Companies Law
Art. 124Status unknownSaudi ArabiaRegulation
Issued by Ministry of Investment (misa.gov.sa)
1. The reserve allocated for specific purposes in the company’s articles of
association may not be used except pursuant to a decision by the
extraordinary general assembly. If such reserve is not allocated for a specific
purpose, the ordinary general assembly may, upon a recommendation by
the board of directors, decide to use the reserve for the benefit of the
company or the shareholders. The Competent Authority may set the rules
for using such reserves.
2. The ordinary general assembly may use retained earnings and distributable
reserves to pay the remaining value of the share or part thereof, provided
fairness among shareholders is observed in accordance with the provisions
Companies Law
of this Law.
The Arabic text is the legally binding version. The English translation is provided for guidance only.
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