Governs the formation, management, and dissolution of commercial companies.
A company is a contract by which two or more persons agree to contribute to an economic enterprise and share profit and loss.
The articles of association are binding on all partners and must be deposited with the competent authority.
Upon incorporation, a company enjoys legal personality independent of its partners.
The capital of a joint-stock company must not be less than five million riyals at incorporation.
Profits may not be distributed to shareholders if this would reduce capital below the minimum.
The Board of Directors must meet at least once every three months.
Every shareholder has the right to attend the general assembly and vote on proposed resolutions.
A company is dissolved upon expiry of its term, extraordinary general assembly decision, or judicial ruling.
The liquidator is appointed by the general assembly or court order; the Board's powers cease upon appointment.
Joint-stock companies may issue preferred shares without voting rights in exchange for a financial advantage.