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Questions and Answers
Joint stock company must have a minimum authorized capital of 500k riyals.
Joint stock company must have a minimum authorized capital of 500k riyals.
True (A)
The liability of the shareholder in a joint stock company is unlimited.
The liability of the shareholder in a joint stock company is unlimited.
False (B)
The authorized capital of a joint stock company is the total value of shares owned by shareholders.
The authorized capital of a joint stock company is the total value of shares owned by shareholders.
False (B)
The issued capital of a joint stock company can exceed the authorized capital.
The issued capital of a joint stock company can exceed the authorized capital.
The AOA of a joint stock company must include the company's term.
The AOA of a joint stock company must include the company's term.
The paid up amount of a joint stock company must be at least one quarter of the authorized capital.
The paid up amount of a joint stock company must be at least one quarter of the authorized capital.
The management and the number of board members must be mentioned in the AOA of a joint stock company.
The management and the number of board members must be mentioned in the AOA of a joint stock company.
True or false: A shareholder representing at least 3% of the company’s capital can ask the court to inspect the company if the conduct of board members or auditor is suspicious.
True or false: A shareholder representing at least 3% of the company’s capital can ask the court to inspect the company if the conduct of board members or auditor is suspicious.
True or false: Shares can only be issued at a higher value than their nominal value.
True or false: Shares can only be issued at a higher value than their nominal value.
True or false: The majority shareholder has the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same conditions.
True or false: The majority shareholder has the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same conditions.
True or false: The company losses if the losses reach half of the issued capital.
True or false: The company losses if the losses reach half of the issued capital.
True or false: In a Limited Liability Company, the liability of the owners or partners is independent of the financial liability of the company.
True or false: In a Limited Liability Company, the liability of the owners or partners is independent of the financial liability of the company.
True or false: If the company is established by one person, the owner will not have the power & authorities of the manager and board of directors.
True or false: If the company is established by one person, the owner will not have the power & authorities of the manager and board of directors.
True or false: The Memorandum of Association (MOA) must include the names of the company's employees.
True or false: The Memorandum of Association (MOA) must include the names of the company's employees.
Partners can authorize other partners to attend on their behalf unless if the AOA states otherwise
Partners can authorize other partners to attend on their behalf unless if the AOA states otherwise
The company is liable for the manager’s acts that fall within the company’s objectives
The company is liable for the manager’s acts that fall within the company’s objectives
The GA will be held based on the MOA, at least once a year, 6 months before the company’s financial year ends
The GA will be held based on the MOA, at least once a year, 6 months before the company’s financial year ends
If the equity shares are held by several people, the company can suspend their rights until they choose one to be the sole holder
If the equity shares are held by several people, the company can suspend their rights until they choose one to be the sole holder
Non-managing partners can submit opinions to partners, and can request documents and records twice a year
Non-managing partners can submit opinions to partners, and can request documents and records twice a year
The partners holding all the shares may hold the GA regardless of the prior conditions
The partners holding all the shares may hold the GA regardless of the prior conditions
Partners have the right to participate in discussions and voting, and have a number of votes based on the number of shares he has
Partners have the right to participate in discussions and voting, and have a number of votes based on the number of shares he has
The GA will determine how profits are distributed to the partners after deduction if needed
The GA will determine how profits are distributed to the partners after deduction if needed
Managers or auditor or partners can request the meeting, the notification must be sent 21 days before the meeting
Managers or auditor or partners can request the meeting, the notification must be sent 21 days before the meeting
Board members can serve for up to 6 years without re-election unless specified in the AOA.
Board members can serve for up to 6 years without re-election unless specified in the AOA.
Board members are not required to disclose their interest in business transactions.
Board members are not required to disclose their interest in business transactions.
Board members can be held liable for damages from business transactions even if they explicitly object during the meeting.
Board members can be held liable for damages from business transactions even if they explicitly object during the meeting.
Shareholders are not allowed to assign someone to represent them at GA meetings.
Shareholders are not allowed to assign someone to represent them at GA meetings.
Extraordinary GA meetings have the power to amend AOA without exceptions.
Extraordinary GA meetings have the power to amend AOA without exceptions.
Decisions at extraordinary meetings require a two-thirds majority vote.
Decisions at extraordinary meetings require a two-thirds majority vote.
75% of shareholders with voting rights are required for all capital decisions.
75% of shareholders with voting rights are required for all capital decisions.
What is the minimum amount that the paid up capital of a joint stock company must be?
What is the minimum amount that the paid up capital of a joint stock company must be?
Which of the following must be mentioned in the Articles of Association (AOA) of a joint stock company?
Which of the following must be mentioned in the Articles of Association (AOA) of a joint stock company?
What is the minimum authorized capital required for a joint stock company?
What is the minimum authorized capital required for a joint stock company?
How often must the General Assembly (GA) be held according to the text?
How often must the General Assembly (GA) be held according to the text?
What is the liability of a shareholder in a joint stock company?
What is the liability of a shareholder in a joint stock company?
What can be done with the issued capital of a joint stock company if it's paid in full?
