What are the obligations of the director of the solidarity company?
A solidarity company is a company that consists of two or more partners, in which the partner is personally responsible for all his private funds and in solidarity with the rest of the partners for the company’s debts and obligations, and the partner in it acquires the status of a trader.
According to the Saudi Companies Law, the partners in a solidarity company may appoint one or more managers in the articles of incorporation of the company or in an independent contract to manage the company, whether from among the partners themselves or from others, and the companies’ system has clarified that in the case of appointing more than one manager for the company without specifying the jurisdiction of each one And without stating that any of them may not be alone in the management, each of them had the right to individually perform any act of management, provided that the rest of the managers object to the work before its completion, and in this case the lesson will be the majority of the opinions of the managers, and if the opinions are equal, the matter must be presented The partners have to make a decision about it.
The director of the solidarity company undertakes all the management work and actions that fall within the purpose of the company, and represents it before the judiciary, arbitration bodies and others, unless the company’s articles of incorporation explicitly restrict his authority, and in all cases the company is bound by every act that the manager performs in its name and within the limits of its purpose, unless it is from He dealt with him in bad faith, and the manager may not undertake business that deviates from the purpose of the company except by a decision of the partners or by an explicit provision in the company’s articles of incorporation, such as donations, resorting to arbitration and disposing of the real estate of the company.
It is also not permissible for the director of a solidarity company to contract for his own account with the company except with the permission of the partners to be issued in each case separately, and he is not permitted to carry out an activity of the type of the company’s activity, nor to be a partner, manager, or member of the board of directors in a competing company or an owner of shares Or shares representing an influential percentage in another company that practices the same activity except with the consent of all partners, and if the manager breaches this obligation, the company has a claim for compensation.
The director of the solidarity company shall be responsible for compensating the damage that befalls the company, partners or others due to his violation of the terms of the company’s incorporation contract, or because of his negligence or failure to perform his work, and every agreement on the other is considered as if it did not exist.
It is not permissible for the partner manager appointed in the articles of association of the company to retire from management except for an acceptable reason, otherwise he will be liable for compensation, and his retirement will result in the dissolution of the company, unless the articles of incorporation stipulate otherwise.
The director other than the partner appointed in the company’s articles of incorporation may resign the management, provided that this is at an appropriate time, and that he informs the partners about it before the decision to retire takes effect within a reasonable period, otherwise he will be liable for compensation, and his retirement does not result in the dissolution of the company, unless the articles of incorporation stipulate. Otherwise.
The director of the company appointed by a separate contract, whether a partner or not, may retire from management, provided that this is at an appropriate time, and that he informs the partners about it within a reasonable period before the decision to retire takes effect, otherwise he will be liable for compensation, and his retirement does not result in the dissolution of the company.
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Establishing a solidarity company in Saudi Arabia
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Establishing a limited partnership company in Saudi Arabia
Establishing a joint stock company in Saudi Arabia
Establishing a one-person company in Saudi Arabia
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