Article 15 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 15 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
The meeting management rules apply to any meeting of creditors or the creditors' committee held under the Bankruptcy Law or its Regulations, unless otherwise agreed.
Official text (Arabic)
This article has not been amended since the law was issued.
تطبق قواعد إدارة الاجتماعات على أي اجتماع -للدائنين أو لجنة الدائنين- يُعقد بموجب أحكام النظام أو اللائحة، ما لم يتفق على غير ذلك.
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 15 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law specifies the rules that govern creditors' meetings and creditors' committee meetings.
The rule: the "meeting management rules" apply to any meeting of creditors or of the creditors' committee held under the provisions of the Law or the Regulations. Under Article 1 of the Regulations, the meeting management rules are rules issued by the Minister to manage meetings related to bankruptcy procedures. This article does not state the content of those rules.
The exception: the phrase "unless otherwise agreed" means that applying these rules is the default, and it can be departed from if there is an agreement to the contrary. The article does not specify the parties to this agreement or its form.
Its scope: by its wording, the article covers two kinds of meetings:
- Creditors' meetings.
- Creditors' committee meetings.
provided that the meeting is held under the provisions of the Law or the Regulations.
Relation to neighboring articles: Article 16 requires the proposal to include, as the case may be, a number of details, among them the classification of creditors and voting procedures. Article 14 regulates the review of creditors' claims, preparing their list and submitting it to the court.
Anyone taking part in a creditors' meeting benefits from reading the meeting management rules issued by the Minister before the meeting. Anyone who wants to check the effect of an agreement that departs from these rules would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
A trustee in the bankruptcy procedure of a company in Riyadh called the creditors to a meeting. Unless there is an agreement to the contrary, the meeting management rules issued by the Minister apply to managing this meeting.
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 15 of the Saudi Implementing Regulations of the Bankruptcy Law
What rules govern creditors' meetings in bankruptcy?
The meeting management rules issued by the Minister apply to them, unless otherwise agreed.
Can other rules be agreed for a creditors' meeting?
Yes. The article applies the meeting management rules "unless otherwise agreed," without specifying the parties to the agreement or its form.
More articles on Creditors' Committee
- Article 24
A creditors' committee is formed by court decision with at least 3 members; the article sets out who may request it, the nomination periods and conditions, and the procedure and effect of the formation decision.
1 - يكون تشكيل لجنة الدائنين من (ثلاثة) أعضاء على الأقل من الدائنين بقرار من المحكمة من تلقاء نفسها أو بناءً على طلب الأمين أو طلب دائنين تمثل مطالباتهم ( 50 %
- Article 25
This article sets out four cases in which a creditors' committee member's membership ends, and requires the trustee to notify the court, which may appoint a replacement.
1- تنتهي عضوية عضو لجنة الدائنين في الحالات الآتية: أ- إذا حكمت المحكمة بافتتاح إجراء إفلاس للعضو. ب- إذا تغيب عن (ثلاثة) اجتماعات متتالية دون عذر يقبله رئيس ال
- 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 27
The chair runs the creditors' committee's meetings, a meeting is valid only if a majority of members attend, decisions pass by a majority of those present, and meetings may be held by modern technology with minutes recorded.
1 - يدير رئيس لجنة الدائنين اجتماعاتها، وله عند غيابه أن يفوض -كتابة- أحد أعضائها بذلك. 2 - لا يكون اجتماع لجنة الدائنين صحيحاً إلا إذا حضره أغلبية الأعضاء على
- Article 28
Any reasonable expenses a creditors' committee member incurs to attend the committee's meetings are paid from the bankruptcy estate's assets.
تدفع من أصول التفليسة أي مصروفات معقولة تكبدها عضو لجنة الدائنين لحضور اجتماعات اللجنة.
- Article 29
Membership of the creditors' committee does not stop a member from dealing with the debtor, as long as the dealing is in good faith and at fair value.
لا يترتب على عضوية لجنة الدائنين حظر تعامل العضو مع المدين, متى كان هذا التعامل بحسن نية وبقيمة عادلة.
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.