On the June 28, 2022, the Saudi Council of Ministers approved the new Kingdom of Saudi Arabia Companies Law, and the final approved version of the law was issued on July 4, 2022. The new Companies Law allows for the introduction of a family charter in the articles of association to regulate ownership, governance, management, work policy, relatives’ employment, and dividends distribution in family-owned companies. This new law marks a key milestone and a monumental shift in the ability of family firms to navigate issues of ownership, governance and succession through legal frameworks that are designed to enhance their sustainability, longevity, competitiveness, and agility.
Session Description: This session, led by regional experts, will help family business leaders understand how the new companies law supports long-term sustainability and stability of family-owned businesses, as the family grows, and succession events inevitably occur.
Key Learning Outcomes:
Participants will develop a stronger understanding of how the new companies’ law in KSA impacts family firms and creates new opportunities with regards to succession, formalization of the family charter and different classes of shares
Omar AlHumaid, Senior Counsel – Al Tamimi & Company