H.E. the Minister of Commerce and Industry Dr. Tawfiq Bin Fawzan Al Rabiah has issued a Ministerial decree to adopt the guiding forms for the contracts of setting up the corporate, and the related regulations for each type of companies, based on paragraph (1) of Article 225 of the New Corporate Law issued by the Royal Decree No. M / 3 dated 28/01 / 1437 H, which stipulates that " Guiding Forms to be issued by the Minister`s decision for the contracts of setting up the corporate and the basic regulations for each type of companies during one hundred and twenty days from date of issuing the New Corporate Law, and to be published in the Ministry's Web site, and to be adopted from the date when this law comes into effect".
MCI calls on those interested to review such guiding forms, which are scheduled to be in force in conjunction with the new Corporate Law coming into effect through the Ministry's website, via the link: click here
It is noteworthy that the New Corporate Law is considered one of the most prominent developing and economic regulations issued by K.S.A. in order to provide a regular environment to be as an incubator that stimulates initiatives and investment, so that to enhance the value of the companies, to develop their activities and to make them contribute positively in the national economy, besides reducing the procedures cost, also to encourage business initiatives, so as to promote the pioneering position of the Kingdom and its competitive advantages, and to encourage the investment of entrepreneurs and small and medium enterprises.
The legal framework of the New Corporate Law would provide fair and sound practices of the corporate governance principles, which dedicate the institutional concepts, and support the growth and continuity of economic entities, in addition to improving the performance of business enterprises and their transactions integrity, through the application of sound and fair standards of transparency and disclosure, besides highlighting the role of shareholders committees and boards of directors in shaping the corporate strategies and responsibilities, as far as their activities are concerned.