«Kada» association reviews the differences between the new and old companies system in Asharqia Chamber.

​

The new system is in the process of distributing profits and losses with Sharia controls.
The «Kada» Association reviews the differences between the new and old system in Asharqia Chamber.


            In an extended meeting of the owners of companies, lawyers and specialists, on Wednesday, May 10, 2017,  reviewed the Saudi Scientific Judicial «Kada», in the main headquarters of Asharqia Chamber, the most prominent differences between the new and old companies system.
Dr. Yousif bin Muhammed Al Qassim, the associate professor in the upper Judicial Institute, who was the guest of the meeting, that was chaired by Dr. Khalid Al Saleh, Chairman of Lawyers Committee and Legal Advisors in the Chamber, in the presence of Dr. Abdul Wahed Bin Hamad Al Mazroui, and the old will facilitate understanding of the system and the short time to handle it, as well as clarifying and the purpose of modifying the system.
Al Qassim added that the new system has provided positive handling of many old items, including, the distribution of profits and losses by the rules of legality and facilitated the process of advertising to be electronic. He pointed that the new system the Memorandum of Association will be presented on the Ministry electronic website, in violation of the old system of directors or members of the Board of Directors and the modifications.
Al Qassim said that the new system, especially regarding the company and the solidarity of the extension of the circle of proof of loans, by proving the executive contract without a judicial ruling, and also promoting the chances of the continuation of the company when there is an inappropriate partner, allowing the majority of partners to request its removal if there are legitimate reasons, thus, but he approved the agreement to exempt the new partner from responsibility for the previous debt, provided a positive degree of the former regime, which he held the responsibility at all but he did not resolve by exempting him at all.
With regard to the differences in the simple recommendation company, Al Qassim explained that the new system has added several advantages, including the statement of the status of the recommending partner and that it does not acquire the trait of the trader, and it facilitated the method of waiver of the share and make the asset the survival of the company and not its extinction upon the death of the partner, Reasons.
Al Qasim said that the new system was narrowed by the conflict of interest between the partner and the company. It also improved the process of governance and disclosure in the company accounts, and  the new system did not cancel the control of  the survival of the collective partner, In the limited liability company, the new system was not governed by the company as soon as the number of partners exceeded the specified amount, but organized the process of converting it into a joint stock company within a limited period, pointing that it made the company managers responsible personally for the company obligations of the amount of capital along with the name of the company.
Al Qasim added that the new system in the limited liability company limited the minimum capital to be sufficient to achieve its purpose and also organized the most work of the assembly, including the agenda of the assembly.
Al Qassim talked about the advantages of the new modifications in the joint stock company, noting that they facilitated the formal procedures such as facilitating the general assembly for the next time, encouraging investment by reducing the minimum capital and the number of partners, as well as deepening the institutional work by adding powers to associations and boards of directors, such as the Capital Market for listing  companies, and finally reducing financial corruption by setting a higher limit on the amount of bonuses.
At the end of the meeting, Dr. Abdul Wahed bin Hamad Al Mazroui, Head of the Eastern Region Association, presented a memorial shield to the Associate Professor of  the upper Judicial Institute, Dr. Yousef Bin Muhammed Al Qasim and Ashar              qia Chamber for hosting the meeting.