The Ministry of Commerce and Investment announced that it is permitting the boards of directors of joint-stock companies (closed) to hold their general meetings without the need to obtain prior approval from the Ministry or for a Ministry representative to attend the meeting, provided that a copy of the invitation and agenda is sent to the Ministry for its information electronically in accordance with Article 91 of the Companies Law, and that the results and recommendations of the general meetings are submitted electronically after they are held so that the Ministry may carry out its subsequent oversight duties.

The Companies Law requires that an ordinary general meeting be held at least once during the six months following the end of the company’s fiscal year, and other meetings may be convened as needed. Article (88) of the Companies Law outlines the jurisdiction of the extraordinary general meeting.

This initiative stems from the Ministry’s commitment to reviewing and developing the laws, regulations, and legislation governing corporate operations in the Kingdom to meet current and future needs, as part of its initiatives aimed at improving and developing the business and investment environment in the Kingdom and enabling the private sector to contribute to achieving the strategic objectives of the Kingdom’s Vision 2030.