Article 11 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 11 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
The trustee sells the bankruptcy estate's assets after the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
Official text (Arabic)
This article has not been amended since the law was issued.
يتولى الأمين بيع أصول التفليسة بعد اكتساب حكم أو قرار افتتاح إجراء التصفية أو إجراء التصفية لصغار المدينين الصفة النهائية.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 11 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law specifies who sells the bankruptcy estate's assets and when.
Who sells? The trustee is the one who handles selling the bankruptcy estate's assets.
When does the sale begin? After the judgment or decision opening the procedure becomes final, in two procedures:
- The liquidation procedure.
- The liquidation procedure for small debtors.
The article says "judgment or decision," so it covers opening whether by judgment or by decision, and the condition in both cases is that it become final. The article does not state when the judgment or decision becomes final.
Practical effect: the issuance of the opening judgment or decision alone is not enough to start the sale under this article; one waits until it becomes final. This article does not state the method or procedures of sale.
Relation to neighboring articles:
- Article 10 gives the creditors' committee, the creditor and the debtor the right to inspect the information and documents held by the trustee or the Bankruptcy Committee, unless they are decided to be confidential for reasons including preserving the value of the bankruptcy estate's assets.
- Article 12 deals with a different matter, enforcement against the assets securing the debtor's debt during the period of suspension of claims, and refers to the relevant laws on it.
Anyone who wants to know whether the opening judgment in their case has become final, or who has an objection to the sale of a particular asset, would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
A judgment has been issued opening a liquidation procedure for a factory in the Eastern Province, and the judgment has not yet become final. Under this article, the trustee does not begin selling the factory's equipment until the judgment becomes final.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 11 of the Saudi Implementing Regulations of the Bankruptcy Law
When does the sale of the debtor's assets begin in liquidation?
After the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
Who sells the bankruptcy estate's assets?
The trustee.
Does this rule apply to small debtors?
Yes. The article covers the liquidation procedure for small debtors as well as the liquidation procedure.
More articles on Liquidation of the Debtor's Assets
- Article 3
This article of the Regulations requires the debtor's directors or board members, before a voluntary liquidation item is put to a vote, to submit an auditor's report and a written declaration to the Ministry or the Capital Market Authority.
يلتزم أعضاء مجلس إدارة المدين أو مديروه أو أعضاء مجلس مديريه أو من في حكمهم - قبل إدراج بند التصفية الاختيارية للمدين؛ للتصويت عليه في جمعية المساهمين أو جمعية
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- Article 26
This article sets out the creditors' committee's tasks in representing the creditors, including approving the sale of any asset worth more than a quarter of the bankruptcy estate's assets, and lets its chair set the time and place of meetings.
1- تلتزم لجنة الدائنين بتمثيل الدائنين في المهمات المنصوص عليها في النظام واللائحة، وتشمل مهماتها الآتي: أ - الموافقة على بيع أي أصل تتجاوز قيمته ربع قيمة أصول
- Article 48
This article requires that a creditor's payment request to the debtor under paragraph (2/c) of Article 93 of the Law be dated and state the amount of the debt and its cause.
يجب أن يكون طلب سداد الدين الذي يقدمه الدائن إلى المدين بموجب الفقرة ( 2 / ج ) من المادة (الثالثة والتسعين) من النظام مؤرخاً ومحدداً فيه مقدار الدين وسبب نشوئه.
- Article 49
This article requires a debtor who requests liquidation to notify its creditors of the request and hearing date within 7 days of registering it, and allows a creditor to object at least 5 days before the hearing.
على المدين -إذا تقدم بطلب افتتاح إجراء التصفية- تبليغ دائنيه بالطلب, وموعد جلسة النظر فيه خلال (سبعة) أيام من تاريخ قيده. وللدائن تقديم اعتراض إلى المحكمة على ا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.