Article 45 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 45 من اللائحة التنفيذية لنظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي
This article requires the trustee to attach a report on the proposal when filing it, and the debtor to notify affected creditors and owners of the voting date once the trustee approves.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الأمين- تبليغ الدائنين والملاك المتأثرين بالمقترح؛ بموعد التصويت عليه وفق النموذج المحدد لذلك، على أن ترفق بالتبليغ نسخة من المقترح أو ما يفيد بإتاحة الاطلاع عليه بأي من الوسائل الإلكترونية التي تحددها لجنة الإفلاس.
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 45 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law regulates the stage of filing the proposal and preparing for the vote on it in the financial reorganization procedure, and divides the duties between the trustee and the debtor:
First: the trustee's duty. When the proposal is filed with the court, the trustee attaches his report containing his opinion on two matters:
- The possibility of the creditors approving the proposal.
- The feasibility of implementing the proposal.
Second: the debtor's duty. After the trustee's approval, the debtor notifies the creditors and owners affected by the proposal of the date of the vote on it, and:
- Does so according to the form specified for that purpose.
- Attaches a copy of the proposal or evidence that access to it has been made available by an electronic means specified by the Bankruptcy Committee.
Note that the notice is directed to the creditors and owners affected by the proposal, and that it takes place only after the trustee's approval. This article follows Article 44 on allowing a creditor to inspect the approved list of claims, and is followed by Article 46, which regulates the quorum of the owners' meeting, the creditors' vote and the trustee's filing of the result of the vote.
To read the trustee's report and assess the effect of the proposal on your rights before voting, you can consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
A transport company in Jeddah is in the financial reorganization procedure. The trustee filed the proposal with the court with his report that the creditors are likely to approve it and that it is feasible to implement, and then the company, after the trustee's approval, notified the affected creditors and owners of the voting date in the specified form with a link to view the proposal.
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 45 of the Saudi Implementing Regulations of the Bankruptcy Law
What does the trustee's report on a financial reorganization proposal contain?
His opinion on the possibility of the creditors approving the proposal and on its feasibility of implementation.
Who notifies creditors of the voting date?
The debtor, after the trustee's approval, and in the form specified for that purpose.
Are all creditors notified?
The article requires notifying the creditors and owners affected by the proposal.
More articles on Financial Reorganization
- 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 42
This article exempts the debtor, its owners, managers and auditor from the Companies Law provisions on reaching the specified loss level if the financial reorganization request is registered in time.
يعفى المدين أو المالك أو المدير أو المسؤول أو عضو مجلس الإدارة أو مراجع الحسابات, من تطبيق أحكام نظام الشركات فيما يخص بلوغ خسائر المدين النسبة المحددة في نظام
- Article 43
This article allows someone who owns assets in the debtor's possession or held by it to ask the court to recover them, with the specified information and documents.
يقدم من يملك أصولاً تقع في حيازة المدين أو محجوزة لديه، طلباً إلى المحكمة لاستردادها، مرافقة له المعلومات والوثائق المحددة لذلك.
- Article 44
This article requires the trustee to allow a creditor to inspect the list of claims approved by the court.
على الأمين تمكين الدائن من الاطلاع على قائمة المطالبات التي تعتمدها المحكمة.
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.