Article 7 of the Saudi Insurance Control Law

This article establishes the principle of the personal responsibility of leaders for the company's violations. Responsibility does not stop at the company as an entity, but extends to:

• The chairman of the board.
• The managing director.
• The board member.
• The general manager.

The violation meant is the company's violation of the provisions of this Law or its Implementing Regulations. The responsibility is limited by the phrase "each within his competence", meaning each of them is held accountable for what falls within the scope of his tasks and powers, not for every violation that occurs in the company without limit.

The article concerns insurance companies and reinsurance companies, and does not mention ancillary services companies. It does not specify the type of responsibility or the penalty that follows, or how the limits of each person's competence are determined.

It is linked to Article 6, which requires the Central Bank's approval for nominating board members, managers and holders of senior positions; the Law therefore supervises those who take up management when they are appointed and then holds them responsible during their work. It is followed by Article 8, which gives the right to inspect the company's records and accounts. Anyone in a leadership position who faces accountability should consult a lawyer who specializes in insurance and financial sector matters.