CMA: The quorum for holding a general assembly for listed companies is set by using the registry of shareholders at the end of the trading period on the day of the assembly meeting

​The Capital Market authority emphasized that setting the necessary quorum to correctly hold general assemblies for listed companies on the Saudi Stock Exchange is done by using the shareholders' registry in the company's records by the end of the trading period on the day of the general assembly meeting. CMA explained in a circular for all listed companies that violating this is a violation of the validity of the assembly meeting.

This CMA circular is based on the Companies Law and the Capital Market Authority's duties and responsibilities stated in its Law. Paragraph (2) of Article (86) of the Companies Law states that "every shareholder have the right to attend general assemblies even if the company's law stated otherwise. The shareholder can authorize another person to attend the general assembly but he must not be one of the board members or the company's employees"

By that, CMA is continuing its efforts to protect investors in the capital market and allow them to practice all their rights in general assemblies no matter what is the percentage of their ownership in the company. These rights are all guaranteed and stated in the CML and its implementing regulations especially the Corporate Governance Regulations.