The impact of SAGIA's application of article 154 - the concept of LLCs by a single shareholdero
Type
E-journal
Date
26 Oct 2016
Jurisdiction
Saudi Arabia
Taxonomy
Companies & Corporate Bodies, General Company Law & Business Entities
Copyright
LexisNexis
Relevant company
Clyde & Co
Legal reference
Article 154 of Saudi Arabia Cabinet Decision No. 30/1437
Analysis
Following the issuance of the new Companies Law dated 28/01/1437H (corresponding to 10 November 2015G (the "Companies Law") there was concern around its effect on new and existing companies and in particular the entities that are licensed by the Saudi Arabian General Investment Authority ("SAGIA").
SAGIA has recently applied article (154) of the Companies Law, which indicates that the limited liability company can be formed by a single person (the "Article"). SAGIA has applied the Article in relation to new and existing investments through converting any limited liability company ("LLC") with more than one shareholder or any individual establishment to a limited liability company with a single shareholder.