As part of the Capital Market Authority's efforts to develop the capital market in the kingdom of Saudi Arabia, and regulate and monitor the work and activities of entities subject to its supervision and control through the issuance of implementing regulations and rules governing the Saudi market, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424 H, and the Companies Law issued by the Royal Decree Number (M/3) Dated 28/1/1437H, the CMA Board has issued its Resolution Number (8-127-2016) dated 16/1/1438H corresponding to 17/10/2016G which includes the adoption of the Regulatory Rules and Procedures issued pursuant to the Companies Law Relating to Listed Joint Stock Company, and its Guidance Note, and to be implemented from the date of its publication.
The purpose of these Rules and Procedures is to regulate many important aspects related to the companies listed on the Saudi Stock Exchange, notably remunerations of board members, holding of general and special assembly meetings and shareholders’ participation therein through contemporary technology, buy-back of the company’s shares, issuance of preferred shares, in addition to pledging of shares, and dividend distribution to shareholders. When drafting these rules and Procedures, international best practices and standards have been taken into consideration in order to achieve the desired goals, as well as concerned and interested parties comments and observations.
These Rules and Procedures were prepared as a part of the coordinating efforts of the CMA and the Ministry of Commerce and Industry, and in light of the CMA initiatives to develop the capital market in the Kingdom.
the Regulatory Rules and Procedures issued pursuant to the Companies Law can be viewed on CMA’s website via the following link:
