Complementing the government’s role in enacting legislation that contributes to consolidating the principles of governance within companies and commercial establishments, and facilitating legislation related to medium and small enterprises, the new corporate law has been issued.
Below we review the most important features and advantages that the system gives to companies:
- A new form of company has been created under the name (Simplified Joint Stock Company).
- This new form of companies enables them to provide the requirements of entrepreneurship and contribute to the growth of venture capital.
- Organizing the provisions related to companies of all kinds: “commercial, non-profit, and professional” in a unified legislative document.
- Allowing the issuance of negotiable debt instruments or financing instruments for limited liability companies.
- Removing restrictions at all stages (incorporation, practice, and exit), on company names, and on stock trading.
- Allowing the conclusion of a charter in the family business incorporation contract, which contributes to the organization of ownership in family businesses, in terms of governance, management, work policies, employment of relatives and distribution of company profits.
- Allowing the distribution of interim or annual profits to shareholders and partners.
- Availability of new options for issuing shares of specialization for employees in order to contribute to attracting competencies.
- Developing provisions related to transformation and merger between companies, and saluting the option of dividing the company into two or more companies.
- The possibility of implementing procedures electronically by submitting applications for incorporation, attending associations, and voting on decisions through various technical means.
- Developing the provisions for liquidating companies, and facilitating their conduct, within the bankruptcy system.
