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Article 93 of the Saudi Companies Law

المادة 93 من نظام الشركات · الفرع الثاني: جمعيات المساهمين

Article 93 sets the quorum for an extraordinary general assembly across its three meetings, and requires two thirds of the votes present for resolutions and three quarters for capital, term, dissolution, merger, and split decisions.

Official text (Arabic)

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

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

2- إذا لم يتوافر النصاب اللازم لعقد اجتماع الجمعية العامة غير العادية وفق الفقرة (1) من هذه المادة، توجه الدعوة إلى اجتماع ثانٍ يعقد بالأوضاع ذاتها المنصوص عليها في المادة (الحادية والتسعين) من النظام. ومع ذلك يجوز عقد الاجتماع الثاني بعد ساعة من انتهاء المدة المحددة لعقد الاجتماع الأول، بشرط أن تتضمن الدعوة إلى عقد الاجتماع الأول ما يفيد بإمكانية عقد ذلك الاجتماع. وفي جميع الأحوال، يكون الاجتماع الثاني صحيحًا إذا حضره مساهمون يمثلون (ربع) أسهم الشركة التي لها حقوق تصويت على الأقل.

3- إذا لم يتوافر النصاب اللازم لعقد الاجتماع الثاني، وجهت دعوة إلى اجتماع ثالث يعقد بالأوضاع ذاتها المنصوص عليها في المادة (الحادية والتسعين) من النظام، ويكون الاجتماع الثالث صحيحًا أيًّا كان عدد الأسهم التي لها حقوق تصويت الممثلة فيه.

4- تصدر قرارات الجمعية العامة غير العادية بموافقة (ثلثي) حقوق التصويت الممثلة في الاجتماع، إلا إذا كان القرار متعلقًا بزيادة رأس المال أو تخفيضه أو بإطالة مدة الشركة أو بحلها قبل انقضاء المدة المحددة في نظامها الأساس أو باندماجها مع شركة أخرى أو تقسيمها إلى شركتين أو أكثر، فلا يكون صحيحًا إلا إذا صدر بموافقة (ثلاثة أرباع) حقوق التصويت الممثلة في الاجتماع.

5- على مجلس الإدارة أن يقيد لدى السجل التجاري قرارات الجمعية العامة غير العادية التي تحددها اللوائح خلال (خمسة عشر) يومًا من تاريخ صدورها.

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 93 explained in plain English

This article governs the extraordinary general assembly of a joint stock company in terms of quorum and majority, and it is stricter than the ordinary general assembly rules in Article 92 because its resolutions are more serious.

The quorum in three stages:

  • The first meeting: it is valid if attended by shareholders representing at least one half of the shares with voting rights, unless the bylaws provide a higher percentage not exceeding two thirds.
  • The second meeting: it is called under the same arrangements in Article 91, and may be held one hour after the end of the first meeting's period if the call to the first meeting includes a statement that this is possible, and it is valid with attendance of at least one quarter of the voting shares.
  • The third meeting: if the quorum of the second is not met, a third is called under the same arrangements, and it is valid whatever the number of voting shares represented in it.

The majority required for resolutions:

  • The rule: approval of two thirds of the voting rights represented at the meeting.
  • Three quarters of the voting rights represented are required if the resolution concerns increasing or reducing the capital, extending the company's term, dissolving it before the end of its term set in its bylaws, merging it with another company, or splitting it into two or more companies.

Registration with the commercial register: the board of directors must register with the commercial register the extraordinary general assembly resolutions specified by the regulations, within 15 days of their issuance.

Note that the text, in permitting the second meeting to be held after an hour, does not require the bylaws to permit it, unlike what Article 92 requires for the ordinary assembly. For decisive resolutions such as merger or dissolution, it is advisable to consult a lawyer specialized in company and commercial matters.

Practical example

A joint stock company in Dammam wanted to increase its capital, so it called its extraordinary general assembly, and shareholders representing 60% of the voting shares attended, so the quorum was met. On voting, only 70% of the votes present approved, so the resolution was not issued, because a resolution to increase capital requires the approval of three quarters of the voting rights represented at the meeting.

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 93 of the Saudi Companies Law

What quorum is needed for an extraordinary general assembly meeting?

Attendance of shareholders representing at least one half of the shares with voting rights at the first meeting and one quarter at the second, and the third meeting is valid whatever the number of shares represented.

What approval percentage is required to increase capital?

Approval of three quarters of the voting rights represented at the extraordinary general assembly meeting is required.

What is the ordinary majority for extraordinary general assembly resolutions?

Approval of two thirds of the voting rights represented at the meeting, except for resolutions for which the article requires three quarters.

Are extraordinary assembly resolutions registered with the commercial register?

Yes. The board of directors registers the resolutions specified by the regulations with the commercial register within 15 days of their issuance.

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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.