HomeReady-to-use templates and contractsFormation and governanceRelated-Party Disclosure
Related-Party Disclosure: 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 form in which a manager or partner discloses his interest in a dealing with the company and records the comparison basis and the partners' decision to approve or reject.
When a company deals with an entity owned by its manager, one of its partners, or a relative of theirs, the transaction is either sound or suspect depending on one thing: whether it was disclosed before being concluded and approved by whoever holds the power to approve, or slipped through in silence. Disclosure does not prevent the dealing; it makes it transparent and protects the person who disclosed before anyone asked. Sighaty template F-09 is written within the framework of the Companies Law and covers the whole disclosure: the discloser's capacity, the description of the transaction, the counterparty and his relationship to it, its value and term, the basis against which its terms are compared, and the partners' decision with any conditions attached, in two parallel languages with the Arabic text prevailing on any difference.
Get the Related-Party Disclosure TemplateF-09What this form is and when you need it
A related party in a small company is closer than it looks: a supplier owned by one of the partners, premises leased from the manager's relative, or a service provided by another company with the same owners. The problem is not the dealing itself but the absence of a document showing the other partners knew of it and approved it on known terms. This form is that document: it discloses, it compares, and it keeps the approval or rejection in the company file.
- The company contracting with an entity owned or managed by a partner or the manager.
- Leasing or purchasing from a relative of the company's manager or one of its owners.
- Preparing for an audit, a review, or due diligence ahead of a transaction.
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, and for the capacity of the person disclosing: a manager, or a partner with his ownership percentage. It then asks for a detailed description of the dealing in both languages, the counterparty's name and the nature of your relationship to it, and the value and term of the dealing.
It then asks on what basis you show the terms of the dealing are acceptable: quotes from other parties, or a comparison against market benchmarks. It then moves to the other side of the page, the decision: whether the partners approved or rejected, by what percentage of ownership the decision passed, and what conditions were attached to the approval if any.
Within minutes you receive a formatted bilingual Word document, ready to sign and editable before approval, gathering the disclosure, the comparison basis, and the decision on a single dated page. You keep it in the governance file, and it becomes a ready answer to any question that arrives a year or more later.
Why a lawyer-certified template beats a free download
Free disclosure forms usually stop at a general acknowledgment that an interest exists, and such an acknowledgment protects nobody because it does not describe the transaction, does not show its terms were compared to alternatives, and records no decision. The disclosure that helps under review is the one that answers: what the transaction is, at what value and term, on what basis its terms were accepted, and who approved it. The Sighaty template is certified by a licensed Saudi lawyer and covers those four questions in one order, and it is updated as regulations change, so you move from a formal acknowledgment to a document that holds up when questioned.
Frequently asked questions
Does disclosure prevent dealing with a related party?
No. The purpose of disclosure is that the decision be taken with full knowledge, not that the dealing be barred. The template lets you record either approval or rejection, and where approved, lets you attach conditions to it. What determines who holds the power to approve, and at what percentage, is your articles of association and what the Companies Law provides.
Why does the template ask for quotes or market benchmarks?
Because the question every related-party dealing faces is whether its terms were what they would have been with an independent party. Recording alternative quotes or a comparison against market benchmarks is what answers that question with a written trace made at the time, rather than a justification drafted later once someone asks.
Does the disclosure need a separate partners' resolution?
The template carries the decision inside it by stating the approval or rejection, the percentage by which it passed, and any attached conditions, which is enough in many cases. If you need a standalone resolution in customary form to submit to an outside party, the F-03 resolutions set includes a form approving a related-party dealing, so the two documents complement each other.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.