CMA LAW: Circular No. (7) of 2017 Regarding General Assemblies

"Circular to All Listed Companies and Licensed Persons"

Chairman of the Board of Directors 

Greetings,

As the Capital Markets Authority is keen that the general assemblies’ meetings are held on the specified times, and in order to lessen the approvals and procedures necessary for holding such assemblies’ meetings, and in execution of CMA Board of Commissioners’ Resolution No. (C.B.C/9-15 of 2017); as of 1/6/2017, the agendas of the ordinary and extraordinary general assemblies’ meetings of the mentioned companies shall not be perused by the CMA for approval. Additionally, as of the mentioned date, the CMA shall cease issuing approval letters for the agendas of the ordinary and extraordinary general assemblies of listed companies and licensed persons.

However, such companies shall continue notifying the CMA of the assembly’s agenda and the time and venue of the meeting, and attach all documents relevant to the items listed on the assembly’s agenda at least ten days before the date of holding the assembly’s meeting. They shall also continue providing the CMA with an endorsed copy of the minutes of the ordinary and extraordinary general assembly’s meeting – as the case maybe – and the notation certificate in the commercial record which include any amendments that may have occurred on the company’s contract within a maximum of two weeks from the date of holding the meeting.

Thus, the CMA’s prior consent shall be obtained, along with approvals of other supervisory entities, regarding the items perused by the general assembly which the Companies’ Law and its Executive Bylaws, and the CMA’s Law and its Executive Bylaws stipulate the necessity of obtaining CMA’s prior approval for such items before being perused by the assembly.          

        
Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners 

Issued on: 25/4/2017   

Copy of the Official Document

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