Document background
The Management Board Resolution is a fundamental corporate governance document used in Saudi Arabia to formally record and implement decisions made by a company's board of directors. It derives its authority from the Saudi Companies Law 2015 and must comply with specific regulatory requirements, including those from the Ministry of Commerce and, where applicable, the Capital Market Authority. This document is essential when the board needs to make official decisions on matters such as corporate strategy, financial commitments, organizational changes, or regulatory compliance. It serves multiple purposes: documenting board decisions, providing evidence for regulatory compliance, enabling implementation of corporate actions, and protecting both the company and its directors by maintaining a clear record of decision-making processes. The resolution must be properly executed, stored, and often filed with relevant authorities depending on the nature of the decisions made.
