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Ministerial Decision

Ministry of Commerce: Decision 239 Regarding the Filing of Financial Statements Pursuant to the Provisions of the System of Companies and Its Executive Regulation

Arabic

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.