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Article 92 of the Saudi Companies Law

المادة 92 من نظام الشركات · الفرع الثاني: جمعيات المساهمين

Article 92 requires one quarter of the voting shares to attend an ordinary general assembly, regulates the second meeting if the quorum is not met, and makes resolutions pass by a majority of the votes present.

Official text (Arabic)

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

1- لا يكون انعقاد اجتماع الجمعية العامة العادية صحيحًا إلا إذا حضره مساهمون يمثلون (ربع) أسهم الشركة التي لها حقوق تصويت على الأقل، ما لم ينص نظام الشركة الأساس على نسبة أعلى، بشرط ألا تتجاوز (النصف).

2- إذا لم يتوافر النصاب اللازم لعقد اجتماع الجمعية العامة العادية وفق الفقرة (1) من هذه المادة، توجه الدعوة إلى اجتماع ثانٍ يعقد بالأوضاع ذاتها المنصوص عليها في المادة (الحادية والتسعين) من النظام خلال (الثلاثين) يومًا التالية للتاريخ المحدد لانعقاد الاجتماع السابق. ومع ذلك، يجوز عقد الاجتماع الثاني بعد ساعة من انتهاء المدة المحددة لانعقاد الاجتماع الأول، بشرط أن يجيز ذلك نظام الشركة الأساس، وأن تتضمن الدعوة إلى عقد الاجتماع الأول ما يفيد بإمكانية عقد ذلك الاجتماع. وفي جميع الأحوال، يكون الاجتماع الثاني صحيحًا أيًّا كان عدد الأسهم التي لها حقوق تصويت الممثلة فيه.

3- تصدر قرارات الجمعية العامة العادية بموافقة أغلبية حقوق التصويت الممثلة في الاجتماع.

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 92 explained in plain English

This article sets the quorum needed for the validity of an ordinary general assembly meeting in a joint stock company, what happens if it is not met, and the majority required to issue its resolutions.

The first meeting:

  • The meeting is valid if attended by shareholders representing at least one quarter of the company's shares that have voting rights.
  • The company's bylaws may require a higher percentage, provided it does not exceed one half.

The second meeting if the quorum is not met:

  • The call to a second meeting is issued under the same arrangements stated in Article 91, and the meeting is held within the thirty days following the date set for the previous meeting.
  • The second meeting may be held one hour after the end of the period set for the first meeting, on two conditions: that the company's bylaws permit it, and that the call to the first meeting includes a statement that it may be held.
  • The second meeting is valid whatever the number of voting shares represented in it.

Issuing resolutions: ordinary general assembly resolutions are issued with the approval of a majority of the voting rights represented at the meeting, that is, a majority of the votes present, not a majority of all the company's shares.

These percentages differ from what Article 93 provides for the extraordinary general assembly, which requires there attendance of half the voting shares at the first meeting and higher majorities for resolutions. To know whether a particular meeting is valid, it is advisable to consult a lawyer specialized in company and commercial matters.

Practical example

A joint stock company in Riyadh called its ordinary general assembly, and shareholders owning only 20% of the voting shares attended, so the quorum was not met. Because the company's bylaws permit it and the first call stated that a second meeting could be held, the second meeting was held one hour after the end of the first meeting's period and was valid although attendance remained 20%, and its resolutions were issued by a majority of the votes present.

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 92 of the Saudi Companies Law

What quorum is required for an ordinary general assembly meeting to be valid?

Attendance of shareholders representing at least one quarter of the company's shares that have voting rights, unless the bylaws require a higher percentage not exceeding one half.

What happens if the ordinary general assembly's quorum is not met?

A call is issued to a second meeting held within the following thirty days, and it is valid whatever the number of voting shares represented in it.

Can the second meeting be held on the same day?

Yes, one hour after the end of the first meeting's period, provided the bylaws permit it and the call to the first meeting includes a statement that it may be held.

What majority is needed for ordinary general assembly resolutions?

They are issued with the approval of a majority of the voting rights represented at the meeting.

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.