What can be done with the issued capital of a joint stock company if it's paid in full?
What should be included in the AOA of a joint stock company according to the text?
What should be included in the AOA of a joint stock company according to the text?
In a Limited Liability Company (LLC), who can be appointed as a manager?
In a Limited Liability Company (LLC), who can be appointed as a manager?
When can the partners appoint a new manager in an LLC if a vacancy arises?
When can the partners appoint a new manager in an LLC if a vacancy arises?
What is the frequency requirement for holding the General Assembly (GA) meeting in an LLC?
What is the frequency requirement for holding the General Assembly (GA) meeting in an LLC?
What rights do non-managing partners have in an LLC?
What rights do non-managing partners have in an LLC?
How is capital mentioned in an LLC?
How is capital mentioned in an LLC?
What happens if equity shares in an LLC are held by several people?
What happens if equity shares in an LLC are held by several people?
Who determines how profits are distributed to partners in an LLC?
Who determines how profits are distributed to partners in an LLC?
What is required for calling a General Assembly meeting in an LLC?
What is required for calling a General Assembly meeting in an LLC?
Who has the right to represent an LLC Infront of courts and third parties?
Who has the right to represent an LLC Infront of courts and third parties?
What is the maximum term of office for board members in a joint stock company?
What is the maximum term of office for board members in a joint stock company?
Under what conditions can board members be dismissed in a joint stock company?
Under what conditions can board members be dismissed in a joint stock company?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What percentage of shareholders with voting rights is required for certain capital decisions in a joint stock company?
What percentage of shareholders with voting rights is required for certain capital decisions in a joint stock company?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
What must board members disclose regarding business transactions in a joint stock company?
What must board members disclose regarding business transactions in a joint stock company?
What percentage of shareholders with voting rights is required for amending the Articles of Association (AOA) in extraordinary General Assembly (GA) meetings?
What percentage of shareholders with voting rights is required for amending the Articles of Association (AOA) in extraordinary General Assembly (GA) meetings?
Which type of shares must be registered to the holder’s name in a joint stock company?
Which type of shares must be registered to the holder’s name in a joint stock company?
What happens if the losses of a joint stock company reach half of the issued capital?
What happens if the losses of a joint stock company reach half of the issued capital?
In a joint stock company, what can be done to lower the capital?
In a joint stock company, what can be done to lower the capital?
What is required in the Memorandum of Association (MOA) of a Limited Liability Company (LLC)?
What is required in the Memorandum of Association (MOA) of a Limited Liability Company (LLC)?
What rights do non-managing partners have in an LLC?
What rights do non-managing partners have in an LLC?
What is required before lowering the capital in a joint stock company?
What is required before lowering the capital in a joint stock company?
In a Limited Liability Company (LLC), who has the power & authorities of the manager and board of directors if it's established by one person?
In a Limited Liability Company (LLC), who has the power & authorities of the manager and board of directors if it's established by one person?
What is the minimum required capital for a joint stock company?
What is the minimum required capital for a joint stock company?
What is the minimum required paid up amount for the capital of a joint stock company?
What is the minimum required paid up amount for the capital of a joint stock company?
Which of the following must be mentioned in the Articles of Association (AOA) of a joint stock company?
Which of the following must be mentioned in the Articles of Association (AOA) of a joint stock company?
What is the maximum term for board members in a joint stock company?
What is the maximum term for board members in a joint stock company?
What percentage of shareholders with voting rights is required for certain capital decisions in a joint stock company?
What percentage of shareholders with voting rights is required for certain capital decisions in a joint stock company?
True or false: The company losses if the losses reach half of the issued capital.
True or false: The company losses if the losses reach half of the issued capital.
What can be done with the issued capital of a joint stock company if it's paid in full?
What can be done with the issued capital of a joint stock company if it's paid in full?
What is the maximum term of office for board members in a company?
What is the maximum term of office for board members in a company?
In a joint stock company, what percentage of shareholders with voting rights is required for certain capital decisions?
In a joint stock company, what percentage of shareholders with voting rights is required for certain capital decisions?
When can board members and members with interests be held liable for damages from business transactions?
When can board members and members with interests be held liable for damages from business transactions?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What is the liability of board members and members with interests for damages from business transactions?
What is the liability of board members and members with interests for damages from business transactions?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
What is the minimum authorized capital required for a joint stock company?
What is the minimum authorized capital required for a joint stock company?
In a joint stock company, what can be done to lower the capital?
In a joint stock company, what can be done to lower the capital?
What is required before lowering the capital in a joint stock company?
What is required before lowering the capital in a joint stock company?
What happens if the losses of a joint stock company reach half of the issued capital?
What happens if the losses of a joint stock company reach half of the issued capital?
What rights do non-managing partners have in a Limited Liability Company (LLC)?
What rights do non-managing partners have in a Limited Liability Company (LLC)?
Which type of shares must be registered to the holder’s name in a joint stock company?
Which type of shares must be registered to the holder’s name in a joint stock company?
What is required in the Articles of Association (AOA) of a joint stock company?
What is required in the Articles of Association (AOA) of a joint stock company?
