The Legal Organization of the Simplified Joint-Stock Company According to the Saudi Companies Law for the Year 1443 AH/ 2022 AD

Comparative Study

Abstract

A new type of commercial company in commercial regulation has been introduced according to the new Saudi companies' regulation issued by Royal Decree No. (M/132) dated 1/12/1443 AH. It is called the "Simplified joint-stock company ". In accordance with the provisions of the regulation mentioned before, the partners in this type of commercial company have ample contractual freedom. This research aims to study the legal system for establishing a Simplified joint-stock company by clarifying the legislator's intention to include this new type within the commercial companies, highlighting the features and characteristics of this company, and the conditions for its establishment; the study adopts the descriptive and analytical method by analyzing the provisions of the Saudi regulation and compares it with French legislation given that the provisions are derived from it. The study recommends amending the texts that allow the company to offer its shares for public subscription and prohibit offering its shares for trading through financial markets or prohibiting them from practicing some of the purposes practiced by the shareholding company so as not to be a substitute for it or a competitor.