Article 17 of the Saudi Chambers of Commerce Law
المادة 17 من نظام الغرف التجارية · الفصل الثاني: الأجهزة الإدارية للغرفة
The seventeenth article sets the cases of losing membership of the Chamber's board: death, resignation, repeated absence, incapacity and losing membership conditions, with an 8-year bar on standing in one case.
Official text (Arabic)
This article has not been amended since the law was issued.
يفقد العضو عضويته في مجلس إدارة الغرفة في الحالات الآتية:
1- الوفاة.
2- الاستقالة، ويعد في حكم المستقيل كل من تغيب -خلال فترة عضويته- عن حضور ثلاثة اجتماعات متتالية لمجلس الإدارة، أو ستة اجتماعات متفرقة، دون عذر يقبله رئيس الغرفة.
3- العجز عن أداء مهمات العضوية.
4- فقد أي شرط من شروط العضوية المحددة في المادة (السادسة عشرة) من النظام.
وفيما عدا الحالة المنصوص عليها في الفقرة (1) من هذه المادة، يصدر الوزير قراراً مسبباً بفقد العضوية.
وفي جميع الأحوال، لا يجوز لمن فقد عضويته بسبب مخالفة حكم الفقرة (6) من المادة (السادسة عشرة) من النظام؛ الترشح لعضوية مجلس إدارة أي غرفة لمدة (ثماني) سنوات من تاريخ فقده العضوية.
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 17 explained in plain English
This article explains when a member loses his seat on the Chamber's board of directors, and sets four cases:
- Death.
- Resignation: A member who, during his membership, is absent from 3 consecutive meetings of the board, or 6 separate meetings, without an excuse accepted by the Chamber's president, is treated as having resigned. Absence with an accepted excuse does not enter into this count.
- Incapacity to carry out the tasks of membership.
- Losing any condition of membership in Article 16, such as his commercial register entry no longer being valid, a judgment being issued for an offense involving dishonor or breach of trust, or membership of the board of another chamber.
The decision to lose membership: In all cases except death, the Minister issues a reasoned decision that membership is lost, that is, a decision stating its reason.
The bar on standing: Someone who loses membership because of violating paragraph 6 of Article 16 may not stand for the board of directors of any chamber for 8 years from the date he lost membership. Paragraph 6 concerns the declaration of commitment to the objectives and purposes of membership, not committing offenses or legal violations that undermine eligibility, not putting personal interest ahead of the public interest, and not raising problems that obstruct the board's institutional work.
Article 18 deals with what follows loss of membership, regulating the filling of the vacant seat: by appointing the candidate who obtained the most votes among those who did not win, and if there is none the Minister appoints from among the subscribers who meet the conditions of Article 16. Someone against whom a decision to lose membership has been issued, who believes it is incorrect, should consult a lawyer specializing in commercial and company cases.
Practical example
Saad, a member of one chamber's board of directors, was absent from three consecutive meetings because he was busy, and did not give an excuse accepted by the Chamber's president. Saad is treated as having resigned, the Minister issues a reasoned decision that he loses membership, and then his seat is filled under Article 18.
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 17 of the Saudi Chambers of Commerce Law
How many meetings may a chamber board member miss?
A member who is absent from 3 consecutive meetings or 6 separate meetings during his membership, without an excuse accepted by the Chamber's president, is treated as having resigned.
Who issues the decision removing a chamber board member?
The Minister issues a reasoned decision that membership is lost in all cases except death.
When is a member barred from standing for the chamber of commerce for 8 years?
If he loses membership because of violating paragraph 6 of Article 16, he may not stand for the board of any chamber for 8 years from the date he lost membership.
Articles this article refers to
More articles on Conditions for Chamber Board Membership
- Article 12
The twelfth article refers board election procedures to the Implementing Regulations, bars electing more than one member from a single establishment, removes any financial pay for a member, and limits candidacy to two consecutive terms.
1- تُحدد اللائحة إجراءات الترشح والانتخاب بما في ذلك ضوابط الانتخاب الفردي وانتخاب المجموعات، وإجراءات الاقتراع والاعتراض والطعن، وتشكيل لجان الإشراف على الانتخ
- Article 15
The fifteenth article provides that the first deputy takes the Chamber president's place with full powers when he is absent or loses membership, then the second deputy when both are absent or lose membership.
يقوم النائب الأول لرئيس الغرفة مقام الرئيس، وتكون له جميع صلاحياته ويمارس جميع مهماته عند غيابه أو فقده عضوية مجلس إدارة الغرفة وفقًا للمادة (السابعة عشرة) من ا
- Article 16
The sixteenth article sets six conditions that an appointed member or a candidate for the Chamber's board must meet, including experience, a valid commercial register, good conduct and not holding membership of two chambers.
يُشترط في العضو المعين أو المترشح لمجلس إدارة الغرفة أن تتوافر فيه الشروط الآتية: 1- أن تكون لديه خبرة لا تقل عن (عشر) سنوات، ولا تقل عن (خمس) سنوات إذا كان حاص
- Article 18
The eighteenth article regulates filling a vacated seat on the Chamber's board by appointing the highest-polling candidate among those who did not win, or by the Minister appointing a replacement.
إذا خلا محل عضو منتخب في مجلس إدارة الغرفة لأي من الأسباب المنصوص عليها في المادة (السابعة عشرة) من النظام، يعين بقرار من الوزير المترشح الحائز على أكثر الأصوات
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.