General Causes of Corporate Dissolution: A Comparative Study between the Saudi Corporate Law of 1443 AH and the Saudi Corporate Law of 1437 AH

Abstract

Abstract:

This study begins by addressing the general concept of a company and the concept of company dissolution. The study systematically examines the general causes of dissolution through six key topics, organized as follows:

        Expiration of the company’s specified duration.1.

.       2.Agreement among partners to dissolve the company prior to the expiration of its duration.

        Issuance of a judicial ruling dissolving the company  3. 

         4.Fulfillment or impossibility of achieving the company’s foundational purpose.

.       Transfer of all shares or equity interests to a single partner. 5

.       Merger of the company with another company. 6.

The study concludes with key findings and recommendations. It highlights the differences between the new Companies Law of 1443 AH and the previous Companies Law of 1437 AH. While the previous law identified six general causes for dissolution, the new law limits these to only three, omitting three causes without further discussion. It examines all general causes of dissolution, including those in both the former and current laws, analyzing the impact of the omitted causes from the new law, assessing their practical applicability, and determining whether they still constitute general causes for dissolution despite their exclusion from the current law. The study also evaluates whether the new law appropriately excluded these causes, potentially reclassifying them as specific, rather than general, causes for dissolution.