Article 23 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 23 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
This article regulates the removal and withdrawal of the trustee: notice to the court of a license being struck off or suspended, a request to withdraw for a legitimate reason, filing the decisions, appointing a replacement, and handover within 14 days.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - تبلغ لجنة الإفلاس المحكمة بشطب ترخيص الأمين أو الخبير أو إيقافه مؤقتاً أو عدم تجديده, وذلك للنظر في عزله أو استمراره في إجراء الإفلاس المعين فيه.
2- للأمين أن يطلب من المحكمة اعتزال عمله بناء على سبب مشروع تقبله المحكمة بما في ذلك الآتي:
أ - ظروف صحية تحول دون أداء مهماته وواجباته.
ب - نشوء تعارض في المصالح يؤثر في حياده واستقلاله أثناء أداء مهماته وواجباته.
3- إذا قررت المحكمة قبول طلب الأمين اعتزال عمله، فعليه تبليغ الدائنين بقرارها أو الإعلان عنه خلال (سبعة) أيام من تاريخه.
4- على الأمين المعزول أو المعتزل أن يودع لدى سجل الإفلاس قرار المحكمة بعزله أو بقبول طلب اعتزاله.
5- يجب أن يتضمن قرار المحكمة بعزل الأمين أو قبول اعتزاله تعيين أمين جديد مدرج في قائمة الأمناء، وعلى الأمين المعين أن يودع لدى سجل الإفلاس قرار المحكمة بتعيينه.
6- إذا عزل الأمين أو اعتزل العمل أثناء سريان إجراء الإفلاس، فعليه خلال (أربعة عشر) يوماً من تاريخ قرار المحكمة بعزله أو قبول اعتزاله أن يقدم إلى الأمين الجديد -بموجب محضر يوقعانه- جميع ما بحوزته من أصول المدين وجميع السجلات والمراسلات والمطالبات وأي معلومات ووثائق أخرى ذات علاقة بالإجراء حصل عليها أو أنشأها خلال عمله أميناً.
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 23 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law deals with what happens when the trustee stops working in a bankruptcy procedure, whether by removal or by withdrawal.
1- Effect of the license status: The Bankruptcy Committee notifies the court when the license of the trustee or the expert is struck off, temporarily suspended or not renewed, so that the court can consider removing him or letting him continue in the bankruptcy procedure to which he was appointed.
2- Withdrawal: A trustee may ask the court to let him withdraw from his work for a legitimate reason that the court accepts, including:
- Health circumstances that prevent him from performing his tasks and duties.
- A conflict of interest arising that affects his impartiality and independence while performing his tasks and duties.
The phrase "including" means that these two are examples of a legitimate reason.
3- Steps after the decision:
- If the court accepts the withdrawal request, the trustee must notify the creditors of its decision, or announce it, within 7 days of its date.
- A removed or withdrawing trustee must file with the Bankruptcy Register the court's decision removing him or accepting his withdrawal.
- The decision of removal or acceptance of withdrawal must include the appointment of a new trustee listed on the trustees' list, and the new trustee must file his appointment decision with the Bankruptcy Register.
4- Handover: If the trustee is removed or withdraws while the procedure is in progress, he must, within 14 days of the date of the court's decision, hand the new trustee, under a record signed by both, all the debtor's assets, records, correspondence and claims, and any other information and documents related to the procedure that he obtained or created during his work.
This article complements Article 22, which requires the trustee to hand the debtor what he holds as soon as the procedure ends. Anyone with concerns about a trustee's performance in a particular procedure is advised to consult a lawyer who specializes in bankruptcy cases.
Practical example
A trustee appointed in the liquidation of a company in Jeddah found that one of the potential buyers of its assets was his relative, creating a conflict of interest that affects his impartiality. He asked the court to let him withdraw, and it accepted, and its decision included the appointment of a new trustee. The withdrawing trustee must notify the creditors of the decision or announce it within 7 days, file it with the Bankruptcy Register, and hand the new trustee everything he holds within 14 days under a record signed by both.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributorFrequently asked questions about Article 23 of the Saudi Implementing Regulations of the Bankruptcy Law
Can a bankruptcy trustee withdraw from his work?
Yes, by asking the court, based on a legitimate reason that it accepts, including health circumstances or a conflict of interest arising.
What happens if the trustee's license is struck off?
The Bankruptcy Committee notifies the court, so that the court can consider removing him or letting him continue in the procedure.
How long does a removed trustee have to hand over what he holds to the new trustee?
14 days from the date of the court's decision removing him or accepting his withdrawal, under a record signed by both.
More articles on Bankruptcy Trustee and Experts
- Article 22
The trustee begins work from the date the bankruptcy procedure opens unless the judgment sets another date; a judgment appointing several trustees states their tasks, and the trustee hands the debtor what he holds once the procedure ends.
1- يباشر الأمين مهماته من تاريخ افتتاح إجراء الإفلاس، ما لم يتضمن حكم المحكمة بافتتاحه تاريخاً آخر. 2- يجب أن يتضمن حكم المحكمة بتعيين أكثر من أمين بياناً بمهما
- 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 45
This article of the Regulations requires the trustee to attach a report on the proposal when it is filed, and the debtor to notify affected creditors and owners of the voting date after the trustee's approval.
1 - على الأمين أن يرفق -عند إيداع المقترح لدى المحكمة- تقريره المتضمن رأيه في إمكان موافقة الدائنين على المقترح, وقابليته للتنفيذ. 2 - على المدين -بعد موافقة ال
- Article 65
This article requires the trustee, when filing the proposal with the court, to attach a report giving his opinion on the possibility of the creditors approving it and on its feasibility.
على الأمين أن يرفق عند إيداع المقترح لدى المحكمة تقريره المتضمن رأيه في إمكان موافقة الدائنين على المقترح, وقابليته للتنفيذ.
- Article 85
Sets the powers of the Bankruptcy Committee to issue rules on the bankruptcy register and the register referred to in Article 204 of the Law, on licensing, work, conduct and nomination of trustees and experts, and on inspection and verification.
مع مراعاة أحكام المادة (التاسعة) من النظام، تتولى لجنة الإفلاس الاختصاصات الآتية: أ - إصدار قواعد حفظ وإدارة سجل الإفلاس والسجل المنصوص عليه في الفقرة (2) من ال
- Article 91
Refers the conditions for licensing trustees and experts to the licensing rules, and sets when a name is removed from the list, the penalties for breach, and that suspension and removal decisions take effect from notification.
1 - تحدد قواعد الترخيص شروط منحه وإجراءاته, وواجبات المرخص له. 2- يقيد اسم المرخص له في قائمة الأمناء أو الخبراء، ولا يزال إلا في الحالات الآتية: أ - انتهاء مدة
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.