Article 22 of the Saudi Real Estate Investment Schemes Law
المادة 22 من نظام المساهمات العقارية · الفصل الرابع: جمعية المساهمين
The article provides that every real estate investment scheme has an assembly made up of all shareholders registered in the scheme register, and refers the assembly's powers to the Implementing Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون للمساهمة العقارية جمعية تتشكل من جميع المساهمين المسجلين في سجل المساهمة العقارية. وتحدد اللائحة اختصاصات الجمعية.
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 22 explained in plain English
This article establishes the shareholders' assembly for each real estate investment scheme and specifies:
- That it is mandatory: the wording "a real estate investment scheme shall have an assembly" means every scheme has one.
- Its members: all shareholders registered in the scheme register, with no minimum number of shares required for membership.
- Its powers: determined by the Implementing Regulations.
Because membership is tied to registration, being entered in the shareholders' register matters to a shareholder; under Article 1, the register is where the names of the shareholders, their shares and any change in ownership of those shares are recorded.
Article 23 then specifies who may call its meetings, including shareholders representing 10% of the capital.
The assembly is thus the framework through which shareholders take part in the important decisions of the scheme. A shareholder should make sure they are registered in the register so that they are a member of the assembly. If there is a dispute about the assembly's powers or decisions, you can consult a lawyer specializing in real estate cases.
Practical example
Hind owns only two shares in a real estate investment scheme in Riyadh and thought she was not a member of the assembly because she had so few shares. But Article 22 makes the assembly up of all shareholders registered in the register, so she is a member as long as she is registered.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentReal Estate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Real Estate Law lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 22 of the Saudi Real Estate Investment Schemes Law
Who are the members of the shareholders' assembly?
The assembly is made up of all shareholders registered in the real estate investment scheme register.
Is a minimum number of shares needed to be a member of the assembly?
The article sets no minimum; membership is for all registered shareholders.
Where are the powers of the shareholders' assembly set out?
The Implementing Regulations set out the assembly's powers.
More articles on Shareholders' Assembly
- Article 20
The article allows the licensee, the Authority and the assembly to remove the scheme manager, in accordance with the Implementing Regulations, if the manager abuses their powers or fails to perform their obligations, without prejudice to any penalty.
يحق للمرخص له وللهيئة وللجمعية عزل مدير المساهمة العقارية وفق ما تحدده اللائحة في حال إساءته استخدام صلاحياته أو إخلاله بتنفيذ التزاماته، ولا يخل ذلك بأي عقوبة
- Article 23
The article specifies who may call assembly meetings: the licensee, the scheme manager, shareholders representing 10% of the capital, or the Authority on request, with the place of the meeting stated in the notice.
تنعقد اجتماعات الجمعية بدعوة من المرخص له أو مدير المساهمة العقارية أو مساهمين يمثلون (10%) من رأس مال المساهمة العقارية أو بطلب من الهيئة، ويحدد في الدعوة للاج
- Article 24
The article makes the licensee, or its representative, chair of the shareholders' assembly and confirms the right of all shareholders to attend its meetings.
يرأس المرخص له -أو من يمثله- الجمعية، ويحق لجميع المساهمين حضور اجتماعات الجمعية.
- Article 25
The article sets the quorum for shareholders' assembly meetings: two-thirds of the capital for the first meeting, half for the second within 15 days, and the third within 7 days at any percentage with at least three attendees; decisions by majority.
لا يكون اجتماع الجمعية (الأول) صحيحاً إلا إذا حضره مساهمون يمثلون ما لا يقل عن (ثلثي) رأس مال المساهمة العقارية، وإذا لم يتوافر النصاب اللازم لعقد اجتماع الجمعي
- Article 26
The article allows assembly meetings to be held, and their decisions voted on, by the modern technology means that the Implementing Regulations specify.
يجوز عقد اجتماعات الجمعية والتصويت على قراراتها؛ بواسطة وسائل التقنية الحديثة التي تحددها اللائحة.
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.