Article 227 of the Saudi Bankruptcy Law
المادة 227 من نظام الإفلاس · الفصل السابع عشر: أحكام ختامية: إنشاء سجل الإفلاس وتحديد أغراضه
The article requires the Bankruptcy Committee to set up a bankruptcy register for what the law provides to be deposited in it, refers its details to the Implementing Regulations, and makes its contents open to the public.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تنشئ لجنة الإفلاس سجلاً يسمى سجل الإفلاس، تودع فيه ما نصت عليه أحكام النظام، وتحدد اللائحة المحتويات والمعلومات التي يجب أن يتضمنها سجل الإفلاس وإجراءات تحديثها وحذفها والاطلاع عليها، وغير ذلك من الأحكام اللازمة لعمل السجل.
2- يتاح للعموم الاطلاع على محتويات سجل 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 227 explained in plain English
This article creates an important transparency tool in bankruptcy procedures, namely the bankruptcy register.
Who sets it up? The Bankruptcy Committee.
What is deposited in it? What the provisions of the law provide to be deposited in the register.
What do the Implementing Regulations specify?
- The contents and information the register must include.
- The procedures for updating and deleting this information.
- The procedures for inspecting it.
- Other provisions needed for the register to work.
Who may inspect it? Paragraph 2 provides that the register's contents are open to the public, so inspection is not limited to the parties to the procedure.
The practical benefit is that anyone dealing with a merchant or a company, such as a supplier, buyer or financier, can consult the register to see what has been deposited in it about that party, according to the inspection procedures the Implementing Regulations specify. The text itself does not state the means by which inspection is made available.
Related to this is what Article 228 provides, that the notification and announcement provided for in the law are made as the Implementing Regulations specify. For an assessment of a specific situation, consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
A supply company in Riyadh wants to deal on credit with a new establishment and fears it may be subject to bankruptcy procedures. It can consult the bankruptcy register, whose contents the article makes open to the public, according to the procedures the Implementing Regulations specify.
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 227 of the Saudi Bankruptcy Law
What is the bankruptcy register?
A register set up by the Bankruptcy Committee in which it deposits what the provisions of the law provide.
Can anyone inspect the bankruptcy register?
Yes. The contents of the bankruptcy register are open to the public.
Who determines the information the register contains?
The Implementing Regulations, along with the procedures for updating, deleting and inspecting it.
More articles on General Provisions and the Bankruptcy Committee
- Article 1
Article 1 defines the key terms of the Bankruptcy Law, such as debtor, creditor, defaulting debtor, bankrupt, related party and the different bankruptcy procedures.
يقصد بالألفاظ والمصطلحات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها ما لم يقتض السياق خلاف ذلك: النظام: نظام الإفلاس. اللائحة: اللائحة التنف
- Article 2
Article 2 lists the seven bankruptcy procedures the Law regulates, from protective settlement to administrative liquidation.
يهدف النظام إلى تنظيم إجراءات الإفلاس، وهي: 1- التسوية الوقائية. 2- إعادة التنظيم المالي. 3- التصفية. 4- التسوية الوقائية لصغار المدينين. 5- إعادة التنظيم المال
- Article 3
Article 3 specifies which entities are regulated entities and requires the competent authority's approval before a request to open any bankruptcy procedure for them is registered.
1- يعد ما يأتي كياناً منظماً في تطبيق أحكام النظام: أ- الشركات المصرفية وشركات التمويل وشركات التأمين وشركات الصيرفة. ب- الأشخاص المرخص لهم بممارسة أعمال الأورا
- Article 4
Article 4 specifies who is subject to the Bankruptcy Law: individuals carrying on commercial, professional or profit-making business, registered companies and profit-making entities, and non-Saudi investors to the extent of their assets in the Kingdom.
تسري أحكام النظام على كلّ من: أ - الشخص ذي الصفة الطبيعية الذي يمارس في المملكة أعمالاً تجارية، أو مهنية، أو أعمالاً تهدف إلى تحقيق الربح. ب - الشركات التجارية
- Article 5
Article 5 sets out the objectives of bankruptcy procedures: enabling the debtor to organize its affairs, treating creditors fairly, maximizing asset value, cutting costs and time, and administrative liquidation when assets are weak.
تهدف إجراءات الإفلاس إلى الآتي: أ - تمكين المدين المفلس أو المتعثر أو الذي يتوقع أن يعاني من اضطراب أوضاعه المالية من الاستفادة من إجراءات الإفلاس، لتنظيم أوضاع
- Article 6
Article 6 gives the court the power to issue the judgments and decisions needed for bankruptcy procedures, supervise their execution, decide their disputes and impose penalties.
تصدر المحكمة الأحكام والقرارات اللازمة لتطبيق الإجراءات المنصوص عليها في النظام، وتتولى الإشراف على تنفيذها، والفصل فيما ينشأ عنها من نزاعات، وإيقاع العقوبات ال
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.