KSA Companies Law

In detail

Key amendments and new provisions look set to include:

• More detailed provisions specific to limited liability companies - providing a similar level of detail as those previously included for joint stock companies (“JSC”).

• Introducing and regulating non profit professional companies.

• Allowing the introduction of a family charter in the articles of association to regulate ownership, governance, management, work policy, relatives employment, and dividends distribution in family owned companies.

• Introducing and regulating a new type of company - a simple JSC.

• Removing restrictions on company names, and share lock in periods.

• Allowing LLCs to issue tradable debt and financial instruments.

• An overhaul of the conversion and merger processes, and allowing companies to be split into two or more companies.

• Exempting small companies from the requirement to appoint an external auditor.

• facilitating the split of shares into shares with a lower nominal value, or merging them to result in shares with a higher nominal value.

• Arrangements to help companies attract high caliber talent by allowing the issue of shares to be dedicated to employees, and/or options to acquire such shares after a specific period.

• Allowing the distribution of interim/annual dividends to the partners/shareholders.

• Enhancing the automation of the process for various tasks including establishment requests, general assembly meetings attendance, and virtual voting using technology tools.

• Introducing alternative methods for the resolution of disputes.

• Simplifying the liquidation procedures in line with the KSA Bankruptcy Law.