Article 24 of the Saudi Real Estate Investment Schemes Law
المادة 24 من نظام المساهمات العقارية · الفصل الرابع: جمعية المساهمين
The article makes the licensee, or its representative, chair of the shareholders' assembly and confirms the right of all shareholders to attend its meetings.
Official text (Arabic)
This article has not been amended since the law was issued.
يرأس المرخص له -أو من يمثله- الجمعية، ويحق لجميع المساهمين حضور اجتماعات 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 24 explained in plain English
This article provides two simple but important rules:
1- Chairing the assembly: The assembly is chaired by the licensee or its representative. Under this text the chair is not elected from among the shareholders; the chair is the licensee by operation of the Law, which may appoint someone to represent it.
2- The right to attend: All shareholders have the right to attend assembly meetings. The text is general and does not tie the right to attend to any particular number of shares.
Article 23 specifies who may call its meetings, and Article 25 specifies the quorum required for meetings to be valid and how decisions are made by a majority of the shares represented.
In practice, the right to attend means that a shareholder can follow and take part in the matters raised, even if their share is small. But how decisions carry depends on the shares represented under Article 25, not on the number of people present.
If a shareholder is prevented from attending an assembly meeting, or a dispute arises over how the meeting is run, they can consult a lawyer specializing in real estate cases.
Practical example
A shareholders' assembly meeting was held for a real estate investment scheme in Riyadh, and the licensee company's chief executive delegated one of its employees to chair it. Mohammed, who holds a single share, attended because Article 24 gives all shareholders the right to attend.
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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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 24 of the Saudi Real Estate Investment Schemes Law
Who chairs the shareholders' assembly in a real estate investment scheme?
The licensee or its representative.
Does every shareholder have the right to attend assembly meetings?
Yes. The article provides that all shareholders have the right to attend assembly meetings.
Is the chair of the assembly elected from among the shareholders?
No. The article gives the chair to the licensee or its representative.
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 22
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.
يكون للمساهمة العقارية جمعية تتشكل من جميع المساهمين المسجلين في سجل المساهمة العقارية. وتحدد اللائحة اختصاصات الجمعية.
- 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 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.