Saudi regulator proposes tougher oversight for listed firms with deep losses

Saudi Arabia’s Capital Market Authority has proposed special governance rules for listed companies whose accumulated losses reach at least half their capital. Those companies would have to disclose their significant owners, while investors holding 5% of voting shares could put a loss-recovery plan on the agenda of a shareholder meeting. Boards would then need to publish monthly or quarterly updates showing whether the plan is meeting its targets, why it has fallen behind if it has, and how they intend to respond; the obligations would remain until losses drop below 20% of capital. The point is to turn a turnaround plan from a one-time promise into something shareholders can track and challenge. The proposal is open for public comment until November 28 and has not yet become a rule.