SCA 9/2019
The initial dispute involved whether shares in a company should be transferred to the claimant when it was claimed the sale had not been approved. A key issue was whether a plea complied with the Law of Advocacy.
Background
The claimants filed a case against defendants before the court. The claimants requested the court to order the defendant to sign and register a contract by which the shares of the defendants were transferred to the first claimant.
The legal representative of the defendants said that his clients did not want to sell their shares.
The court said that Article 161 of Saudi Arabia Royal Decree No. M3/1437 stipulated that one partner can cede his share in a company to another partner or to a third party in accordance with the contract of establishment. The court said that the contract under consideration stipulated that the transfer of the shares needed the approval of the relevant party.
Decision
The court dismissed the case.
The claimants made a plea to the court of appeal.
The court said that the plea made by the claimants did not comply with Article 200 of the Law of Advocacy.