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The State As A Shareholder: A Study Of Partial Privatization And Its Impacts On Corporate Governance In The Kingdom Of Saudi Arabia, Meshal Faraj
UAEU Law Journal
Different studies show that partially privatized firms outperform their private peers in Saudi Arabia. Ownership of Saudi government of publicly traded companies may be feasible economically, but legally creates a hard case. The literature of corporate governance is still unable to absorb the implications of government ownership. This study attempts to examine those implications and its impacts on jurisdictions featuring dual judicial legal systems (administrative and civil courts) through presenting Saudi Arabia case.
The Saudi government adopts the single tier board structure. Under this structure, only shareholders are entitled to elect board of directors. When the government holds a controlling …