Article 58 of the Saudi Bankruptcy Law
المادة 58 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: الإشراف على الإجراء
The article lists the financial reorganization trustee's tasks and powers, such as monitoring the debtor's financial operations and attending hearings and meetings, and requires honesty and truthfulness.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يكون للأمين خلال فترة إجراء إعادة التنظيم المالي بالإضافة إلى مهماته وصلاحياته الأخرى المنصوص عليها في النظام واللائحة، المهمات والصلاحيات الآتية:
أ- التحقق من سلامة إدارة المدين لنشاطه ومراقبة عملياته المالية.
ب- حضور جلسات الدعاوى واجتماعات الدائنين وغيرها المتعلقة بالمدين والإجراء.
ج- القيام بأي أعمال ذات طابع تبعي أو عرضي لمهماته وصلاحياته.
د- أداء الأعمال التي تكلفه المحكمة بها.
هـ- ما تنص عليه اللائحة.
2- يجب على الأمين عند أداء مهماته وصلاحياته التحلي بالأمانة والصدق.
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
This article details the tasks and powers of the trustee during the financial reorganization procedure, in addition to its other tasks and powers provided for in the Bankruptcy Law and the Implementing Regulations.
Tasks and powers:
- (a) Verifying the soundness of the debtor's management of its business, and monitoring its financial operations.
- (b) Attending hearings of lawsuits, creditors' meetings and other matters relating to the debtor and the procedure.
- (c) Carrying out any work that is ancillary or incidental to its tasks and powers.
- (d) Performing the work the court assigns to it.
- (e) What the Implementing Regulations provide, which the article does not detail.
A duty of conduct: In performing its tasks and powers the trustee must act with honesty and truthfulness.
The list is not exhaustive, because it is in addition to what is in the Bankruptcy Law and the Implementing Regulations, and it includes ancillary work and whatever the court assigns to it.
This article applies the general role set out in Article 57, which is the trustee's supervision of the debtor's business to verify the fairness of the procedure, implementation of the plan and the protection of the interests of those affected. It is complemented by Article 59, which gives the trustee the right to see the information and documents the court holds about the debtor, and the right to obtain information from public and private bodies to the extent necessary to perform its tasks.
To know what the trustee may request from your business, or what it owes you as a creditor, it is advisable to consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
The financial reorganization trustee for an import company in Dammam noticed unusual financial transfers from the company's accounts. Within its power to monitor the debtor's financial operations and verify the soundness of its management of its business, it reviewed these transfers and attended the creditors' meeting to present its findings honestly and truthfully.
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 Bankruptcy Law
What are the powers of the financial reorganization trustee?
They include verifying the soundness of the debtor's management of its business and monitoring its financial operations, attending hearings of lawsuits and creditors' meetings, work ancillary to its tasks, what the court assigns to it, and what the Implementing Regulations provide.
Does the trustee attend creditors' meetings?
Yes. Among its tasks is attending hearings of lawsuits, creditors' meetings and other matters relating to the debtor and the procedure.
Are these all the trustee's powers?
No. They are in addition to its other tasks and powers provided for in the Bankruptcy Law and the Implementing Regulations.
More articles on Financial Reorganization
- Article 41
After a protective settlement ends, the court, on its own initiative or at an interested party's request, opens the appropriate bankruptcy procedure if three conditions are met together.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- بافتتاح إجراء الإفلاس المناسب إذا تحققت الشروط الآتية: أ- أن يكون المدين متعثراً أو مفلساً. ب- استيفاء شر
- Article 42
The article states who may request the opening of financial reorganization and its three cases, and bars the request if the debtor underwent this procedure in the previous 12 months.
1- دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء إعادة التنظيم المالي للمدين في أي من الحالات ا
- Article 43
A request to open the financial reorganization procedure is filed with the court after submission, accompanied by the relevant information and documents as the Implementing Regulations specify.
يقيد طلب افتتاح إجراء إعادة التنظيم المالي لدى المحكمة بعد تقديمه مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة.
- Article 44
If someone other than the debtor submits a financial reorganization request, the court notifies the debtor within 5 days, and the debtor may object at the hearing in three cases.
إذا تقدم غير المدين بطلب افتتاح إجراء إعادة التنظيم المالي، فعلى المحكمة تبليغ المدين به خلال مدة لا تزيد على (خمسة) أيام من تاريخ تقديمه، وللمدين الاعتراض على
- Article 45
The debtor, owner, manager, officer, board member and auditor are exempted from the Companies Law provisions on a company's losses reaching a specified percentage, as the Implementing Regulations specify.
يعفى المدين أو المالك أو المدير أو المسؤول أو عضو مجلس الإدارة أو مراجع الحسابات من تطبيق أحكام نظام الشركات فيما يخص بلوغ خسائر الشركة نسبة محددة في ذلك النظام
- Article 46Amended by M/89
Filing a financial reorganization request or opening the procedure stays claims for 180 days, extendable by up to 180 days, with cases for an early end.
1- يترتب على قيد طلب افتتاح إجراء إعادة التنظيم المالي أو افتتاحه، تعليق المطالبات لمدة (مائة وثمانين) يوماً، وللمحكمة من تلقاء نفسها، أو بناءً على طلب الأمين أ
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.