Article 28 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 28 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
Any reasonable expenses a creditors' committee member incurs to attend the committee's meetings are paid from the bankruptcy estate's assets.
Official text (Arabic)
This article has not been amended since the law was issued.
تدفع من أصول التفليسة أي مصروفات معقولة تكبدها عضو لجنة الدائنين لحضور اجتماعات اللجنة.
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 28 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law answers a question asked by anyone considering membership of the creditors' committee: who bears the cost of attending meetings?
The rule: Any expenses a creditors' committee member incurs to attend the committee's meetings are paid from the bankruptcy estate's assets, subject to two limits that appear from the text:
- The expenses must be reasonable.
- They must be incurred to attend the committee's meetings.
What the article does not mention:
- The article speaks of "expenses"; it mentions no award or pay for membership.
- It does not set the standard of reasonableness, or the body that assesses it.
- It does not say how these expenses are claimed.
Note that these expenses are paid from the bankruptcy estate's own assets, which is why the text limits them to reasonable ones.
Relation to neighboring articles:
- Article 27 allows the committee's meetings, deliberations and voting on its decisions to be held by modern technology, and requires for a meeting to be valid that at least a majority of the members attend.
- Article 29 provides that membership of the creditors' committee does not result in a ban on the member dealing with the debtor, as long as the dealing is in good faith and at fair value.
If a dispute arises over whether particular expenses are reasonable, the member is advised to consult a lawyer who specializes in bankruptcy cases.
Practical example
A creditors' committee member lives in Abha and the committee holds its meetings in Riyadh. If his travel and accommodation costs to attend the meeting are reasonable, they are paid from the bankruptcy estate's assets under this article; expenses that are unreasonable or unrelated to attending the meeting are not covered.
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 28 of the Saudi Implementing Regulations of the Bankruptcy Law
Are a creditors' committee member's expenses reimbursed?
Yes. Any reasonable expenses the member incurs to attend the committee's meetings are paid from the bankruptcy estate's assets.
Does a creditors' committee member receive pay?
This article speaks only of reasonable expenses for attending meetings; it mentions no pay or award for membership.
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 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 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.