Article 231 of the Saudi Bankruptcy Law
المادة 231 من نظام الإفلاس · الفصل السابع عشر: أحكام ختامية: إنشاء سجل الإفلاس وتحديد أغراضه
The article provides for publishing the Bankruptcy Law in the Official Gazette and its coming into force from the date the Implementing Regulations are issued, no later than 180 days from publication.
Official text (Arabic)
This article has not been amended since the law was issued.
ينشر النظام في الجريدة الرسمية، ويعمل به اعتباراً من تاريخ صدور اللائحة على ألا يتجاوز (مائة وثمانين يوماً) من تاريخ نشره.
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 231 explained in plain English
This article sets two matters relating to the start of the Bankruptcy Law's application:
- Publication: the law is published in the Official Gazette.
- Coming into force: the law takes effect from the date the Implementing Regulations are issued.
The article set a maximum limit for this: the start of application must not exceed 180 days from the date of the law's publication. So the start of effect is tied to the issuing of the Implementing Regulations, but it is not delayed beyond this limit.
There are thus two possibilities for the start of application of the law: either the Implementing Regulations are issued within 180 days of publication and the law takes effect from the date they are issued, or they are not issued within that period and the law's application is not delayed beyond its end.
Related to this article is what Article 230 provides on repealing earlier provisions, including the Law of Protective Settlement from Bankruptcy, since the application of the new law is determined under this article.
The text of the article does not state the actual date of publication or the date the Implementing Regulations were issued, so those should be consulted in their official sources. For an assessment of a specific situation, consult a lawyer specializing in bankruptcy and commercial cases.
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 231 of the Saudi Bankruptcy Law
When does the Bankruptcy Law come into force?
From the date the Implementing Regulations are issued, no later than 180 days from the date of its publication in the Official Gazette.
Where is the Bankruptcy Law published?
In the Official Gazette.
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.