Article 12 of the Saudi Central Bank Law
المادة 12 من نظام البنك المركزي السعودي · الفصل الثاني: الإدارة مجلس الإدارة
The Governor asks the King to appoint a successor to a board member on death, loss of a membership condition, a request to be relieved, missing 3 consecutive meetings without excuse, inability to perform duties, or serious breach.
Official text (Arabic)
This article has not been amended since the law was issued.
يرفع المحافظ إلى الملك طلب تعيين خلـفٍ لأي مـن أعضاء المجلـس - وفقاً للفقـرة (2) من المـادة الثامنـة من النظـام - في أي من الحالات الآتية:
1- وفاة العضو.
2- إذا فقد العضو أحد شروط العضوية المنصوص عليها في النظام.
3- إذا طلب العضو الإعفاء.
4- عنـد تغيب العضـو (ثلاثة) اجتمـاعـات متتاليـة دون عـذر يقبلـه المجـلس أو دون موافقة من رئيس المجلس.
5- إذا أصبح العضو غير قادر على أداء مهماته لأي سبب.
6- إذا أخلّ العضو بأحد واجباته إخلالاً جسيماً وفق ما يقرره المجلس.
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 12 explained in plain English
This article sets when a member of the Central Bank's board is replaced. The Governor submits to the King a request to appoint a successor to any Board member, in accordance with paragraph 2 of Article 8, in six cases:
- The member's death.
- The member loses one of the membership conditions set out in the Law.
- The member asks to be relieved.
- The member misses 3 consecutive meetings without an excuse the Board accepts, or without the approval of the Board chair.
- The member becomes unable to perform his duties for any reason.
- The member commits a serious breach of one of his duties, as the Board decides.
Note in case 4 that an absence is excused if the Board accepts the excuse or the Board chair approves the absence. In case 6, any breach is not enough; it must be serious, and the Board is the body that decides this.
The Governor's role here is to submit the request; the successor is appointed under paragraph 2 of Article 8, as the text refers to. The article does not set the successor's term of membership.
It is preceded by Article 11, which regulates the Board's meetings every 3 months, their quorum and how decisions are made, and the recording and signing of the minutes. It is followed by Article 13, which provides that the Bank has a full-time Governor with the rank of minister, appointed by Royal Order, who sets his benefits and is the executive responsible for managing the Bank.
Practical example
A member of the Central Bank's board took a job with a body that the membership conditions do not allow, and so lost one of the membership conditions. Under case 2, the Governor submits to the King a request to appoint a successor to him.
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 12 of the Saudi Central Bank Law
When is a replacement appointed for a member of the Central Bank's board?
On death, loss of a membership condition, a request to be relieved, missing 3 consecutive meetings without an accepted excuse, inability to perform duties, or serious breach of duties.
Who submits the request to appoint a replacement for a Central Bank board member?
The Governor, who submits it to the King.
How many absences before a member is replaced?
3 consecutive meetings without an excuse the Board accepts or without the approval of the Board chair.
Articles this article refers to
More articles on The Central Bank Board
- Article 8
The Central Bank's board consists of the Governor as chair, his two deputies, and five non-government members appointed by Royal Order for seven renewable years, with remuneration set by Royal Order.
1- يكون للبنك مجلس إدارة يشكل على النحو الآتي: أ - المحافظ رئيساً للمجلس. ب- نائبا المحافظ عضوين ج - خمسة من غير موظفي الحكومة أعضاء. 1مكرر- يكلف المحافظ أحد ال
- Article 9
The article requires the five non-government board members to be Saudi, experienced, without a conviction for a crime of dishonor or bankruptcy, and not to hold a post in a public body or financial institution.
يجب أن يتوافر في العضو من الأعضاء المنصوص عليهم في الفقرة الفرعية (ج) من الفقرة (1) من المادة (الثامنة) من النظام الشروط الآتية: 1- أن يكون سعودي الجنسية. 2- أن
- Article 10
The Central Bank's board supervises its work and good management, sets regulations and policies, approves strategies, the budget and auditors, forms committees, and may delegate some powers to the Governor.
1- يتولى المجلس الإشراف على أعمال البنك، ويكون المسؤول بشكل عام عن حسن سير الإدارة، وله الاختصاصات كافة اللازمة لتحقيق ذلك وفقاً لأهداف البنك، وللمجلس أن يضع ما
- Article 11
The Central Bank's board meets every 3 months and when needed; a meeting is valid with a majority including the chair or assigned deputy, decisions are by majority of those present, and the chair has the casting vote.
1- ينعقد المجلس بدعوة من رئيسه مرة كل (ثلاثة) أشهر، وكلما دعت الحاجة إلى ذلك بدعوة من رئيس المجلس أو بطلب من (ثلاثة) أعضاء على الأقل. 2- لا يكون الاجتماع صحيحاً
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.