Saudi Arabia is a country teeming with business and investment opportunities. But, for those unfamiliar with the Kingdom’s legal structures, finding the right specialist to guide them through challenges and pitfalls is one of the key differentiators between success and failure. Before delving into the daily operation of the business, it is essential to understand the different
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RIYADH: The new Saudi Companies Law will play a pivotal role in providing an incubating and stimulating environment for investment, especially in family businesses and small and medium enterprises, according to the chairman of the National Center for Family Enterprises. The new law facilitates procedures and regulatory requirements to stimulate the business environment and
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Joint stock companies have an important and large role in the Saudi economy. As a result, the Kingdom has approved many laws and regulatory procedures to facilitate the process of controlling companies, in addition to severe penalties for noncompliance with laws and specialized procedures.
According to the first paragraph of Article 71 of the Saudi Companies Law, there are specific controls for licensing business and contracts that are made for the company’s account, that the member of the board of directors has a direct or indirect interest in it.
Today we will briefly go through these controls in addition to addressing the scope of the indirect interest of a member of the board of directors in such business and contracts.