Under the new Companies Law in the Kingdom of Saudi Arabia, joint stock companies must adjust their status to comply with the new regulations within two years from the date of implementation of the law on January 4, 2023. This means companies have a grace period of two years to implement necessary amendments and ensure full compliance with the new requirements. The required amendments for joint stock companies to comply with the new Companies Law include: 1. Company Registration: - Official Registration: Joint stock companies operating without official registration must register with the relevant authorities. This involves submitting all necessary documents and information related to the company. 2. Drafting Articles of Association: - Formulating Articles of Association: Companies must draft Articles of Association (or Memorandum of Association) that specify the provisions and conditions governing the company's operations. This document should detail aspects such as the rights and obligations of shareholders, decision-making procedures, profit and loss distribution, and procedures for admission and withdrawal. 3. Compliance with Governance Requirements: - Enhancing Governance Structure: The new regulations may require stricter governance standards, including the appointment of specific committees such as an audit committee, and the establishment of clear policies and procedures for company management. 4. Updating Financial Data: - Preparation of Updated Financial Statements: Companies should present updated and reliable financial statements reflecting the company's financial position. These statements must be prepared in accordance with recognized accounting standards. 5. Disclosure and Transparency: - Enhancing Transparency and Disclosure: Improve transparency levels by providing regular reports to relevant authorities and stakeholders regarding the financial and operational performance of the company. 6. Tax Compliance: - Compliance with Tax Requirements: Ensure full compliance with new tax requirements and timely submission of tax returns. 7. Company Restructuring if Necessary: - Restructuring: In some cases, company restructuring may be necessary to comply with the new requirements. This may involve changing the company's legal form or modifying its ownership structure. Conclusion: Amending the status of joint stock companies according to the new Companies Law requires implementing several procedures to ensure full compliance with the new regulations. These amendments include official registration, drafting Articles of Association, enhancing governance structure, updating financial data, enhancing transparency and disclosure, complying with tax requirements, and possibly restructuring the company. The timeframe available for implementing these amendments is two years from the date of implementation of the new law.