• The terms and phrases mentioned below – wherever they appear in this Law – shall have the meanings specified next to each of them unless the context requires otherwise:

• The Institution: A members' institution for each of the sports clubs (Al-Hilal / Al-Nasr / Al-Ittihad / Al-Ahli).

• The Ministry: Ministry of Sport.

• The Council: The Board of Directors of the institution.

• The President: The President of the Council.

• The Assembly: The General Assembly of the members of the institution.

• The Chief Executive Officer: The Chief Executive Officer of the institution.

• Institution Member: A natural or legal person who pays an annual subscription to the institution in exchange for their membership.

• The Club: The sports club (Al-Hilal / Al-Nasr / Al-Ittihad / Al-Ahli).

• The Company: The club's company.

• The Internal Regulations: The internal regulations issued by the institution in accordance with this Law.

• The Organizing Regulations: The regulations issued by the Ministry in accordance with this Law.

• 1. A legal entity is established under this Law, enjoying financial and administrative independence as a sports institution of a special nature and non-profit.

• 2. The main headquarters of the institution shall be located in the city of (Riyadh / Jeddah).

• 3. The institution consists of the following: (the association – the council – the CEO).

The duration of the institution is unlimited, and it remains established and retains its personality as long as it is capable of achieving its objectives; without prejudice to the provisions of Article (Twenty-Two) of this Law.

• The Ministry supervises the institution, in accordance with the powers granted to it by law, from a financial and administrative perspective, as well as in relation to the organization of the institution's memberships, and the regulations, standards, and performance measurement indicators it establishes related to all matters concerning the institution's purposes. It has, in particular, the following responsibilities:

• 1. Approving the necessary regulations to manage the affairs of the institution.

• 2. Approving the institution's budget, final accounts, annual reports, auditor reports, and financial statements of the institution.

• 3. Approving the controls and policies for financial support requests for the institution and accepting gifts, grants, donations, bequests, endowments, and other contributions from within or outside the Kingdom, while considering the relevant laws and decisions.

• 4. Approving the internal regulations governing administrative and financial affairs, including provisions regulating the status of its members and provisions related to the mechanisms for executing its competitions and securing its purchases.

• 5. Approving the operational rules for the committees concerned with auditing and compliance and their tasks.

• 6. Approving the disclosure and conflict of interest policy in the institution.

• A decision shall be issued by the Minister or his delegate regarding the above matters from this article.

• The institution aims to achieve the following:

• 1. Nominating members to the Board of Directors of the company; in accordance with the provisions of this company's bylaws.

• 2. Encouraging the public to join the institution and benefit from the advantages of membership.

• 3. Collaborating with the company to achieve ongoing integration and seasonal coordination between them.

• 4. Participating and providing opinions and advice on any topics referred to it by the company.

• 5. Submitting proposals to the Ministry that contribute to the development of the institution and its role in the growth of the sports sector.

• 6. Granting memberships in the institution in accordance with the provisions of the law and the regulations governing it.

• 1. The institution shall have a Board of Directors, composed of no less than (five) and no more than (nine) members – among them a Chairperson of the Board and a Vice-Chairperson – who are nominated and elected by the assembly in accordance with the provisions of the law and the governing regulations. In all cases, it is required that the members of the Board are individuals with natural capacity.

• 2. The term of membership in the Board shall be one (1) year; it shall be reconstituted or renewed thereafter in accordance with the provisions of the law and the governing regulations.

• Without prejudice to the provisions of Article (4) of this Law, the Council is responsible for all matters that would achieve the objectives of the institution, and it is the authority responsible for managing its affairs and making all necessary decisions to achieve its purposes. In particular, it has the following powers:

• 1. Approving the policies related to the institution's activities and strategies, as well as the necessary plans and programs for their implementation.

• 2. Supervising the operations of the institution, monitoring its growth and development, supporting it, and maintaining its independence and distinction.

• 3. Establishing monitoring and evaluation mechanisms to ensure the development of the institution's performance and the achievement of its objectives.

• 4. Approving the procedures and standards related to the institution's work. 

• 5. Approving the organizational structure of the institution.

