Article 17 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 17 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
The meeting management rules apply to managing the vote on the proposal, the debtor or trustee prepares minutes of the voting meeting with specified details, then deposits the voting result with the court.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تسري قواعد إدارة الاجتماعات على إدارة عملية التصويت على المقترح.
2- يعد المدين أو الأمين -بحسب الإجراء- محضراً لاجتماع الدائنين للتصويت على المقترح، يقيد فيه: تاريخ عقد الاجتماع, وموعده, ومكانه، وأسماء الدائنين الحاضرين, وفئاتهم, وقيمة كل دين، ونتيجة التصويت على المقترح.
3- يودع المدين أو الأمين -بحسب الإجراء- نتيجة التصويت على المقترح لدى المحكمة، مرافقاً لها المعلومات والوثائق المحددة لذلك.
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 17 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law regulates the vote on the proposal in three steps:
- The governing rules: the meeting management rules apply to managing the vote on the proposal. Under Article 1, these rules are issued by the Minister to manage meetings related to bankruptcy procedures.
- The minutes: the debtor or the trustee, according to the procedure, prepares minutes of the creditors' meeting to vote on the proposal, recording:
- The date, time and place of the meeting.
- The names of the creditors present and their classes.
- The value of each debt.
- The result of the vote on the proposal.
- The deposit: the debtor or the trustee, according to the procedure, deposits the voting result with the court, accompanied by the information and documents specified for this purpose.
Link to Article 16: Article 16 requires the proposal to include classification of creditors into classes containing holders of similar rights, and voting procedures. The minutes under this article record the classes of the creditors present and the value of each debt. This article does not set the approval percentages required to adopt the proposal.
Who prepares the minutes and deposits the result? The text makes this the task of "the debtor or the trustee, according to the procedure," and does not specify in this article which procedures the debtor handles and which the trustee.
It is useful for a creditor who attends to make sure his name, class and the value of his debt are recorded correctly in the minutes. If he finds an error in this, he would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
A restaurant company in Jeddah held a meeting of its creditors to vote on a proposal. The company prepared minutes recording the date, time and place of the meeting, the names of the creditors present, their classes and the value of each one's debt, and the result of the vote, then deposited the result with the court together with the specified information and documents.
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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Active contributorFrequently asked questions about Article 17 of the Saudi Implementing Regulations of the Bankruptcy Law
What do the minutes of the vote on the proposal contain?
The date, time and place of the meeting, the names of the creditors present and their classes, the value of each debt, and the result of the vote.
Where is the result of the vote on the proposal deposited?
The debtor or the trustee, according to the procedure, deposits it with the court, accompanied by the specified information and documents.
What rules govern the voting process?
The meeting management rules issued by the Minister apply to it.
More articles on Protective Settlement
- Article 16
This article of the Regulations specifies the details the proposal must include, as the case may be, such as the debtor's financial position, assets and debts, the proposed settlement, classification of creditors and the plan's timetable.
يجب أن يتضمن المقترح -بحسب الأحوال- ما يأتي: أ - معلومات عن المدين ونشاطه. ب- بيان الوضع المالي للمدين وتأثيرات الوضع الاقتصادي عليه. ج - تحديد أصول المدين وتقد
- Article 31
This article of the Regulations sets the cases in which the court agrees to put a proposal to amend the plan to creditors and owners for a vote, and allows a stay of claims.
1 - توافق المحكمة -بناءً على طلب المدين أو الأمين بحسب الإجراء- على تقديم مقترح لتعديل الخطة للدائنين والملاك وتحدد موعداً للتصويت عليه، وذلك في أي من الحالات ا
- Article 32
This article of the Regulations requires that the proposal for a protective settlement be endorsed by a trustee on the list of trustees as meeting the required information and documents.
يجب أن يكون المقترح المرافق لطلب افتتاح إجراء التسوية الوقائية مؤشراً عليه من أمين مدرج في قائمة الأمناء باستيفائه المعلومات والوثائق المطلوبة.
- Article 33
This article of the Regulations requires the debtor to notify creditors of the opening of the protective settlement within 7 days and gives an omitted creditor 14 days to request inclusion of its claim.
1- على المدين تبليغ الدائنين المحددين في المقترح بحكم المحكمة بافتتاح إجراء التسوية الوقائية خلال (سبعة) أيام من تاريخ صدوره، ودعوتهم إلى التصويت على المقترح، ع
- Article 34
This article of the Regulations requires the debtor to lodge the court's decision approving or extending a stay of claims with the Bankruptcy Register immediately upon its issue.
على المدين أن يودع لدى سجل الإفلاس قرار المحكمة بالموافقة على طلب تعليق المطالبات أو تمديده فور صدوره.
- Article 35
This article of the Regulations requires that a request submitted under paragraphs (1) and (3) of Article 21 of the Bankruptcy Law be accompanied by the information and documents specified for it.
يقدَّم الطلب بموجب الفقرة (1) والفقرة (3) من المادة (الحادية والعشرين) من النظام, مرافقة له المعلومات والوثائق المحددة لذلك.
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.