The Merging of Corporate Governance Regulation under the New Saudi Companies Law: Minority Shareholders' Rights

Abstract

Saudi Arabia’s recent implementation of a comprehensive regulation marks a significant milestone in its pursuit of enhancing corporate governance standards across its industries. This law introduces stricter requirements for companies to ensure transparency, accountability, and ethical practices in their operations, aligning the Kingdom of Saudi Arabia with international best practices. The paper analyzes the implications of recent legislative changes and regulatory frameworks on corporate governance practices, identifying key challenges and recommending solutions for stakeholders. Additionally, protecting minority shareholders’ rights is crucial for building investor confidence and ensuring fair treatment within corporate structures. Minority shareholders often face challenges in influencing company decisions due to their limited ownership stakes. This paper concludes with policy recommendations to further strengthen shareholder protection and ensure the effective implementation of compliance standards.