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Article 90 of the Saudi Companies Law

المادة 90 من نظام الشركات · الفرع الثاني: جمعيات المساهمين

The article regulates calling general and special assemblies, obliges the board to call within 30 days at the request of the auditor or shareholders holding 10%, and allows the competent authority to call in specified cases.

Official text (Arabic)

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

1- تنعقد الجمعيات العامة والخاصة بدعوة من مجلس الإدارة، وفقًا للأوضاع المنصوص عليها في نظام الشركة الأساس. وعلى مجلس الإدارة أن يدعو الجمعية العامة العادية للانعقاد خلال (ثلاثين) يومًا من تاريخ طلب مراجع الحسابات أو مساهم أو أكثر يمثلون (عشرة في المائة) من أسهم الشركة التي لها حقوق تصويت على الأقل، ويجوز لمراجع الحسابات دعوة الجمعية العامة العادية إلى الانعقاد إذا لم يوجه المجلس الدعوة خلال (ثلاثين) يومًا من تاريخ طلب مراجع الحسابات.

2- يجب أن يبين الطلب المشار إليه في الفقرة (1) من هذه المادة البنود المطلوب أن يصوت عليها المساهمون.

3- يجوز بقرار من الجهة المختصة دعوة الجمعية العامة العادية إلى الانعقاد في الحالات الآتية:

أ- إذا انقضت المدة المحددة لانعقاد الجمعية العامة العادية الواردة في الفقرة (1) من المادة (الثامنة والثمانين) من النظام دون انعقادها.

ب- إذا تبين وجود مخالفات لأحكام النظام أو نظام الشركة الأساس، أو وقوع خلل في إدارة الشركة، بما في ذلك نقص عدد أعضاء مجلس الإدارة عن الحد الأدنى لصحة انعقاده.

ج- إذا لم يوجه المجلس الدعوة إلى انعقاد الجمعية العامة العادية خلال المدة المحددة في الفقرة (1) من هذه المادة من تاريخ طلب مراجع الحسابات أو مساهم أو أكثر يمثلون (عشرة في المائة) من أسهم الشركة التي لها حقوق تصويت على الأقل.

وللجهة المختصة اتخاذ الإجراءات اللازمة لعقد الجمعية العامة العادية، ولها أن تترأس اجتماع تلك الجمعية في حال تعذر رئاسته وفقًا لحكم الفقرة (1) من المادة (الرابعة والثمانين) من النظام.

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 90 explained in plain English

This article sets who calls the general and special assemblies of a joint stock company and what happens if the board does not call them.

1- The rule and the request:

  • General and special assemblies are held on the call of the board of directors in accordance with the procedures set out in the articles of association.
  • The board must call the ordinary assembly within (30) days of the date of a request from the auditor or from one or more shareholders representing at least (10%) of the shares with voting rights.
  • If the board does not issue the call within 30 days of the auditor's request, the auditor himself may call the ordinary assembly.

2- Content of the request: It must state the items the shareholders are asked to vote on.

3- A call by the competent authority: It may, by a decision of its own, call the ordinary assembly in the following cases:

  • If the period set for holding the ordinary assembly in paragraph 1 of Article 88 has passed without it being held.
  • If violations of the Law or the articles of association, or a defect in the management of the company, become apparent, including the number of board members falling below the minimum needed for a valid meeting.
  • If the board does not issue the call within 30 days of the request of the auditor or of the shareholders representing 10%.

The competent authority may take the steps needed to hold the assembly, and may chair its meeting if it cannot be chaired in accordance with paragraph 1 of Article 84.

After this comes Article 91, which requires the call to be issued at least 21 days before the date in accordance with the regulations' controls and sets what the call contains. It is preceded by Article 89 on special assemblies for classes of shareholders. To gather the 10% and submit a valid request, it is advisable to consult a lawyer specialized in companies.

Practical example

A number of shareholders of a joint stock company in Jeddah who together own 12% of the shares with voting rights asked the board in writing to call the ordinary general assembly to remove two members, stating the items to be voted on. Thirty days passed without a call, so the competent authority may, by a decision of its own, call the assembly to convene.

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 90 of the Saudi Companies Law

Do shareholders have the right to ask for the general assembly to be held?

Yes, if one or more shareholders representing at least 10% of the shares with voting rights request it, and the board must issue the call within 30 days of the request.

What if the board refuses to call the general assembly?

If the board does not call within 30 days of the request of the auditor or of the shareholders holding 10%, the competent authority may call the assembly by a decision of its own, and the auditor may also call it if he is the one who made the request.

What must the request to hold the assembly contain?

It must state the items the shareholders are asked to vote on.

When does the competent authority step in to call the assembly?

If the period set for holding the ordinary assembly has passed without it being held, or violations or a defect in management become apparent, or the board does not issue the call within 30 days of the request.

Articles this article refers to

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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.