Article 59 of the Saudi Bankruptcy Law
المادة 59 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: الإشراف على الإجراء
The article gives the trustee the right to obtain the debtor's information and documents from the court, the debtor, creditors, and public and private bodies, and disclosures to it are not a breach of confidentiality.
Official text (Arabic)
This article has not been amended since the law was issued.
1- للأمين حق الاطلاع والحصول على ما لدى المحكمة من معلومات أو وثائق عن المدين. وعلى المدين تزويد الأمين بأي معلومة أو وثيقة إضافية أو مستجدات فور علمه بها، والمبالغ التي يدين بها للغير ولم يسبق الإفصاح عنها للمحكمة، وأي عقود أو دعاوى أو إجراءات قضائية يكون طرفاً فيها.
2- للأمين حق الحصول على جميع المعلومات والوثائق المتعلقة بأصول التفليسة وحفظها، والرخص المتعلقة بنشاط المدين، وأي معلومة أو وثيقة أخرى ذات صلة بنشاط المدين.
3- للأمين أن يطلب من الدائن تقديم معلومة أو وثيقة إضافية تؤيد مطالبته أو تثبت تعديل طبيعة الدين أو مبلغه.
4- للأمين حق الحصول على أي معلومة عن نشاط المدين أو أصول التفليسة من الجهات العامة والخاصة بالقدر اللازم لتمكينه من أداء مهماته بما في ذلك الوثائق وكشوف حسابات المدين البنكية والاستثمارية. وعلى كل من يحوز هذه المعلومات الإفصاح له عنها.
5- لا يعد الإفصاح للأمين عن المعلومات المشار إليها في الفقرة (4) من هذه المادة انتهاكاً لسرية المعلومات، ويلتزم الأمين بحفظ هذه المعلومات والوثائق والحفاظ على سريتها.
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 59 explained in plain English
This article enables the trustee to access the information it needs to carry out its tasks in the financial reorganization procedure, and sets out the parties' obligations toward it.
- From the court and the debtor: The trustee has the right to see and obtain the information or documents the court holds about the debtor. The debtor must provide it, as soon as it learns of them, with any additional information, document or developments, with the amounts it owes to others that have not previously been disclosed to the court, and with any contracts, lawsuits or judicial proceedings to which it is a party.
- Estate assets and licenses: The trustee has the right to obtain all information and documents relating to the bankruptcy estate assets and their safekeeping, the licenses relating to the debtor's business, and any other information or document relevant to its business.
- From the creditor: The trustee may ask a creditor for an additional piece of information or a document supporting its claim or proving a change in the nature or amount of the debt.
- From public and private bodies: The trustee has the right to obtain any information about the debtor's business or the estate assets to the extent necessary to perform its tasks, including documents and the debtor's bank and investment account statements, and everyone who holds this information must disclose it to the trustee.
- Confidentiality: Disclosing to the trustee the information in paragraph 4 is not a breach of the confidentiality of information, and the trustee must safeguard it and maintain its confidentiality.
This article is linked to Article 58, which makes verifying the soundness of the debtor's management of its business and monitoring its financial operations among the trustee's tasks, and to Article 60, which requires the debtor to give the trustee a detailed list of its contracts in force as soon as it is appointed.
To know the limits of what you must disclose to the trustee, it is advisable to consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
The financial reorganization trustee for a commercial establishment in Riyadh asked a bank for the establishment's account statements for the most recent period, to the extent necessary to perform its tasks. The bank hesitated because of banking confidentiality, but Article 59 requires whoever holds this information to disclose it to the trustee and does not treat this as a breach of confidentiality, while the trustee must maintain its confidentiality.
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 59 of the Saudi Bankruptcy Law
Is a bankruptcy trustee entitled to see the debtor's bank account statements?
Yes. It may obtain any information about the debtor's business or the estate assets to the extent necessary to perform its tasks, including the debtor's bank and investment account statements.
Is a bank's disclosure to the trustee a breach of confidentiality?
No. The article provides that disclosing this information to the trustee is not a breach of the confidentiality of information, and the trustee must maintain its confidentiality.
What must the debtor provide to the trustee?
Any additional information, document or developments as soon as it learns of them, the amounts it owes to others that it has not disclosed to the court, and any contracts, lawsuits or judicial proceedings to which it is a party.
Does the trustee request documents from a creditor?
Yes. It may ask a creditor for an additional piece of information or a document supporting its claim or proving a change in the nature or amount of the debt.
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.