Article 32 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 32 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثالث: إجراء التسوية الوقائية: تأشير الأمين على المقترح
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن يكون المقترح المرافق لطلب افتتاح إجراء التسوية الوقائية مؤشراً عليه من أمين مدرج في قائمة الأمناء باستيفائه المعلومات والوثائق المطلوبة.
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 32 explained in plain English
When the debtor requests the opening of a protective settlement procedure, he attaches to his request a proposal setting out his vision for a settlement with his creditors. This article of the Implementing Regulations of the Bankruptcy Law sets an important formal requirement for this proposal:
- it must be endorsed by a trustee;
- this trustee must be on the list of trustees;
- the endorsement must state that the proposal meets the required information and documents.
The information and documents meant are, according to Article 1 of the Regulations, those determined by the Bankruptcy Committee in coordination with the Ministry of Justice. The article does not list this information itself but refers to what the Committee determines.
Note that the endorsement required here relates to the proposal's meeting the information and documents; the text does not say that the trustee gives his opinion on the proposal's feasibility or its chances of acceptance. It is followed by Article 33, which regulates notifying creditors after the opening judgment is issued.
In practice, a debtor wishing to pursue a protective settlement needs to engage a trustee on the list before submitting his request. To know what is needed to prepare the proposal in a particular case, a lawyer specializing in bankruptcy and commercial cases can be consulted.
Practical example
A trading establishment in Jeddah is facing difficulty paying its debts and wants a protective settlement. Before submitting its request to the court, it engages a trustee on the list of trustees to endorse its proposal as meeting the required 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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Frequently asked questions about Article 32 of the Saudi Implementing Regulations of the Bankruptcy Law
Is a bankruptcy trustee required to submit a protective settlement request?
Yes. The proposal attached to the request must be endorsed by a trustee on the list of trustees.
What does the trustee endorse in the proposal?
He endorses that the proposal meets the required information and documents.
Who determines the required information and documents?
The Bankruptcy Committee, in coordination with the Ministry of Justice, as defined in Article 1 of the Regulations.
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 17
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.
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
- 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 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.