Effective from Feb 24 2013 - Mar 07 2013 To view other versions open the versions tab on the right
1.
Each founding shareholder must comply with the Sharia and legal competence requirements, and the fit and proper requirements stipulated by SAMA. In particular the following:
a.
He must not have been convicted of a violation of any of the provisions of a criminal law, the Banking Control Law, the Capital Market Law, the Co-operative Insurance Companies Control Law or its regulations, the Finance Laws or its regulations, or any other laws or regulations inside or outside the Kingdom of Saudi Arabia;
b.
He must not have been declared bankruptcy or entered into a general settlement with any creditor;
c.
He must not have been sentenced of a breach of trust offence, unless rehabilitated and at least 10 years have passed since the last sanction for this crime has been completed and on the condition of obtaining a non-objecting letter from SAMA;
d.
Have not requested to withdraw license application to carry out Finance Activity in the last two years;
e.
He must not have a previous application to carry out Finance Activity refused by SAMA during the last five years; and
f.
He must have the sufficient financial solvency and shall not have breached any financial obligations towards his creditors nor there is an indication that he cannot continuously comply with his financial obligations towards his creditors.
2.
In case of a founding shareholder or an owner of the Qualifying Interest committing a prejudice to the Sharia or legal competence, or solvency stipulated by SAMA; SAMA may at any time band them from the right to vote on the decisions of the Finance Company or require receiving a written non-objection before practicing this right in order to preserve the integrity of the performance of the Finance Company, apply the principles of governance and protect the interests of stakeholders of the Finance Company.
3.
A written non-objecting letter from SAMA is required prior to the acquisition of any shares in a Finance Company that is not publically traded in the Saudi Stock Exchange “Tadawul”, or the acquisition of a Qualifying Interest in a Finance Company that is publically traded in the Saudi Stock Exchange “Tadawul”, and the acquirer of such shares shall be subject to the provisions of this Article in both cases.
4.
If the founding shareholder or that who intends to acquire shares in the Finance Company is an entity, the provisions of this Article shall apply on any who owns (5%) or more of the capital or of the right to vote in that entity.
