Article 155 of the Saudi Bankruptcy Law
المادة 155 من نظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: النصاب المطلوب في التصويت
The article makes an accepted proposal effective from the date the vote result is filed with the court, and a plan binding on the small debtor, creditors and owners, with the filing recorded in the bankruptcy register.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يعد المقترح الذي يقبله الدائنون نافذاً من تاريخ إيداع نتيجة التصويت لدى المحكمة، ويكون المقترح بعد ذلك هو الخطة الملزمة للمدين الصغير والدائنين والملاك، وعلى المدين الصغير استكمال الإجراءات النظامية التي أوجبتها الأنظمة ذات العلاقة.
2- يودع الأمين في سجل الإفلاس ما يفيد نفاذ الخطة ويعلن عن ذلك، 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 155 explained in plain English
This article explains the consequences of the creditors accepting the proposal in the financial reorganization procedure for small debtors.
Start of effect: a proposal accepted by the creditors, according to the quorum in Article 154, is considered effective from the date the vote result is filed with the court, not from the date of the vote itself.
Binding force: the proposal then becomes the binding plan for each of:
- the small debtor.
- the creditors.
- the owners.
The small debtor must also complete the legal formalities required by the relevant laws, though the article does not detail these formalities.
Announcement: the trustee files in the bankruptcy register a record that the plan has taken effect and announces it, as specified by the Implementing Regulations.
After the plan takes effect, the procedure remains in place until it ends in one of the cases listed in Article 156, including the trustee's request to end it because implementation of the plan is complete. To learn the effect of the plan on your rights, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.
Practical example
The creditors of a car maintenance workshop in Al-Qassim approved its proposal by the required quorum, and the vote result was then filed with the court. From the date of this filing the proposal became a plan binding on the workshop, its creditors and its owners, and the trustee filed in the bankruptcy register a record that it had taken effect and announced it.
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 155 of the Saudi Bankruptcy Law
When does a small debtor's financial reorganization plan take effect?
From the date the vote result is filed with the court.
Is the plan binding on a creditor who did not approve it?
The text makes the accepted proposal a plan binding on the small debtor, the creditors and the owners, without distinguishing between those who approved and those who did not.
How do people learn that the plan has taken effect?
The trustee files in the bankruptcy register a record that it has taken effect and announces it, as specified by the Implementing Regulations.
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.