Companies Law

Without prejudice to any harsher penalty under any other law, the following persons shall be subject to a fine not exceeding five hundred thousand riyals: a) Any person who impedes the call for a meeting of the general assembly of partners or shareholders or the holding thereof, and any person who prevents a partner or shareholder from participating in an assembly of shareholders or partners or prevents him from exercising the voting rights associated with his interests or shares in the company, in violation of the provisions of this Law. b) Any person who fails to perform his duty to call for a meeting of the general assembly of partners or shareholders within the prescribed period as provided for in this Law. c) Any person who, in violation of the provisions of this Law, agrees to being appointed as a member of the board of directors of a joint-stock company or retains such membership, as well as any board member of a company in which such violations occur who is aware of the same without objecting thereto as specified in the provisions of this Law. d) Any board member of a joint-stock company who obtains a guarantee or loan from the company in violation of the provisions of this Law, as well as any board member of a company in which such violation occurs who is aware of the same without objecting thereto as specified in the provisions of this Law. e) Any person who fails to perform his duty to maintain the company’s accounting records and supporting documents relating to its activities and contracts; to prepare financial statements in accordance with accounting standards approved in the Kingdom; or to deposit the same as provided for in this Law. f) Any person who neglects his duty to provide the Competent Authority with Companies Law the documents stipulated in this Law. g) Any person who neglects his duty to make necessary documents available to a partner or shareholder as provided for in this Law. h) Any person who neglects his duty to record deliberations and prepare meeting minutes as provided for in this Law. i) Any person who neglects his duty to include any of the information provided for in Article 12 of this Law. j) Any person who agrees to or continues to work as an auditor with his knowledge of the existence of the reasons preventing him from performing such duty as provided for in this Law. k) Any person who neglects his duty to register a company or any amendments to its articles of incorporation or articles of association with the Commercial Register as provided for in this Law. l) Any person who intentionally records false information or information which violates the provisions of this Law in the company’s articles of incorporation or articles of association, other company documents, or the company’s incorporation application or the documents enclosed therewith, as well as any person who knowingly signs such documents or registers them with the Commercial Register. m) Any manager or board member of a professional company who violates the rules governing the activity of professional companies or the terms, conditions, and general rules referred to in Article 200 of this Law. n) Any person who violates the provision of Article 202(2) of this Law, and any manager or board member of a professional company who violates the provision of Article 204 of this Law. o) Any manager, board member, or single owner of a professional company which practices a profession without having a partner or shareholder who is licensed to practice such profession. p) Any liquidator who fails to perform his duty to register his appointment decision or to register the end of liquidation with the Commercial Register and publish it therein as provided for in this Law. q) Any person who neglects to take the measures necessary to rectify a violation upon his notification thereof as provided for in this Law. r) Any auditor who fails to perform his duties as provided for in this Law. s) Any company or officer therein who unjustifiably fails to comply with the provisions of this Law and its Regulations or with the rules and decisions issued by the Competent Authority.