Saudi Cabinet approves to exclude SABIC from few Companies Law provisions

Saudi Arabia’s approved on Tuesday the exclusion of Saudi Basic Industries Corp. (SABIC) from the provisions stipulated in paragraph 3 of Article 76 and paragraph 1 of Article 133 of the Companies Law.

The exception includes allowing SABIC’s extraordinary general assembly to include a number of provisions, detailed in the Cabinet’s decision, within the company’s bylaws, Saudi Press Agency (SPA) reported.

According to data compiled by Argaam, paragraph 3 of Article 76 of Companies Law limits the remuneration or financial or in-kind privileges for a member of the board of directors to a maximum of SAR 500,000 annually.

Paragraph 1 of Article 133 makes it compulsory for the ordinary general assembly to appoint an auditor or more, from amongst the licensed ones, provided that the duration of his appointment shall not exceed 5 consecutive years. The new law allows whoever completed such duration to be re-appointed after 2 years of its completion.