The Stages of Public Participation in Decision-Making relevant to the Executive Regulation Proposal for the Professional Corporate Law:
The draft of the Executive Regulation for the Professional Corporate Law had been prepared, Accepted by Project Management Office at the Deputy Ministry of Policies & Regulations Affairs .
The draft of the Executive Regulation for the Professional Corporate Law was launched on 4/7/1441 AH
, through the
Ministry’s official e-portal
and the social media, also direct SMS was sent to the groups concerned with the rules & regulations, in addition to publishing a news through the Saudi News Agency and other media, including a copy of the said system or regulation and a form for expressing opinions, comments or notes.
Third: Collecting E-Posts:
The following email (CLR@mci.gov.sa) had been prepared to receive the feedback about the draft within the specified period.
|Total Public Participation in various channels 37|
Fourth: Analyzing the E-Posts:
After the survey deadline ended on 19.03.2020 AD, the officials in charge of this proposal prepared a schedule containing the articles, feedback, notes and suggestions to be studied by the specialists.
|Article text before polling||Public opinion||Amend the article based on electronic Counseling|
D. That each licensee allowed to perform the professional services within the limits and scope of his profession and in accordance with the regulations and customs of the profession, without interfering with the duties and work of partners or shareholders that are practicing other free professions.
Two notes were mentioned and received on this article, as follows:
1. It is suitable to add the words “the professional standards” to paragraph (d).
D. Every licensee allowed to perform the professional service within the limits and scope of his free profession, who is authorized to practice in accordance with the rules and regulations and the standards of the free profession, without interfering with the services and work of other free professions.
|2. We suggest setting up a mechanism or procedure for the company practicing more than one free profession, that the professionals should follow an ethical practice of the profession according to the rules and practices of the ethical profession, so that to avoid conflicts of interests.|
A new paragraph has been added to the article as follows:
E. That each licensee adhere to the rules, regulations and the standards of his free profession when dealing with cases of conflict of interest.
|a. The shares or stocks of those unlicensed shall not exceed (30%) thirty percent of the total shares or stocks constituting the capital of the professional company, unless the Minister decides - after coordination with the relevant competent authority - a lower percentage for some free professions.||Three notes were mentioned on Paragraph (A) of Article (Thirteen), as follows:|
1- Add the word “total” so the phrase to be read: The total should not exceed ..., so that to avoid delusion regarding each licensee separately.
|a. The total shares or stocks of those unlicensed in the professional company should not exceed 30% of the professional company's capital. The Minister, after coordination with the competent authority and other related bodies, may amend this percentage for some free professions or for some forms of professional companies.|
|2- It is more appropriate that the Minister, after coordination with the competent authority, would amend the percentage in general, and not to limit it for reduction only.|
|3- This paragraph may constitute a hindrance to the inclusion of the professional company in the stock market in the future, because of the challenges that may be presented in it in meeting the cash requirements needed for listing. It is clear to exclude the professional company listed in the stock market from the entry mentioned in the said paragraph.|
Fifth: Making and Announcing the Decision:
The amendments on the articles were studied and approved by the Ministry’s officials 22/08/1441 AH
, and the said regulation was published through the Ministry’s official e-portal
and social media, also via the Saudi News Agency and other various media.
Sixth: Closing the Discussion and Archiving:
After announcing the decision, the subject was officially closed and all the relevant documents were archived.