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Amended articles of association
"I need amended articles of association to reflect a change in board structure, increasing directors from 5 to 7, and to update quorum requirements to 4 directors, effective from January 1, 2025."
What is an Amended articles of association?
Amended articles of association update and modify a company's original founding document in Saudi Arabia to reflect important changes in how the business operates. These changes might include new shareholder structures, different management roles, or revised business activities that align with the Kingdom's Companies Law.
Saudi companies often amend their articles when adding business activities, changing their corporate name, or adjusting their capital structure. Any amendments must be registered with the Ministry of Commerce and receive proper approval to be legally valid. These changes help businesses stay compliant while adapting to market needs and growth opportunities.
When should you use an Amended articles of association?
Companies need Amended articles of association when making significant changes to their business structure in Saudi Arabia. Common triggers include adding new shareholders, changing the company name, expanding business activities, adjusting capital amounts, or modifying management roles and responsibilities.
The Ministry of Commerce requires these amendments before implementing major operational changes. Filing amended articles protects your company's legal standing and ensures smooth business operations. Key moments to file include mergers, acquisitions, leadership transitions, or when expanding into new business sectors under Saudi commercial regulations.
What are the different types of Amended articles of association?
- Capital Increase Amendments: Modify share capital amounts, specify new share distributions, and update shareholder rights
- Management Structure Amendments: Change board composition, revise voting procedures, or update executive authority limits
- Business Activity Amendments: Add or remove permitted commercial activities under Saudi licensing requirements
- Ownership Transfer Amendments: Document changes in shareholder structure, including foreign ownership adjustments
- Corporate Identity Amendments: Update company name, headquarters location, or legal form within Saudi regulations
Who should typically use an Amended articles of association?
- Company Shareholders: Must approve and sign amendments, as their ownership rights and obligations are directly affected
- Board Members: Review and implement changes to governance structure and operational procedures
- Legal Counsel: Draft amendments, ensure compliance with Saudi law, and manage Ministry approvals
- Ministry of Commerce Officials: Review, approve, and register amended articles for legal validity
- Company Secretary: Maintains records, coordinates shareholder meetings, and handles documentation
- External Auditors: Verify capital-related changes and ensure financial compliance
How do you write an Amended articles of association?
- Original Documents: Gather current articles, commercial registration, and shareholder records
- Proposed Changes: Document specific amendments with clear rationale and supporting evidence
- Shareholder Approval: Obtain written consent from required majority per existing articles
- Financial Documentation: Prepare statements showing capital changes or financial restructuring
- Ministry Requirements: Check current Ministry of Commerce guidelines for amendment procedures
- Corporate Records: Update company books, meeting minutes, and resolutions supporting changes
- Translation: Prepare Arabic versions of all amendment documents
What should be included in an Amended articles of association?
- Amendment Declaration: Clear statement of which original articles are being modified
- Company Details: Updated name, registration number, legal form, and headquarters location
- Capital Structure: Revised share capital, number of shares, and ownership distribution
- Business Activities: Complete list of permitted commercial activities under Saudi law
- Management Framework: Updated board structure, voting rights, and decision-making processes
- Shareholder Rights: Modified provisions for meetings, profit distribution, and transfer restrictions
- Authentication Section: Space for official signatures, stamps, and Ministry attestation
What's the difference between an Amended articles of association and an Articles of Association?
Amended articles of association differ significantly from Articles of Association in several key aspects within Saudi Arabia's legal framework. While both documents govern company operations, their timing and purpose serve distinct functions in corporate governance.
- Timing and Creation: Articles of Association are the original founding document created when establishing a company, while Amended Articles come into play after the company exists and needs to modify its structure or operations
- Approval Process: Original Articles require initial Ministry registration and founding shareholder approval, whereas Amendments need existing shareholder votes and separate Ministry validation
- Scope of Changes: Original Articles establish the complete framework, while Amendments only modify specific sections while keeping other provisions intact
- Historical Record: Amendments must reference the original Articles and clearly document which provisions are being changed, creating a traceable history of corporate evolution
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