Shareholders Procedures

Sale of Shares

Sale of Shares Through Agreement

The following requirements shall be fulfilled:

  1. Both Buyer and Seller should present themselves or send their nominees with an Authority from the COURT to execute a sale agreement.

  2. The share value in the agreement shall neither be more than 10% nor less than 10% of market value.

  3. Seller shall produce the Original Share Certificate's

  4. Copy of buyer national identity card.

  5. Share Section verify the documents submitted and fill-in the Sale Agreement Form (Annex-SH01) to be signed by both parties along with two witnesses.

Sale of Shares Through Saudi Shares Registration Company (SSRC)
In case of sales of shares through SSRC, the SSRC shall submit required documents to effect the transfer (share certificate, buyer national I.D. and authorization from SSRC to transfer).

Shares as an Assignment

Any shareholder can give any number of his/her shares holding, as a gift to any of his/her family members only. The following documents shall be followed to effect Assignment Agreement.

  1. Assignment letter with full details of the proposed relative's and number of shares to be transferred to each with signature authenticated by one of the local bank, Chamber of Commerce or court.

  2. Original Certificate.

  3. Copy of national I.D. card

Shares through Inheritance

This procedure outlines the distribution of shares to heirs in case of a shareholder’s death. The heirs shall present the following documents to the Share Section;

  1. A Court Certificate showing the names of heirs of the deceased and the number of shares to be distributed to each as per Islamic Shariah or the person Authorized to distribute.

  2. Copy of Nationality Card for each heir and their full address.

  3. Original Shares Certificate

Shares Certificate Replacement

  1. PURPOSE
    This procedure outlines the replacement of share certificates, when change of Company’s capital.

  2. PROCEDURE
    Replacement of all shares certificates. After increase/decrease of share capital, all the old certificates have to be replaced by new certificates showing new Share Holding and the old are cancelled as advertised by SAFCO in the Local Newspapers.

Division of Share Certificate

  1. PURPOSE
    This outlines the procedure to be followed when a shareholder wishes to divide his/her shares in to many portions.

  2. PROCEDURE
    The Shareholder, who wish to divide his/her shares shall send a written request to Treasury & Shares Dept., stating the numbers to be divided, along with the Original Certificate.

Merging of Share Certificate

  1. PURPOSE
    This procedure outlines the merging of many certificates in to one as requested by the shareholder.

  2. PROCEDURE
    The Shareholder who wish to merge his/her different certificates into one certificate, should put-up a written request along with all original certificates to Treasury & Shares Dept.

Issuing of a New Certificate against missing one

  1. PURPOSE
    This procedure outlines the issuance of a duplicate certificate in lieu of missing one, if the shareholder’s claim is valid.

  2. SCOPE
    Issuing a duplicate certificate against a missing one.

  3. PROCEDURE
    The Shareholder who wish to merge his/her different certificates into one certificate, should put-up a written request along with all original certificates to Treasury & Shares Dept.
    1. The Shareholder, who lost his/her certificate, shall notify Safco immediately by a letter or fax.

    2. Immediately upon the receipt of notification from the Shareholder, Shares Section shall advice the shareholder through a letter or fax (Annex-SH07) to furnish the following documents:

      An Undertaking duly verified by any local bank or Chamber of Commerce, stating that if he/she (Shareholder) finds the certificate's, it should be sent to Safco immediately.

      Upon receipt of documents mentioned in 3.6.3.2, the Share Section shall inform Saudi Share Registration Co. through a fax to stop trading the missing share certificate's (Annex-SH08).

      If the missing certificate has not been found within the legal waiting period, i.e. 15-30 days from the undertaking date, the Share Section shall update the shareholder’s file in the system and issue a new certificate duly affix the “Duplicate” stamp, which shall send to the shareholder.

Shares Certificate as a mortgage to the Bank

  1. PURPOSE
    This outlines the procedure which shall be followed to mortgage the share certificate with a bank.

  2. SCOPE
    Pledging of share certificate with a bank.

  3. PROCEDURE
    The Share Holder shall approach a Bank with a written request to pledge his/her certificates and bank shall verify the signature of the Share Holder.

    1. Bank shall send a letter to Safco Shares Section informing pledge of Shares with the Bank.

    2. Shares Section shall:

      Inform Saudi Share Registration Company by a fax regarding the pledge (Annex-SH09).

      Update the shareholder’s file in the system with the information on mortgage.

      Send a letter to the bank conforming agreement to the pledge (Annex-SH10).

      When the shareholder cleared from the mortgage, the bank shall inform Safco the shareholder’s clearance.

      Safco should inform the bank and Saudi Registration Shares Company to release the shares mortgage.