Article 40 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 40 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثالث: إجراء التسوية الوقائية: تأشير الأمين على المقترح
This article gives the court power to take what it considers appropriate if the debtor does not file the result of the vote on the proposal under paragraph (4) of Article 31 of the Law.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم يودع المدين نتيجة التصويت على المقترح لدى المحكمة بناء على الفقرة (4) من المادة (الحادية والثلاثين) من النظام؛ فللمحكمة اتخاذ ما تراه مناسباً.
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 40 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law deals with the case of the debtor's default in a procedural step after the vote on the proposal, which is filing the result of the vote with the court.
If the debtor does not file the result of the vote on the proposal with the court under paragraph (4) of Article 31 of the Bankruptcy Law, the article provides that:
- The court may take what it considers appropriate.
The article does not specify the action the court takes, but leaves its assessment to the court according to the circumstances of each case. Therefore no particular consequence of failing to file can be stated in advance; the matter is left to the court's discretion.
Note that the reference here is to paragraph (4) of Article 31 of the Bankruptcy Law itself, which is the basis of the filing duty.
This article follows Article 39, which specifies who may vote, and precedes Article 41, which regulates the debtor's request for ratification of the proposal. Its importance is that it reminds the debtor that neglecting to file does not simply stop the procedure, but opens the way for the court to intervene. To know what follows from this in your case, it is advisable to consult a lawyer who specializes in bankruptcy and commercial cases.
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 40 of the Saudi Implementing Regulations of the Bankruptcy Law
What happens if the debtor does not file the result of the vote with the court?
The court may take what it considers appropriate; the article does not specify a particular action.
Does the reference to Article 31 mean the Regulations or the Law?
The reference is to paragraph (4) of Article 31 of the Bankruptcy Law.
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 sets out when the court approves putting a proposal to amend the plan to creditors and owners for a vote, including a material circumstance, a request within 14 days, and the possible 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 requires the preventive settlement proposal to be endorsed by a trustee listed on the trustees' list 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 requires the debtor to notify creditors of the preventive settlement opening judgment within 7 days, and gives an unlisted creditor 14 days to ask for its claim to be included.
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 requires the debtor to file the court's decision approving or extending a stay of claims with the Bankruptcy Register as soon as it is issued.
على المدين أن يودع لدى سجل الإفلاس قرار المحكمة بالموافقة على طلب تعليق المطالبات أو تمديده فور صدوره.
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.