Article 6
Effective from 2019-12-10 - Dec 09 2019
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| 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. | The founding shareholder must have the sufficient financial solvency and shall not have breached any financial obligations towards his/her creditors nor there is an indication that he cannot continuously comply with his financial obligations towards his/her creditors. | |
| b. | The founding shareholder must not have violated any of the provisions or regulations of the Capital Market Law, the Banking Control Law, the Cooperative Insurance Companies Control Law, Finance Laws, or any other laws or regulations inside or outside Saudi Arabia. | |
| c. | The founding shareholder must not have declared bankruptcy or entered into a general settlement with any creditor. | |
| d. | The founding shareholder must not have been sentenced of a breach of trust offense, 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-objection letter from SAMA. | |
| e. | The founding shareholder have not requested to withdraw license application to carry out finance activity in the last two years. | |
| f. | The founding shareholder must not have a previous application to carry out finance activity refused by SAMA during the last five years. | |
| 2. | A non-objection letter from SAMA is required before acquiring (5%) or more of the consumer microfinance company's capital or voting rights. | |