The Legal Causes of Dissolution of Company: A Comparative Study Between Saudi Law, Islamic Law, and Delaware Law

Abstract

The objectives of this dissertation are to examine Saudi Arabian company dissolution regulation, by answering the following questions: Is Saudi Arabia dissolution regulation consistent with Islamic Law? Is Islamic dissolution law inconsistent with modern law, such as Delaware law? Should Saudi Arabia dissolution regulation be made consistent with modern law, such as Delaware law? My answers are that Saudi Arabia dissolution regulation is consistent with Islamic Law; Islamic dissolution law has broad general rules that are consistent with modern law; and Saudi Law is old and needs to be modernized. In order to improve Saudi Arabia's dissolution regulation, I propose a new regime that is consistent with Islamic dissolution law and modern standards, such as Delaware law, My proposed regime aims to give maximum consideration to contractual flexibility, clarify ambiguousness, protect the law, support the existence of a company, protect a company's creditors and the transferees of an owner's economic interest, protect owners' interests, protect company's interests, and protect minority stakes.