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The Legal Services Every Business Needs
A business can’t operate effectively without contracts. Contracts provide legal protections, guarantees, resources, employees, partnerships, and more. They also never stop being important. As you continue to operate, you’ll need to create, review, and update more and more contracts. To keep up with these contracts and your legal status, you need contract and agreement attorneys.
If you’re a joint stock company seeking to expand or start your business in the Saudi Arabian market, the attorneys at Khalaf Bandar Law Firm can help you. We have experience in Saudi business law, aiding new companies that need to protect themselves and their success legally.
What is Considered a Joint Stock Company in Saudi Arabia?
Joint stock companies are a type of business owned by shareholders. These shareholders are individuals who own “shares,” or a portion of the company that they have invested in. Joint stock creates a system where there’s a metaphorical middleman between the owners and the business. This allows owners to come in, invest, profit, and then leave the company throughout its lifecycle.
Here are some key characteristics and benefits of a joint stock company that aren’t offered by other types of business ownership:
Limited Liability
Shareholders have less liability in the business in the way a private owner would. This means that their assets are protected from the company’s financial losses and legal challenges. A shareholder’s liability is limited directly to what they put into the company.
Separate Legal Entity
A joint stock company is recognized as a separate legal entity from its owners. This is important when the company owns the property, enters into contracts, or is sued. For example, the shareholders do not have a personal responsibility for any property the company owns.
Transferability of Shares
As stated, with a joint stock company, it’s much easier to transfer ownership. The shares are the actual owners of the company, and people purchase shares. Shares are easier to trade the fewer you have, and even if you have a large stake in the company, you can offload your shares at any time. Shares make it easier for the joint stock company to attract investors and for shareholders to liquidate their investments when needed.
Perpetual Succession
Joint stock companies allow for ownership of companies to live after a shareholder dies, goes bankrupt, or needs to sell their shares abruptly. The shares can either go to the deceased shareholder’s next of kin or back to the company. This protects the company and ensures stability when issues arise among shareholders.
Raised Capital
Stock exchanges allow shareholders and/or companies to sell portions of their shares to raise capital. This must be done through Tadawul, the sole entity in Saudi Arabia authorized to act as the Securities Exchange.
Group Management
Joint stock companies are usually controlled by a board of directors that the shareholders elect. This ensures that all shareholders can have a role in the management of the company.
Types of Contracts and Agreements
There are several types of contracts and agreements your business may need that the attorneys at Khalaf Bandar Law Firm can help you with. This includes, but is not limited to:
- Draft Contracts
- Audit Contracts
- Contract and Notification Management
- Contract Termination
- Technology Transfer Contracts
Our Joint Stock Legal Services
Joint stock companies require a wide range of legal services to ensure their legal compliance, protect their business interests, and maintain their operations. These legal services include:
Corporate Governance
It’s important to consider legal advice and help when structuring your business’s board of directors, shareholder meetings, and other aspects of governance. This will ensure that you comply with all relevant laws and regulations.
Regulatory Compliance
Our attorneys offer assistance in helping the business comply with the securities regulations. These regulations bound all publicly traded companies in Saudi Arabia. Legal actions a business must complete to comply include preparing and filing required disclosures and reports with regulatory bodies.
Intellectual Property Protection
We can handle the protection and maintenance of patents, trademarks, copyrights, and other intellectual property the business holds or licenses to safeguard your company’s IP and brand identity.
Employment Law
Our attorneys can represent your business when writing and reviewing employment contracts, employee benefits, labor disputes, and compliance with employment laws to manage the workforce effectively while minimizing legal risks.
Mergers and Acquisitions
We provide legal support for the due diligence process, negotiation, drafting of agreements, and navigation of regulatory approvals in the case of mergers, acquisitions, or divestitures.
Taxation
We offer legal advice on corporate tax planning, compliance with tax laws, and handling of tax disputes to optimize tax liabilities and reduce exposure to penalties.
Dispute Resolution
Our attorneys provide legal representation in commercial disputes through litigation, arbitration, or mediation. We can help you resolve conflicts with partners, competitors, regulators, or other parties.
Securities Law
By definition, joint stock companies are publicly traded companies and public trade shares. We offer legal advice on issuing shares, offering bonds, and complying with stock exchange regulations.
Contact Khalaf Bandar Law for Legal Support For Your Company
Access to comprehensive legal support is crucial for joint stock companies to navigate the regulatory landscape of Saudi Arabia, mitigate risks, and capitalize on opportunities in a legally sound manner. We offer you that access through our legal services. For more information on what other services Khalaf Bandar Law Firm offers and how we can help you, contact us today.