Article 25 of the Saudi Real Estate Investment Schemes Law

This article sets the rules for the validity of assembly meetings and the passing of its decisions in three stages:

1. First meeting: valid only if shareholders representing at least two-thirds of the capital attend.
2. Second meeting: if the quorum for the first is not met, a second meeting is called to be held within 15 days after the first, and it is valid only if shareholders representing at least half of the capital attend.
3. Third meeting: if the quorum for the second is not met, a third meeting is called to be held within 7 days after the second, and it is valid whatever percentage of shares is represented, provided that the number of attendees is not fewer than 3 persons.

How voting works:

• In the first and second meetings, decisions are passed by a majority of the shares represented at the meeting, and if the votes are tied, the vote is retaken.
• In the third meeting, decisions are passed by a majority of the shares of those represented at the meeting.

Quorum and voting are counted by shares, not by the number of people, except for the minimum attendance requirement in the third meeting. In practice, this means that shareholders' absence does not paralyze the assembly indefinitely, but it may leave the decision to those who attend the third meeting; it is therefore advisable for a shareholder to attend.

The article is linked to Article 24, which confirms the right of all shareholders to attend, and to Article 26, which allows meetings and voting by modern technology. If the validity of a meeting or a decision is challenged, you can consult a lawyer specializing in real estate cases.