Including the Mechanisms of how the General Assemblies Participate through the Modern Technology
The Ministry of Commerce and Investment has issued the regulations and controls for joint stock companies, not included in the Corporation Law, which was issued by the Royal Decree No. (M / 3) dated 28/01/1437 H, and enforced on 25.07.1437 AH, corresponding to 02.05.2016 AD, which entrusted those responsible of Corporation Law to organize a number of issues to be contained in specific regulations, to be issued by the Minister’s decision. These regulations aim to organize a number of important issues, relevant to the work of joint stock companies, not included in such law, namely: remuneration of members of the board of directors, holding meetings of the general assemblies of the shareholders, with their participation through smart devices, buying, selling and mortgage of the company’s shares, the issuance of preferred shares and effect transferring, selling stocks at auction, distribution of profits among the shareholders, the issuance and sale of priority rights resulting from the capital increase, procedures of power of attorney for attending the general and private assemblies.
These regulations and controls have been prepared in coordination with the Capital Market Authority, after making relevant research and study of the best international practices, standards and criteria, taking into account the opinion of those interested, concerned and specialists, through making questionnaire and survey for that purpose, besides holding a number of workshops for getting any relevant observations or remarks about these regulations & controls.
The issuance of these regulations and controls comes as a complement to the cooperation and coordination between the Ministry of Commerce & Investment and the Capital Market Authority, so as to ensure the application of the Corporate Law perfectly, and in a way to be reflected positively on those concerned, and to achieve the desired goals.
For reviewing the said regulations & controls, you may access the following link: click here