Dr. Fahad Abu Hameed, Undersecretary of the Ministry for Rules and Regulations, enumerated a number of rules and concepts in the new Companies Law that are in line with the best comparative practices, which aim to make a qualitative leap for the commercial and investment sector, and summarized the most important points of the system in the following points:

- Contribute to building sustainable economic entities that meet the elements of institutional work for the benefit of the business community.

The new Companies Law simplified the requirements for establishing a shareholding company by setting the minimum capital at SR500,000 instead of SR2 million.

The new Companies Law authorizes the establishment of shareholding companies. It allows the establishment of joint stock companies from two partners instead of five partners.

The new Companies Law facilitated the requirements for establishing a joint stock company by making its minimum capital five hundred thousand riyals instead of two million. The new law authorizes the establishment of a one-person company in order to encourage institutional work in order to achieve sustainability and growth for companies.

<The new law took care of the principles of corporate governance to ensure fair treatment of all partners. The new law prohibits combining the position of Chairman of the Board of Directors with any executive position in the company, in order to enhance the rights of those dealing with companies and provide the necessary protection for them.

The formation of a committee to encourage corporate action in order to promote sustainability and growth of companies. <Forming an audit committee that specializes in monitoring the company's business. <The new law requires companies to follow the cumulative voting method in electing the board of directors. <The new Companies Law pays special attention to family businesses, recognizing the role they play in the commercial sector and the contribution they make to the national economy. <The new Companies Law provides the legal basis for a joint stock company to issue debt instruments or negotiable financing instruments in accordance with the Capital Market Law. <The new Companies Law authorizes the Minister of Commerce and Industry and the Board of the Capital Market Authority to issue the necessary regulations and decisions to implement the provisions of the Law.

Allowing the publication of articles of incorporation

For his part, Dr. Tariq Al-Naim, Undersecretary of the Ministry of Internal Trade, stressed that the new Companies Law will support the private sector and increase its contribution to economic development, and that it facilitates the procedures for establishing companies and makes them more flexible by allowing the publication of articles of incorporation and statutes through the ministry's website, and establishing the legal framework for holding companies.

Strengthening the role of the shareholder in the company

<The new law authorizes the holding of general assembly meetings for shareholders and the participation of the shareholder in its deliberations and voting on its decisions through the means of modern technology, out of its keenness to activate the roles of shareholders" assemblies and enhance the participation of the largest number of shareholders in them. The new Companies Law also authorizes the holding of the second meeting of the assembly one hour after the expiration of the period specified for the holding of the first meeting, in accordance with the controls specified by the law, in order to speed up the work of the assemblies and not disrupt the performance of the company.

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Avoiding administrative vacuum issues

The Minister of Commerce and Industry or the Chairman of the Board of Directors of the Capital Market Authority, if the Chairman and members of the Board of Directors of a joint stock company submit their resignations, or if the General Assembly is unable to elect a new Board of Directors, shall form a temporary committee with experience and specialization to supervise the management of the company and invite the General Assembly to meet to elect a new Board of Directors.

His Excellency stated that the new law is keen to avoid the effects that may arise from the administrative vacuum in joint stock companies and lead to disruption or disturbance in the company's activities and interests of the shareholders in the company.

His Excellency also mentioned that the new law activated the role of partners in limited liability companies in making company decisions, and obliged its managers to register the fact that losses exceed half of the capital in the commercial register.

His Excellency also mentioned that the new law activated the role of partners in limited liability companies in making company decisions.