Article 27 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 27 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الأقل، وتصدر قراراتها بأغلبية أصوات الأعضاء الحاضرين.
3 - يجوز أن يكون عقد اجتماعات لجنة الدائنين ومداولاتها والتصويت على قراراتها بوساطة وسائل التقنية الحديثة.
4 - يحرر محضر باجتماع لجنة الدائنين وتثبت فيه قراراتها، وتزود اللجنة الأمين بنسخة من المحضر.
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 27 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law regulates how the creditors' committee works in its meetings.
- Running the meeting: The committee chair runs its meetings. When he is absent, he may delegate a member to do so, provided the delegation is in writing.
- Quorum: A meeting is valid only if at least a majority of the members attend.
- Voting: The committee's decisions are issued by a majority of the votes of the members present, not by a majority of all members.
- Remote meetings: Meetings, deliberations and voting on decisions may be held by modern technology.
- Minutes: Minutes of the committee's meeting are drawn up recording its decisions, and the committee provides the trustee with a copy.
Arithmetic example: If the committee has 5 members, a meeting is valid with at least 3 attending. If only 3 attend, a decision is issued with the approval of 2 of them.
Relation to neighboring articles:
- Article 26 leaves the time and place of the committee's meetings to its chair, and sets out its tasks, including approving the sale of any asset whose value exceeds a quarter of the value of the bankruptcy estate's assets.
- Article 28 provides that any reasonable expenses a committee member incurs to attend its meetings are paid from the bankruptcy estate's assets.
A committee member who doubts the validity of a meeting or of a decision issued in it is advised to consult a lawyer who specializes in bankruptcy cases.
Practical example
A creditors' committee of 5 members for a company in Riyadh held its meeting on a video meeting platform, and 3 members attended. The meeting is valid because a majority of the members attended; two members approved a decision and the third opposed it, so the decision was issued by a majority of those present. Minutes were drawn up and a copy was sent to the trustee.
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 27 of the Saudi Implementing Regulations of the Bankruptcy Law
What is the quorum for a creditors' committee meeting?
A meeting is valid only if at least a majority of the members attend.
Can a creditors' committee meeting be held remotely?
Yes. Meetings, deliberations and voting may be held by modern technology.
How are the creditors' committee's decisions issued?
By a majority of the votes of the members present, and they are recorded in minutes, a copy of which the committee provides to the trustee.
More articles on Creditors' Committee
- Article 15
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.
تطبق قواعد إدارة الاجتماعات على أي اجتماع -للدائنين أو لجنة الدائنين- يُعقد بموجب أحكام النظام أو اللائحة، ما لم يتفق على غير ذلك.
- 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 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.