Article 58 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 58 من اللائحة التنفيذية لنظام الإفلاس · الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: إنهاء العقود
This article requires the small debtor to notify the creditors identified in the proposal of the voting date, with a copy of the proposal or evidence that it is available electronically.
Official text (Arabic)
This article has not been amended since the law was issued.
يبلغ المدين الصغير الدائنين المحددين في المقترح بموعد التصويت عليه، ويرفق 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 58 explained in plain English
In the preventive settlement procedure for small debtors, the proposal is put to the creditors for a vote. This article of the Implementing Regulations of the Bankruptcy Law regulates how they are informed of this:
- Person bound to notify: The small debtor.
- Those notified: The creditors identified in the proposal.
- Subject of the notice: The date of the vote on the proposal.
- Attachment: A copy of the proposal, or evidence that access to it has been made available by an electronic means specified by the Bankruptcy Committee.
The aim is that each creditor knows the voting date and can see the proposal before voting on it. The article leaves the debtor the choice between attaching a copy of the proposal itself, or providing evidence that it has been made available electronically by a means approved by the Bankruptcy Committee.
The article does not set a particular period for the notice, or its means, so its ruling is limited to who notifies, who is notified and what accompanies the notice.
This article follows Article 57 on the small debtor's request to terminate its contracts before the creditors vote, and precedes Article 59, which requires it to attach the specified information and documents to the request for a stay of claims.
If you are a creditor and receive such a notice, it is useful to review the proposal with a lawyer who specializes in bankruptcy and commercial cases before the voting date.
Practical example
The owner of a small tailoring workshop in Riyadh is in the preventive settlement procedure for small debtors. She sent the creditors identified in the proposal a message with the voting date, together with a link to see the proposal through an electronic means specified by the Bankruptcy Committee.
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 58 of the Saudi Implementing Regulations of the Bankruptcy Law
Who notifies the creditors of the voting date in preventive settlement for small debtors?
The small debtor notifies the creditors identified in the proposal.
What is attached to the notice of the voting date?
A copy of the proposal or evidence that access to it has been made available by an electronic means specified by the Bankruptcy Committee.
More articles on Small Debtor Bankruptcy Procedures
- 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 57
This article regulates a small debtor's request to terminate its contracts in preventive settlement for small debtors: its timing, the trustee's report and notice to the contracting party.
1 - على المدين الصغير الذي يرغب في إنهاء أي من العقود التي يكون طرفاً فيها تقديم طلب الإنهاء إلى المحكمة بعد إيداع قرار افتتاح إجراء التسوية الوقائية لصغار المد
- Article 59
This article requires the small debtor to attach the information and documents specified for that purpose to the request for a stay of claims.
على المدين الصغير أن يرفق بطلب تعليق المطالبات المعلومات والوثائق المحددة لذلك.
- Article 60
This article requires the small debtor to file the decision approving a stay of claims or extending it with the Bankruptcy Register as soon as it is issued, and to announce it within 5 days.
1 - على المدين الصغير فور إصدار المحكمة قراراً بالموافقة على طلب تعليق المطالبات أو تمديده, إيداع القرار لدى سجل الإفلاس. 2 - يعلن المدين الصغير قرار المحكمة با
- Article 61
This article requires the small debtor to file with the Bankruptcy Register, within 5 days, what proves that the result of the vote was filed with the court, and to announce that the plan has taken effect within 5 days.
على المدين الصغير خلال (خمسة) أيام من انتهاء تصويت الدائنين على المقترح أن يودع لدى سجل الإفلاس ما يثبت إيداع نتيجة التصويت لدى المحكمة، وعليه أن يعلن عن نفاذ ا
- Article 62
This article explains how financial reorganization for small debtors opens: the decision in the specified form, the trustee's check of the conditions, and the court's time limits on filing or a creditor's request.
1 - يصدر المدين الصغير أو الجهة المختصة قرار افتتاح إجراء إعادة التنظيم المالي لصغار المدينين وفقاً للنموذج المحدد لذلك. 2 - على الأمين التحقق -بناء على المعلوم
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.