A shareholder in Saudi Arabia can petition the National Company Law Tribunal under sections 241 and 242 of the Companies Act 2013 against oppression and mismanagement, or under section 59 to rectify the register. The verifying affidavit is notarised in the Kingdom and apostilled, or signed at the Indian mission. Your advocate appears at hearings, and the Tribunal can reverse allotments, restore your position or order a buy-out.
- Document route
- Saudi notary (including Najiz e-notarisation), then apostille from the Saudi Ministry of Foreign Affairs, or signing at the Indian mission
- Time difference
- IST is 2h30 ahead of Saudi time all year (no daylight saving)
- Law
- Companies Act 2013, sections 241 to 246
- Forum
- NCLT bench of the registered office state
Shareholder Disputes & NCLT from Saudi Arabia: how it works
We obtain the company's filing history from the MCA portal and compare it with your records, looking for allotments, director changes and meetings held while you were in Saudi Arabia without proper notice. A legal notice seeks inspection of registers and minutes. Bank records of your remittances into the company help establish your investment and contribution.
Filing is before the NCLT bench that covers the state of the company's registered office. If the allotment you challenge has reduced your holding below 10 per cent, we seek a waiver. While the case is pending, the bench can restrain fresh share issues or any sale of the company's land and assets. A buy-out at fair value is a common resolution, and the money can be remitted to Saudi Arabia after FEMA compliance where your holding was repatriable. The Tribunal also refers family company disputes to mediation where both sides agree, and a settlement reached there becomes part of the order.
What clients in Saudi Arabia should know
- The limitation clock usually starts from the act complained of; act soon after you learn of it.
- Where shares were held in a relative's name with your money, separate civil remedies may be needed alongside company law.
- Gains from a buy-out are taxed in India and not taxed in Saudi Arabia for individuals.
Step by step from Saudi Arabia
Video consultation
A call at a time that suits Saudi Arabia, after we have read your documents.
Documents signed in Saudi Arabia
Saudi notary (including Najiz e-notarisation), then apostille from the Saudi Ministry of Foreign Affairs, or signing at the Indian mission
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Saudi Arabia where needed.
The full guide
This page covers what changes when you are in Saudi Arabia. For the law, the documents and the step-by-step procedure, read our main page on Shareholder Disputes & NCLT, or see all services for clients in Saudi Arabia and the Disputes & Enforcement practice area.
Questions from clients in Saudi Arabia
Can I file without leaving Saudi Arabia?
Yes. The affidavit is signed in the Kingdom and your advocate handles hearings.
Which bench will hear the case?
The NCLT bench for the state where the company's registered office is located.
Can the Tribunal order a buy-out?
Yes, at a fair value, often after an independent valuation.