Article 47 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 47 من اللائحة التنفيذية لنظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي
This article requires the debtor to prepare a report every 3 months on the progress of implementing the plan and the management of its activity and give it to the trustee, and specifies its content.
Official text (Arabic)
This article has not been amended since the law was issued.
على المدين إعداد تقرير كل (ثلاثة) أشهر عن سير تنفيذ الخطة وإدارة نشاط المدين, وتقديمه إلى الأمين، على أن يتضمن الآتي:
أ - بيان المنجز في تنفيذ بنود الخطة خلال مدة التقرير.
ب - بيان الصعوبات التي يواجهها المدين في تنفيذ الخطة، والخطوات التي اتخذها أو يقترح اتخاذها في ضوء الخطة لتجاوز تلك الصعوبات.
ج - القوائم المالية إذا كان المدين شخصاً ذا صفة اعتبارية، وما يبين مركزه المالي إذا كان شخصاً ذا صفة طبيعية.
د - أي معلومات أو بيانات أخرى 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 47 explained in plain English
After the financial reorganization plan is approved, following its implementation needs regular information. This article of the Implementing Regulations of the Bankruptcy Law therefore requires the debtor to prepare a report every 3 months on the progress of implementing the plan and the management of its activity, and to give it to the trustee.
The report must include the following:
- What was achieved: A statement of what was achieved in implementing the terms of the plan during the period of the report.
- Difficulties: A statement of the difficulties the debtor faces in implementation, and the steps it has taken or proposes to take, in light of the plan, to overcome them.
- Financial position: The financial statements if the debtor is a legal person such as a company, and what shows its financial position if it is a natural person.
- Any other information or data specified by the Bankruptcy Committee.
Note that the article distinguishes between a legal person, which provides financial statements, and a natural person, which provides what shows its financial position. The last item also leaves it to the Bankruptcy Committee to add requirements, without the article specifying them.
This article follows Article 46, which regulates voting on the proposal and filing its result, and is followed by Article 48 on the payment request that a creditor submits to the debtor. To check that the report meets its requirements, you can use the help of a lawyer who specializes in bankruptcy and commercial cases.
Practical example
A food factory in Qassim is operating under a financial reorganization plan. Every 3 months the factory gives the trustee a report showing the installments it paid to creditors, a delay in supplying a new production line and what it did to address it, together with its financial statements for the period.
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 47 of the Saudi Implementing Regulations of the Bankruptcy Law
How often does the debtor submit a report on implementing the financial reorganization plan?
Every 3 months, and it gives it to the trustee.
What does the plan implementation report contain?
What was achieved of the plan's terms, the difficulties and the steps to overcome them, the financial statements or what shows the financial position, and any data specified by the Bankruptcy Committee.
Does a natural person submit financial statements?
The article asks a natural person for what shows his financial position; financial statements are for a legal person.
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 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 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 of the Regulations allows a person who owns assets in the debtor's possession or held by the debtor 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.