Minimum Requirements
The Companies Law sets a minimum governance requirement for each legal structure, from board authority to how major strategic decisions get made through the general assembly.
Need a lawyer for this? This corporate lawyer directory lists independent lawyers in Saudi Arabia and can put you in touch with one in Riyadh, Jeddah or Dammam. Browse the full lawyer directory or see the legal services covered.
Companies growing quickly or bringing in new investors need regular governance review, since authority suited to a small company may need reconsidering as operations expand.
Additional Requirements for Listed Companies
Listed companies or those planning a listing are subject to additional governance requirements issued by the Capital Market Authority, beyond the minimum required for unlisted companies.
When to Review Your Governance
Review is warranted whenever there's a material change in ownership structure, operational scope expansion, or planning for a future public listing.
Who Benefits From This Guide
Companies bringing in new investors that need their governance updated.
Boards needing to confirm their decisions issue within correct regulatory authority.
The lawyers help these companies under the corporate governance and compliance service, and connect that with a parallel review under the capital markets and securities service when actually preparing for a public offering.
Common Questions
Do we need to review our bylaws every year?
There's no annual requirement, but the lawyers recommend review whenever there's a material change in ownership structure or operational scope.
Do governance requirements differ for a listed company?
Yes, listed companies are subject to additional requirements from the Capital Market Authority beyond the general minimum.
Practical Takeaway
Company governance isn't a document drafted once at formation, it needs periodic review as the company evolves.
Companies planning funding rounds or a public listing benefit from a proactive governance review before starting these procedures.