصدر عن (خمسمائة ألف) ريال، ويجب ألا يقلّ المدفوع منه عند التأسيس عن (الربع).
- Article 60
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1- يكون لشركة المساهمة رأس مال مصدر يمثل الأسهم المكتتب بها، ويجوز أن يحدد نظام الشركة الأساس رأس مال مصرحًا به. 2- يجوز بقرار من مجلس إدارة الشركة زيادة رأس ال
- Article 61
The article lists what the articles of association of a joint stock company must contain and the documents attached to them when applying to incorporate the company.
1- يجب أن يشتمل النظام الأساس لشركة المساهمة بصفة خاصة على البيانات الآتية: أ- اسم الشركة. ب- المركز الرئيس للشركة. ج- غرض الشركة. د- رأس مال الشركة المصرح به -
- Article 62
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إذا لم يقصر المؤسسون خلال مرحلة التأسيس الاكتتاب بجميع الأسهم على أنفسهم، وجب عليهم طرح الأسهم التي لم يكتتبوا بها للاكتتاب وفقًا لنظام السوق المالية.
- Article 63
The article gives the Ministry and the Authority the power to set the controls, procedures, documents and approvals for incorporating a joint stock company whose shares are offered for public subscription during incorporation or which is listed on the capital market.
للوزارة والهيئة وضع الضوابط والإجراءات وتحديد الوثائق والموافقات اللازمة لتأسيس شركة مساهمة تطرح أسهمها للاكتتاب العام خلال مرحلة التأسيس أو تدرج في السوق المال
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.