Riyadh – Mubasher: The Saudi Capital Market Authority (CMA) called on companies that have incurred losses and their shareholders to restructure their companies before the grace period for applying Article no. 150 of the new statute is over.

The CMA said that it is coordinating with the Ministry of Trade and Industry regarding the application of the new corporate law that allows companies whose losses amount to half the company’s paid-up capital to have a one-year grace period to restructure and amend their position in accordance with Article no. 150 of the new statute.

Companies may begin implementing the new regulation starting 2 May, 2016, the CMA noted, adding that the grace period ends on 22 April 2017.