Article 55 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 55 من اللائحة التنفيذية لنظام الإفلاس · الفصل الخامس: إجراء التصفية: طلب السداد
This article of the Regulations obliges the trustee to return what remains of the proceeds of selling the bankruptcy estate's assets, after the creditors have received their rights, to the debtor who is a natural person or to the owners of a juristic-person debtor.
Official text (Arabic)
This article has not been amended since the law was issued.
يرد الأمين إلى المدين ذي الصفة الطبيعية أو ملاك المدين ذي الصفة الاعتبارية ما تبقى من حصيلة بيع أصول التفليسة بعد استيفاء الدائنين حقوقهم.
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 55 explained in plain English
The proceeds of selling the assets of the bankruptcy estate may be sufficient to pay all the creditors, leaving a surplus. This article of the Implementing Regulations of the Bankruptcy Law determines the fate of this surplus:
- The condition: that the creditors have received their rights.
- The person charged: the trustee.
- Who is entitled to the surplus:
- The debtor itself if it is a natural person (an individual).
- The debtor's owners if it is a juristic person (such as a company).
The order is clear: the creditors are paid first, and what remains after that is returned. On the logic of the text, nothing may be returned to the debtor or its owners before the creditors have received their rights.
The article does not state how the surplus is distributed among the owners if there are several, as that depends on what governs their relationship with the company. The article follows Article 54, which regulates the distribution decision to creditors according to their priorities, and precedes Article 56, which allows a request to postpone ending the liquidation procedure.
To learn your rights as an owner in a company in liquidation, you may consult a lawyer specialized in bankruptcy and commercial cases.
Practical example
The assets of a limited liability company in Khobar were liquidated for an amount exceeding the total of its debts. After all the creditors have received their rights, the trustee returns the remaining amount to the partners who own the company.
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 55 of the Saudi Implementing Regulations of the Bankruptcy Law
Who gets the money left after a company is liquidated and its debts paid?
The trustee returns it to the debtor's owners if the debtor is a juristic person.
Does an individual trader get back what remains after liquidation?
Yes. The trustee returns what remains to the debtor who is a natural person after the creditors have received their rights.
When is the surplus returned?
After the creditors have received their rights from the proceeds of selling the bankruptcy estate's assets.
More articles on Liquidation of the Debtor's Assets
- Article 3
This article of the Regulations requires the debtor's directors or board members, before a voluntary liquidation item is put to a vote, to submit an auditor's report and a written declaration to the Ministry or the Capital Market Authority.
يلتزم أعضاء مجلس إدارة المدين أو مديروه أو أعضاء مجلس مديريه أو من في حكمهم - قبل إدراج بند التصفية الاختيارية للمدين؛ للتصويت عليه في جمعية المساهمين أو جمعية
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 11
The trustee sells the bankruptcy estate's assets after the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
يتولى الأمين بيع أصول التفليسة بعد اكتساب حكم أو قرار افتتاح إجراء التصفية أو إجراء التصفية لصغار المدينين الصفة النهائية.
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- 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 48
This article of the Regulations requires that the request for payment of a debt that the creditor submits to the debtor under paragraph (2/c) of Article 93 of the Law be dated and state the amount of the debt and its cause.
يجب أن يكون طلب سداد الدين الذي يقدمه الدائن إلى المدين بموجب الفقرة ( 2 / ج ) من المادة (الثالثة والتسعين) من النظام مؤرخاً ومحدداً فيه مقدار الدين وسبب نشوئه.
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.