Article 94 of the Saudi Companies Law
المادة 94 من نظام الشركات · الفرع الثاني: جمعيات المساهمين
Article 94 provides that a joint stock company's general assembly resolution takes effect from its issuance unless the Companies Law, the bylaws, or the resolution itself provides another time or specific conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
يسري قرار الجمعية العامة لشركة المساهمة من تاريخ صدوره باستثناء الحالات التي ينص فيها النظام، أو نظام الشركة الأساس، أو القرار الصادر، على سريانه بوقت آخر أو عند تحقق شروط معينة.
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 94 explained in plain English
This article answers an important practical question: from when does a general assembly resolution take effect in a joint stock company?
The general rule: the resolution takes effect from the date of its issuance, that is, from the day it is taken in the assembly.
The exceptions: the resolution takes effect at another time or when specific conditions are met if one of three sources so provides:
- The Companies Law itself.
- The company's bylaws.
- The resolution issued itself, for example where the assembly sets a later date for it to start operating, or makes it conditional on a condition being met.
This flexibility means the general assembly can arrange the timing of its resolutions' effect to suit the company's circumstances, for example by tying a resolution to the start date of a financial year or to the occurrence of a particular matter. The article itself does not detail the cases in which the Companies Law provides a different time of effect, so the articles concerning each resolution should be consulted.
This article connects to Article 93, which requires the board of directors to register with the commercial register the extraordinary general assembly resolutions specified by the regulations within 15 days of their issuance. If a dispute arises over the date a particular resolution takes effect, it is advisable to consult a lawyer specialized in company and commercial matters.
Practical example
The general assembly of a joint stock company in Riyadh met in Ramadan and resolved to change a particular method of the company's work, stating in the resolution that it would begin to apply from the start of the following financial year. This resolution does not take effect from the date of the meeting, but from the date set by the resolution itself. Its other resolutions at the same meeting, for which no time was set, take effect from the date of their issuance.
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 94 of the Saudi Companies Law
When does a general assembly resolution become effective?
As a general rule, a joint stock company's general assembly resolution takes effect from the date of its issuance.
Can the effect of a general assembly resolution be postponed?
Yes, if the Companies Law, the company's bylaws, or the resolution itself provides that it takes effect at another time or when specific conditions are met.
Can an assembly resolution be made conditional?
Yes. The article allows a resolution to take effect when specific conditions are met if the Companies Law, the bylaws, or the resolution issued so provides.
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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 -
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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.