Article 149 of the Saudi Bankruptcy Law
المادة 149 من نظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: تعيين أمين إعادة التنظيم المالي لصغار المدينين
The article regulates appointing the trustee for financial reorganization for small debtors, the selection criteria, the duty to creditors, delegating duties, and appointing up to 3 jointly liable trustees.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تعين المحكمة في حكمها بافتتاح إجراء إعادة التنظيم المالي لصغار المدينين أميناً من المدرجين بقائمة أمناء الإفلاس. وللدائن أن يقترح على المحكمة اسم الأمين الذي يرغب في تعيينه من بين المدرجين في القائمة.
2- يعد الأمين الذي اتفق معه المدين الصغير أو الجهة المختصة معيناً من تاريخ الإيداع القضائي.
3- يراعى عند تعيين الأمين قدراته المالية ومؤهلاته العلمية ومؤهلات فريق العمل معه.
4- على الأمين بذل العناية الواجبة تجاه مصالح الدائنين.
5- دون إخلال بالفقرة (2) من هذه المادة، للأمين بعد موافقة المحكمة تفويض بعض مهماته إلى أحد المدرجين بقائمة الأمناء أو الخبراء للقيام بالمهمة المفوض بها إذا استدعى الأمر ذلك، على أن تكون المهمات الموكل بها المفوض موصوفة بدقة وعناية في قرار المحكمة.
6- للمحكمة -عند الحاجة- تعيين أكثر من أمين، وبحدّ أقصى ثلاثة أمناء يعملون مجتمعين وفقاً للنظام ولتعليماتها، على أن تختار من بينهم رئيساً، ويكون الأمناء مسؤولين بالتضامن عن أعمالهم، وتبين اللائحة طريقة عملهم.
7- يودع الأمين ما يفيد بتعيينه في سجل الإفلاس، وفقاً لما تحدده اللائحة.
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 149 explained in plain English
This article regulates appointing the trustee in the financial reorganization procedure for small debtors and the trustee's duties.
- Appointment by court ruling: the court appoints in the opening ruling a trustee from those on the bankruptcy trustees list, and a creditor may propose to it the name of a trustee from the list.
- The trustee agreed with: if the small debtor or the competent authority agrees with a trustee, the trustee is considered appointed from the date of the judicial filing.
- Selection criteria: the trustee's financial capacity, academic qualifications and the qualifications of the team working with the trustee are taken into account.
- The trustee's duty: to exercise due care toward the creditors' interests.
- Delegation: without prejudice to paragraph (2), the trustee may, after the court's approval, delegate some of its duties to one of those on the trustees list or to experts if needed, provided the duties are described precisely and carefully in the court's decision.
- Several trustees: the court may, when needed, appoint more than one trustee, up to 3, who act jointly in accordance with the Law and its instructions; the court chooses a chair from among them, and they are jointly and severally liable for their actions, and the Implementing Regulations set out how they work.
- Filing: the trustee files in the bankruptcy register a record of the appointment, as specified by the Implementing Regulations.
Article 148 sets out the ways of opening the procedure, including the court's ruling on a creditor's request. Article 150 requires the trustee to announce the opening of the procedure within 5 days and invite creditors to submit their claims. For a particular situation, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.
Practical example
The court ruled to open financial reorganization for small debtors for a small company in Riyadh at the request of one of its creditors. The creditor proposed the name of a trustee from the list and the court appointed him. Because the company has inventory that needs specialist valuation, the trustee, after the court's approval, delegated the valuation task to a listed expert, and the task was described precisely in the court's decision.
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 149 of the Saudi Bankruptcy Law
Who appoints the trustee for financial reorganization for small debtors?
The court appoints the trustee in the opening ruling from those on the bankruptcy trustees list, and a creditor may propose a name. A trustee agreed with by the debtor or the competent authority is considered appointed from the date of the judicial filing.
Can more than one trustee be appointed?
Yes. When needed, the court may appoint up to three trustees, choose a chair from among them, and they are jointly and severally liable for their actions.
May the trustee delegate its duties?
The trustee may, after the court's approval, delegate some of its duties to one of those on the trustees list or to experts, provided the duties are described precisely in the court's decision.
More articles on Small Debtor Bankruptcy Procedures
- Article 102
Opening the liquidation leads to the start of liquidating the bankruptcy estate assets, carried out by the trustee, except what the court approves an individual debtor keeping for the living of the debtor and dependents.
1- يترتب على افتتاح إجراء التصفية البدء في تصفية أصول التفليسة. 2- يتولى الأمين تصفية أصول التفليسة عدا ما وافقت المحكمة على احتفاظ المدين ذي الصفة الطبيعية به
- Article 127
The article states that the aim of the protective settlement for small debtors is to let a small debtor agree with its creditors on settling its debts through simple, low-cost procedures while it keeps managing its business.
يهدف إجراء التسوية الوقائية لصغار المدينين إلى تمكين المدين الصغير من التوصل إلى اتفاق مع دائنيه لتسوية ديونه خلال فترة معقولة عبر إجراءات يسيرة بتكلفة منخفضة و
- Article 128
The article lets a small debtor choose the ordinary protective settlement, and bars it from opening a small debtors' settlement if it was subject to it or to a protective settlement in the preceding 12 months.
1- للمدين الصغير طلب افتتاح إجراء التسوية الوقائية بدلاً من افتتاح إجراء التسوية الوقائية لصغار المدينين. 2- لا يجوز للمدين افتتاح إجراء التسوية الوقائية لصغار
- Article 129
The article allows a small debtor that is distressed, bankrupt or expecting distress to issue a decision opening the small debtors' protective settlement and file it with its proposal in the bankruptcy register.
1- للمدين الصغير إذا كان يتوقع مواجهة اضطرابات مالية يخشى معها تعثره أو كان متعثراً أو مفلساً، أن يصدر قراراً بافتتاح إجراء التسوية الوقائية لصغار المدينين وفق
- Article 130
The article requires a small debtor to call the owners to vote on the proposal if it affects their rights, at least 21 days before the voting date and before the creditors vote.
إذا تضمن المقترح ما يؤثر في حقوق الملاك، فعلى المدين الصغير دعوتهم إلى التصويت على المقترح قبل حلول موعد التصويت بـ(واحد وعشرين) يوماً على الأقل وفقاً لما تنص ع
- Article 131
The article lets a small debtor ask the court to suspend claims for no more than 90 days, and explains when that period ends.
1- للمدين الصغير أن يطلب من المحكمة -خلال المدة من افتتاح إجراء التسوية الوقائية لصغار المدينين إلى موافقة الدائنين على المقترح- تعليق المطالبات لمدة لا تزيد عل
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.