Commercial Companies Law

Article 342 — Article (342) Application for Company Inspection

Part Ten: Oversight and Inspection of Companies

1. Subject to the provisions of Articles 333 and 334 of this Decree Law, shareholders holding at least 10% of the Capital of the Company may request the Ministry or, as applicable, the SCA to order an inspection of the Company in connection with alleged serious violations of the duties of Directors or auditors under this Decree Law or the Company's AOA provided there is probable cause to believe that a violation has been committed. 2. The application for inspection shall include: a. Evidence that the applicants have good cause to justify taking such steps. b. An undertaking stating that the shareholders filing the application shall deposit their shares and that the shares shall remain deposited until the application has been decided. 3. The Ministry or, as applicable, the SCA may, upon hearing the statements of the applicants and the Directors or members of a similar body and the auditors at a closed meeting, order an inspection of the activities, books or any documents or records with another Company related to the Company being inspected, or in the possession of its auditor, and may appoint for such purpose one or more experts at the expense of the applicants for inspection.

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