Companies Law

Inapplicability of Auditor Appointment Requirement 1. The provision stipulated in Article 18 of this Law relating to the appointment of an auditor shall not apply to micro and small companies, except in the following cases: a) If the articles of incorporation or articles of association stipulate the appointment of an auditor. b) If it is listed in the capital market. c) If it issues debt instruments, traded financing sukuk, preferred stock, or redeemable stock. d) If relevant laws require the appointment of an auditor. e) If it is a foreign company. Companies Law f) If it owns another company or is a subsidiary of another company, unless the description of a micro or small company applies to all such companies. For purposes of application of this paragraph, the Regulations shall set the criteria upon which a company is deemed a micro company or small company. 2. For the application of paragraph (1) of this Article, a company shall be deemed a micro company or small company during the first fiscal year of its registration with the Commercial Register, or for two consecutive fiscal years. 3. One or more partners or shareholders of a company to which paragraph (1) of this Article applies who represent at least 10% of its interests or voting shares may request in writing the appointment of an auditor in accordance with the rules specified in the Regulations. 4. The provision of Article 18 of this Law, which provides for the appointment of an auditor, shall not apply to a general partnership, except in the following cases: a) If all of the partners in the company are companies in a form other than a general partnership. b) If all of the partners in the company are companies in the form of a general partnership and the partners in such companies are companies in a form other than a general partnership. c) If the company’s articles of incorporation provide for the appointment of an auditor.