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Article 91 of the Saudi Companies Law

المادة 91 من نظام الشركات · الفرع الثاني: جمعيات المساهمين

Article 91 sets when a shareholders' assembly meeting must be called, how and with what content, and lets holders of all voting shares in an unlisted company hold the assembly without call procedures.

Official text (Arabic)

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

1- يكون توجيه الدعوة لانعقاد الجمعية قبل الميعاد المحدد لها (بواحد وعشرين) يومًا على الأقل وفقًا للضوابط التي تحددها اللوائح، مع مراعاة الآتي:

أ- إبلاغ المساهمين بخطابات مسجلة على عناوينهم الواردة في سجل المساهمين، أو الإعلان عن الدعوة من خلال وسائل التقنية الحديثة.

ب- إرسال صورة من الدعوة وجدول الأعمال إلى السجل التجاري، وصورة إلى الهيئة إذا كانت الشركة مدرجة في السوق المالية في تاريخ إعلان الدعوة.

2- يجب أن تتضمن الدعوة إلى اجتماع الجمعية على الأقل، ما يأتي:

أ- بيان صاحب الحق في حضور اجتماع الجمعية وحقه في إنابة من يختاره من غير أعضاء مجلس الإدارة، وبيان حق المساهم في مناقشة الموضوعات المدرجة على جدول أعمال الجمعية وتوجيه الأسئلة وكيفية ممارسة حق التصويت.

ب- مكان عقد الاجتماع، وتاريخه، وموعده.

ج- نوع الجمعية سواء كانت عامة أو خاصة.

د- جدول أعمال الاجتماع متضمنًا البنود المطلوب تصويت المساهمين عليها.

3- يجوز للمساهمين في شركة المساهمة غير المدرجة في السوق المالية الذين يمثلون جميع أسهم الشركة التي لها حقوق تصويت؛ أن يعقدوا جمعية عامة دون مراعاة للأوضاع والمدد المقررة للدعوة، للنظر في الأمور التي يكون اتخاذ القرار بشأنها من اختصاص الجمعية العامة.

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 91 explained in plain English

This article regulates how shareholders are called to a shareholders' assembly meeting in a joint stock company, so that every shareholder knows of the meeting and can prepare for it.

First: the timing of the call and how it is notified

  • The call is issued at least 21 days before the meeting date, according to the rules set by the regulations.
  • Shareholders are notified by registered letters to their addresses in the shareholders' register, or the call is announced through modern technology means.
  • A copy of the call and the agenda is sent to the commercial register, and a copy to the Authority if the company is listed on the financial market on the date the call is announced.

Second: what the call must contain at a minimum

  • A statement of who is entitled to attend, their right to appoint a proxy of their choosing who is not a board member, the shareholder's right to discuss the items and put questions, and how to vote.
  • The place, date, and time of the meeting.
  • The type of assembly: ordinary or extraordinary.
  • The agenda, including the items to be voted on.

Third: an exception for unlisted companies

If shareholders representing all the company's shares that have voting rights meet in an unlisted company, they may hold a general assembly without being bound by the call procedures and periods, to consider matters within the general assembly's competence.

Article 90 provides that assemblies are convened by the board of directors, and the cases in which they are called by the auditor or the competent authority, while Article 92 refers to the same arrangements in this article when calling a second meeting if the quorum is not met. If in doubt about the validity of a call or meeting, it is advisable to consult a lawyer specialized in company and commercial matters.

Practical example

An unlisted joint stock company in Jeddah decided to hold its general assembly on the 25th of the month, so it sent the call to shareholders by email 21 days before the date, stating the place, time, agenda, and each shareholder's right to appoint a proxy who is not a board member, and sent a copy to the commercial register. If there were only three shareholders owning all the voting shares and they met together, they could hold the general assembly immediately without waiting for the call period.

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 91 of the Saudi Companies Law

How many days before the meeting must the general assembly call be issued?

The call is issued at least 21 days before the set meeting date, according to the rules set by the regulations.

Can the general assembly call be sent electronically?

Yes. Shareholders may be notified by registered letters to their addresses in the shareholders' register, or the call may be announced through modern technology means.

Can I appoint someone else to attend the assembly for me?

Yes. The call must state the shareholder's right to appoint a proxy of their choosing to attend the meeting, provided they are not a board member.

Can a general assembly be held without a prior call?

This is permitted in an unlisted joint stock company if those present represent all the company's shares with voting rights, to consider matters within the competence of the general assembly.

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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.