When Should a Sole Establishment Be Converted into a Company? Legal Benefits of Conversion
A sole establishment may be the right choice when starting a business. However, as the business grows and its responsibilities expand, converting it into a company may become a more suitable option from both a legal and commercial perspective. Under the Saudi Companies Law, owners of sole establishments may transfer the establishment’s assets to any […]
Objecting to Partners’ Resolutions: Why Should It Be Documented?
The issuance of a partners’ resolution does not necessarily end a partner’s right to object. A partner may be entitled to seek the annulment of a resolution before the competent court if it was issued in violation of the Saudi Companies Law or the company’s Articles of Association. In a limited liability company, the law […]
Commercial Contract Review Before Signing: 5 Key Legal Points
Signing a commercial contract does not mean the end of negotiations; rather, it marks the beginning of the parties’ commitment to the rights and obligations set out in the agreement. For this reason, every provision should be reviewed carefully to ensure that the scope of the contract, each party’s obligations, the consideration, payment terms, contract […]
Company Manager’s Liability for Exceeding His Authority
Being a company manager does not give a person unlimited authority to act on behalf of the company. A manager must exercise their duties within the scope of the authority granted to them and in accordance with the Companies Law, the company’s Articles of Association or bylaws, and the resolutions governing its management. The applicable […]