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Dividend Distribution Resolution: A Ready Template Certified by a Licensed Saudi Lawyer
- Category
- Formation and governance
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
A resolution documenting a distribution based on approved financials, after reserves and prior losses, with a clear record date and payment date.
Distributing profits is not a withdrawal from the company account; it is a decision that must rest on a sound financial basis: profits genuinely available for distribution after setting aside the reserves the articles of association require and after covering prior losses. A distribution made without that basis exposes the partners and the manager, and it puzzles the auditor and the bank when they look for its support. Sighaty template F-08 is written within the framework of the Companies Law and documents the distribution end to end: the financial basis, the amount, the share of each unit, and the record date and payment date, in two parallel languages with the Arabic text prevailing on any difference.
Get the Dividend Distribution Resolution TemplateF-08What this resolution is and when you need it
The resolution establishes three things that are hard to prove later: that the distribution rested on specific financial statements, that it came after reserves and prior losses rather than before them, and that the partners became entitled on a known date. The distinction between a final distribution following approval of the year's statements and an interim distribution resting on interim financials as at a stated date matters, because the financial basis differs and so does the caution required.
- A final distribution after the year's financial statements are approved.
- An interim distribution during the year based on interim financials.
- The need for written support for the transfers before the auditor or the bank.
What the smart-fill asks and what you receive
The smart-fill asks for the company name in Arabic and English and its commercial register number, the partners' resolution number, then the financial basis for the distribution: audited financial statements for a fiscal year you specify, or interim financials as at a date you enter. It then asks for the distributable profits and the amount remaining after the reserves the articles of association require and after any prior losses.
It then asks for the type of distribution: final or interim, the total amount distributed and the share attaching to a single unit, and whether that unit is a quota or a share, which switches the terminology through the text, and finally the record date that fixes who is entitled and the payment date, both in the Hijri and Gregorian calendars.
Within minutes you receive a formatted bilingual Word document, ready to sign and editable before approval, with a resolution tying the distributed amount to its financial basis and to two clear dates. You end up with written support for every transfer instead of transfers with no reference in the company's records.
Why a lawyer-certified template beats a free download
Ready distribution resolutions online usually stop at a sentence resolving to distribute an amount to the partners and ignore what actually matters: out of which profits, after which reserves, whether prior losses were covered, and who is entitled as at what date. These are not formalities; they are what separates a sound distribution from a challengeable one. The Sighaty template is certified by a licensed Saudi lawyer and makes you settle these elements during fill-in itself, and it is updated as regulations change, so the resolution comes out supported rather than bare.
Frequently asked questions
What is the difference between a final and an interim distribution?
A final distribution rests on the audited financial statements for a completed fiscal year once approved, while an interim distribution rests on interim financials as at a stated date during the year. The template supports both and, on the interim route, asks for the date the financials were prepared as at, because an interim distribution remains tied to what the year's results show at closing.
Why does the template ask for both a record date and a payment date?
Because they answer two different questions: the record date fixes who counts as a partner entitled to the distribution, and the payment date fixes when the amounts are actually paid. Separating them matters if a stake changes hands between the two dates, since it prevents a dispute over who is entitled, the seller or the buyer.
Can profits be distributed while the company carries prior losses?
The template builds the resolution on profits available for distribution after setting aside the reserves the articles require and after prior losses, and it asks for that figure expressly rather than assuming it. Any distribution beyond that limit remains open to challenge, and stating the figure in the resolution itself is what shows the partners addressed it.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.