Document background
Entrenched Articles of Association are utilized in Saudi Arabia when shareholders seek to establish enhanced protection for certain fundamental aspects of their company's governance structure. This document type is particularly relevant for joint ventures, family businesses, and companies with significant minority shareholders who require additional safeguards. The document must comply with the Saudi Companies Law 2015 and related regulations, including requirements for dual language (Arabic and English) preparation. It contains standard corporate governance provisions along with specially designated entrenched articles that require a higher voting threshold (often unanimity) for amendment. The document typically includes detailed provisions on share transfer restrictions, management structure, shareholder rights, and corporate governance procedures, with specific emphasis on protecting key provisions from easy modification.
