Saudi Arabia Update - December 2016

LEGAL DEVELOPMENTS

New Regulations Published

The Minister of Commerce and Investment approved the Regulations for Unlisted Joint Stock Companies (Regulations). The Regulations cover many topics, including the following:

• remuneration of the board of directors;
• holding general assembly meetings electronically;
• regulating selling, buying and pledging the company's shares;
• issuance and conversion of preferred shares;
• share sale at auction;
• distribution of profits to shareholders;
• issuance and sale of priority rights resulting from the capital increase; and
• procedures to appoint a third party to attend private or public assemblies.

Furthermore, it includes four forms: pledge request by pledgee form, pledge request by pledgor form, pledge release request form and power of attorney form. The Regulations were published in the Saudi Official Gazette, Um Al-Qura, and came into force on 25 November 2016. Please do let us know if you have any