Article 26 of the Saudi Real Estate Investment Schemes Law
المادة 26 من نظام المساهمات العقارية · الفصل الرابع: جمعية المساهمين
The article allows assembly meetings to be held, and their decisions voted on, by the modern technology means that the Implementing Regulations specify.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز عقد اجتماعات الجمعية والتصويت على قراراتها؛ بواسطة وسائل التقنية الحديثة التي تحددها اللائحة.
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 26 explained in plain English
This article allows shareholders' assembly meetings to be held, and their decisions voted on, by modern technology means, and the provision covers two things:
- Holding the meeting itself by these means.
- Voting on decisions by these means.
But the article limits this to the means that the Implementing Regulations specify; the article itself does not name a particular means, and the Implementing Regulations must be consulted to know which means are accepted. The provision is also permissive, through the word "may", so it does not require a meeting to be held this way.
This is of practical importance: in many schemes the shareholders are scattered across different cities, and attending in person may be hard for them. Making participation easier helps meet the quorum that Article 25 requires, which is two-thirds of the capital for the first meeting and half for the second.
Article 27 then requires that the scheme's assets be valued by accredited valuers before they are sold.
If a dispute arises over the validity of a meeting held, or a vote conducted, by technological means, the reference is what the Implementing Regulations specify, and you can consult a lawyer specializing in real estate cases.
Practical example
Omar lives in Jeddah and holds shares in a real estate investment scheme in Riyadh. The assembly was called to a meeting held through one of the technology means specified by the Implementing Regulations, so Omar took part and voted without traveling.
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
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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 26 of the Saudi Real Estate Investment Schemes Law
May a shareholders' assembly meeting be held remotely?
Yes. Assembly meetings may be held by the modern technology means that the Implementing Regulations specify.
Can assembly decisions be voted on electronically?
Voting on assembly decisions may be done by the modern technology means that the Implementing Regulations specify.
Which technology means are accepted?
The article does not specify them; it refers their determination to the Implementing Regulations.
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 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
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.