Corporate Governance & Compliance Services in Jeddah

Corporate governance in Jeddah: a statutory obligation, not an administrative choice

With the new Companies Law and the Corporate Governance Regulations issued by the Capital Market Authority, sound governance is no longer a policy large companies adopt voluntarily: it's a statutory obligation touching every joint-stock company, and an increasingly important best practice even for LLCs planning investment rounds or a future listing. The lawyers help boards and business owners in Jeddah build a governance structure that protects the company and shareholders together, not just a document filed away in a drawer.

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The audit committee: the statutory minimum

Article 50 of the Companies Law requires audit committee members to be independent of executive management, with a minimum of three members holding no executive positions in the company. A member may not have worked in the company's executive or financial management, or for its auditor, within the past two years, and no audit committee member may sit on audit committees of more than five listed joint-stock companies simultaneously. The general assembly issues the committee's charter based on the board's proposal, and the committee reports directly to the board without intermediaries.

Conflicts of interest and disclosure: Article 71

A board member may not vote on any resolution in which they have a direct or indirect interest, and Article 71 of the Companies Law obligates them to inform the board of any personal interest in the company's business or contracts. Related-party transactions need prior authorization from the ordinary general assembly, renewed annually: one of the provisions the lawyers review most carefully for clients to avoid later decisions being invalidated over an overlooked authorization.

Our corporate governance services

• Reviewing the incorporation contract and bylaws for alignment with current governance regulation requirements
• Drafting audit committee and nomination and remuneration committee charters
• Organizing conflict-of-interest disclosure and related-party transaction procedures
• Representing the company before the Capital Market Authority on any governance query or violation

How we start

1. The lawyers review your company's current governance structure and identify gaps against statutory requirements
2. The lawyers draft or update the necessary internal charters and policies
3. The lawyers follow through on implementation and represent you in any contact with regulators

To review your company's governance in Jeddah before it becomes a costly regulatory gap, contact us on WhatsApp.

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