• 6. Proposing the internal regulations of the institution related to its administrative and financial affairs and all internal matters of the institution and its amendments (including those related to its contracts and securing its purchases); and other internal regulations necessary for managing its affairs, and supervising their implementation after being approved by the Ministry.

• 7. Proposing a disclosure and conflict of interest policy, and a membership benefits regulation for the institution, and submitting them to the Ministry for approval.

• 8. Nominating members to represent the institution on the Board of Directors of a company in accordance with the provisions of its Articles of Association.

• 9. Appointing the Chief Executive Officer.

• 10. Establishing controls and policies governing the approval of financial support requests for the institution and the mechanism for incentivizing them, and accepting gifts, grants, donations, bequests, endowments, and other contributions from within or outside the Kingdom, while considering the relevant laws and decisions, and submitting them to the Ministry for approval.

• 11. Approving the accounting standards and policies for preparing the institution's financial statements and reviewing them; in accordance with the established standards and policies in force in the Kingdom.

• 12. Determining the beginning and end of the financial year for the institution in accordance with the beginning and end of the financial year for the company.

• 13. Establishing controls for nominating representatives of the institution and appointing them to the Board of Directors of the company, and determining who represents the institution in the company's general assembly, as well as defining their rights and obligations towards the institution, and submitting them to the Ministry for approval.

• 14. Approving the procedures and systems for risk management and compliance for the institution.

• 15. Approving the rules and procedures governing the work of the Council.

• 16. Appointing an internal financial auditor.

• 17. Approving the institution's final accounts, its annual report, the external auditor's report, and the institution's financial statements, and submitting them to the Ministry for approval.

• The Council may, as it deems appropriate, form permanent or temporary committees from among its members or others, assigning them tasks it sees fit, and naming in the decision to form each committee its chair and members, specifying their tasks. Each committee may seek assistance from whomever it deems necessary to perform the tasks assigned to it. The Council may delegate some of its powers to its President, Vice President, any of its members, or the Chief Executive Officer, or to whomever the Council sees fit according to the needs of the institution's operations.

• 1. The meetings of the Council shall be held at the main headquarters of the institution, and may, when necessary - with the approval of the President - be held in another location or through modern technological means.

• 2. The Council shall meet at the invitation of its President once every (three) months, and whenever necessary as deemed by the President, or if requested by at least (one-third) of its members. The Trustee of the Council must send the invitation - in writing - at least (seven) days prior to the meeting - unless all members of the Council agree to hold it at an earlier date - provided that the invitation includes the agenda.

• 3. The meetings of the Council shall be valid with the presence of at least the majority of its members, including the President or his Deputy.

• 4. The decisions of the Council shall be issued by the votes of at least the majority of the present members, and in the event of a tie, the side that the President of the meeting votes with shall prevail.

• 5. No member of the Council may abstain from voting, nor delegate another member to vote on his behalf in his absence.

• 6. The deliberations and decisions of the Council shall be recorded in minutes signed by the President of the meeting and the present members of the Council, and any member who objects to any decision may record his objection with justification in the minutes, and a copy shall be provided to the Ministry within (two) days from the date of the meeting.

• 7. The Council may invite to its meetings anyone it deems necessary to assist without having the right to vote.

• 8. A Trustee shall be appointed by a decision of the Council, who shall be responsible for: preparing the agenda and the secretariat of the Council's meetings, inviting the members of the association and the Council, preparing the minutes and decisions and recording them in the special register, and any other tasks specified by the Council. The decision to appoint the Trustee shall specify his salary and financial benefits; in accordance with what is determined by the internal regulations.

Without prejudice to the provisions of Article (4) of this Law, the institution shall have committees concerned with review and compliance, which shall be formed by a decision of the assembly, and shall be reconstituted every year.

• 1. The institution shall have a Chief Executive Officer, who is responsible for managing the affairs of the institution. His responsibilities are limited to what is stipulated in this Law and the regulations issued thereunder, as well as what is decided by the Council. He has the right – after obtaining the Council's approval – to delegate one of the institution's employees to perform a specific task within his competencies and under his oversight and supervision.

• 2. The Chief Executive Officer shall be appointed and relieved by a decision of the Council, and the decision shall specify his salary and other financial benefits in accordance with the internal regulations.