A guide to doing business in Saudi Arabia: dissolving a company (page 3 of 3)

These documents will be presented to the partners at a general assembly, or in accordance with the firm's governing documents.

Step 7: Order of distribution

Upon liquidation, distribution of the company's assets will be in the following order:
• Expenses and fees relating to liquidation;
• Creditors (subject to preference as prescribed by law);
• Payment to the partners for their paid-in capital;
• Payment of any surplus to the partners in accordance with the governing documents of the firm. If no such stipulations are set forth in the governing documents, payment is pro rata.

Step 8: Final report

After completing the liquidation, the partners will approve the final report and the liquidators will declare completion of the liquidation according to the requirements set forth in the company's governing documents and the initial resolution authorising the liquidators to act.

Step 9: Publication of resolution

Completion of the liquidation should be declared and the partners' approval to the liquidation should be published in Um al-Qura. This approval does not need to be notarised in the same manner as the initial resolution referenced in Step 2.

Step 10: Time limit for lawsuit

After declaring completion of the liquidation, a suit may be filed against the liquidators regarding transactions of the liquidation for a period of three years. Additionally, claims may be filed against the partners, managers and
auditor during this three-year period.

This article is part of MEED magazine's Doing Business in Saudi Arabia Guide, for more information please visit MEED.com