What is required for calling a General Assembly meeting in an LLC?
What is required for calling a General Assembly meeting in an LLC?
In a Limited Liability Company (LLC), who can be appointed as a manager?
In a Limited Liability Company (LLC), who can be appointed as a manager?
What must be mentioned in the Memorandum of Association (MOA) of a Limited Liability Company (LLC)?
What must be mentioned in the Memorandum of Association (MOA) of a Limited Liability Company (LLC)?
What is required for calling a General Assembly meeting in an LLC?
What is required for calling a General Assembly meeting in an LLC?
What happens if equity shares in an LLC are held by several people?
What happens if equity shares in an LLC are held by several people?
What is required in the Articles of Association (AOA) of a joint stock company?
What is required in the Articles of Association (AOA) of a joint stock company?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
Who chairs shareholder General Assembly (GA) meetings in a joint stock company?
What is the maximum term of office for board members in a joint stock company?
What is the maximum term of office for board members in a joint stock company?
What rights do non-managing partners have in an LLC?
What rights do non-managing partners have in an LLC?
What is the minimum required capital for a joint stock company?
What is the minimum required capital for a joint stock company?
What is the minimum amount that the paid up capital of a joint stock company must be?
What is the minimum amount that the paid up capital of a joint stock company must be?
What must be mentioned in the Articles of Association (AOA) of a joint stock company?
What must be mentioned in the Articles of Association (AOA) of a joint stock company?
What happens if the losses of a joint stock company reach half of the issued capital?
What happens if the losses of a joint stock company reach half of the issued capital?
What is required before lowering the capital in a joint stock company?
What is required before lowering the capital in a joint stock company?
What is the maximum term for board members in a joint stock company?
What is the maximum term for board members in a joint stock company?
Which type of shares must be registered to the holder’s name in a joint stock company?
Which type of shares must be registered to the holder’s name in a joint stock company?
What is the maximum term of office for board members in a joint stock company?
What is the maximum term of office for board members in a joint stock company?
In a joint stock company, what percentage of shareholders with voting rights is required for certain capital decisions?
In a joint stock company, what percentage of shareholders with voting rights is required for certain capital decisions?
What happens if board members and members with interests explicitly object during the meeting regarding damages from business transactions?
What happens if board members and members with interests explicitly object during the meeting regarding damages from business transactions?
What must board members disclose regarding business transactions in a joint stock company?
What must board members disclose regarding business transactions in a joint stock company?
What is required for calling Extraordinary General Assembly (GA) meetings?
What is required for calling Extraordinary General Assembly (GA) meetings?
What is the liability of board members and members with interests for damages from business transactions?
What is the liability of board members and members with interests for damages from business transactions?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What is the quorum requirement for ordinary General Assembly (GA) meetings in a joint stock company?
What must the board of directors do if the company's losses reach half of the issued capital?
What must the board of directors do if the company's losses reach half of the issued capital?
What can a majority shareholder do in a joint stock company?
What can a majority shareholder do in a joint stock company?
What is required before lowering the capital in a joint stock company?
What is required before lowering the capital in a joint stock company?
What is true about shares in a Joint Stock Company (JSC)?
What is true about shares in a Joint Stock Company (JSC)?
What is true about a Limited Liability Company (LLC)?
What is true about a Limited Liability Company (LLC)?
'Redeemable' shares in a Joint Stock Company (JSC) refer to shares that:
'Redeemable' shares in a Joint Stock Company (JSC) refer to shares that:
Which statement regarding the appointment of LLC managers is most accurate?
Which statement regarding the appointment of LLC managers is most accurate?
When can partners appoint a new manager in an LLC if a vacancy arises?
When can partners appoint a new manager in an LLC if a vacancy arises?
What rights do non-managing partners have in an LLC?
What rights do non-managing partners have in an LLC?
What is required for calling a General Assembly meeting in an LLC?
What is required for calling a General Assembly meeting in an LLC?
What happens if the equity shares are held by several people in an LLC?
What happens if the equity shares are held by several people in an LLC?
What is mentioned in the Memorandum of Association (MOA) regarding management of an LLC?
What is mentioned in the Memorandum of Association (MOA) regarding management of an LLC?
What is determined by the General Assembly (GA) in an LLC?
What is determined by the General Assembly (GA) in an LLC?
When can board members dismiss managers in an LLC?
When can board members dismiss managers in an LLC?
What rights do managing partners have in terms of appointment and dismissal of managers in an LLC?
What rights do managing partners have in terms of appointment and dismissal of managers in an LLC?
Study Notes
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Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
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Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
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Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
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Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
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Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
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Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
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Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
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Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
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Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
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Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
-
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
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Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
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Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
-
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
-
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
-
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
-
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
-
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
-
Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
-
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
-
Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
-
Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
-
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
-
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
-
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
-
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
-
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
-
Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
-
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
-
Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
-
Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
-
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
-
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
-
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
-
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
-
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
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Description
Test your knowledge of corporate governance and shareholder rights with this quiz. Learn about the responsibilities of board members, auditors, and shareholders in ensuring transparency and accountability within a company.
