The Minister of Commerce,
based on the powers entrusted to him by law,
based on article 262(e) and 267(1) of the Companies Law issued by Royal Decree D/132 dated 1 Dhu Al-Hijja 1443 [30 June 2022],
and after perusal of article 94 of the Executive Regulation of the Companies Law promulgated by Ministerial Decision 284 dated 23 Jumada Al-Thani 1444 [16 January 2023],
and in pursuance of public interest,
hereby decides
First
A direct punishment is hereby imposed on anyone who violates his duty to deposit the financial statements in accordance with the provisions of the Companies Law and its executive regulation. The fine must be imposed on every violator in accordance with the following:
|
Forms of companies other than the unlisted joint stock company |
||
| Capital | Number of managers |
Fine |
| Less than 500,000 (five hundred thousand) Riyal | One manager | 8,000 (eight thousand) Riyal |
| Two managers and more | 4,000 (four thousand) Riyal | |
| 500,000 (five hundred thousand) Riyal and more | One manager | 12,000 (twelve thousand) Riyal |
| Two managers and more | 6,000 (six thousand) Riyal | |
|
Unlisted joint stock company |
|
| Capital |
Fine |
| Less than 5,000,000 (five million) Riyal | 15,000 (fifteen thousand) Riyal |
| 5,000,000 (five million) Riyal and more | 20,000 (twenty thousand) Riyal |
Second
In the event that the violation of non-deposit of the financial statements is repeated during the legal period of the fiscal year following the previous violation decision that is considered final, the fine is increased by 50%.
Third
The mechanism for notifying the direct violation decision is in accordance with the mechanism stipulated in article 94 of the Executive Regulation of the Companies Law.
Fourth
This decision must be published in the official gazette, and comes into force on 1 July 2024.
Minister of Commerce
Dr Majid bin Abdullah Al-Kassabi
Issued on: 27 Dhu Al-Qa’dah 1445
Corresponding to: 4 June 2024
Published in Umm Al-Qura 5036 issued on 28 June 2024.
The Council of Ministers
after perusal of its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, Royal Court File 17195 dated 9 Rabi Al-Awwal 1445 [24 September 2023], which includes Royal Commission for the City of Riyadh Letter 20230918062 dated 3 Rabi Al-Awwal 1445 [18 September 2023], regarding the request of the authority to complete the necessary legal procedures regarding the establishment of a non-profit institution for the Model Institute of the Capital that is under the scope of the authority,
after perusal of the organizational arrangements for the Model Institute of the Capital in Riyadh and the Thagr Model Schools in Jeddah issued by Council of Ministers Decision 238 dated 13 Jumada Al-Awwal 1439 [30 January 2018],
after perusal of the Bureau of Experts at the Council of Ministers Memorandums 1284 dated 16 Rabi Al-Thani 1445 [31 October 2023], 2383 dated 2 Rabi Al-Thani 1445 [17 October 2023], and 3036 dated 19 Rabi Al-Thani 1445 [3 November 2023],
after perusal of the Council of Economic and Development Affairs Recommendation 21-37/ 45/D dated 4 Ramadan 1445 [14 March 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 10863 dated 16 Shawwal 1445 [25 April 2024],
hereby decides
First
The Model Institute of the Capital of Riyadh is hereby transformed to a non-profit establishment owned by the Royal Commission for Riyadh City. The authority may consider transferring the ownership of the establishment to the Riyadh non-profit establishment after its establishment.
Second
The provisions relating to the Model Institute of the Capital in Riyadh stipulated in the organizational arrangements for the Model Institute of the Capital in Riyadh and the Thagr Model Schools in Jeddah issued by Council of Ministers Decision 238 dated 13 Jumada Al-Awwal 1439 [30 January 2018] are hereby repealed.
Third
The Royal Commission for the City of Riyadh, in coordination with the relevant authorities shall prepare the draft statute of the institution referred to in clause First of this decision—guided by the provisions of the constitution of King Saud University approved by Royal Order 9589 dated 9 Safar 1444 [6 September 2022] and the constitution of King Faisal Specialist Hospital and Research Centre approved by Royal Order 30176 dated 13 Jumada Al-Awwal 1443 [18 December 2021]—and reporting it to complete the legal procedures.
Fourth
The entry into force of clauses First and Second of this decision must be from the date of entry into force of the constitution of the establishment referred to in clause Third of this decision.
Salman bin Abdulaziz Al-Saud
Issued on: 20 Dhu Al-Qa’dah 1445
Corresponding to: 28 May 2024
Published in Umm Al-Qura 5035 issued on 7 June 2024.