The The Ministry of Commerce and Investment issued regulatory controls for unlisted joint stock companies in implementation of the Companies Law issued by Royal Decree No. (M/3) dated 28/1/1437H, which came into effect as of the twenty-fifth of last Rajab, corresponding to May 2, 2016, and the Companies Law entrusted the regulation of a number of topics to regulations issued by a decision of the Minister, aiming to regulate a number of important aspects related to the work of joint stock companies These are the remuneration of board members, holding general assembly meetings for shareholders and their participation through modern technology, buying, selling and pledging the company's shares, mortgaging the company's shares, issuing preferred shares and transferring them, selling the share in a public auction, distributing profits to the company's shareholders, issuing and selling priority rights resulting from the capital increase, and proxy procedures in attending general and special assemblies.

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These regulations were prepared in coordination with the Capital Market Authority after studying best practices and relevant international standards, in addition to holding several workshops for the purpose of soliciting feedback on these regulations.

These regulations were prepared in coordination with the Capital Market Authority.

The issuance of these regulations comes as a continuation of the joint cooperation and coordination between the Ministry of Commerce and Investment and the Capital Market Authority to ensure the implementation of the Companies Law in a way that reflects positively on the entities subject to it and to achieve the desired objectives of it.