Article 24 of the Saudi Chambers of Commerce Law
المادة 24 من نظام الغرف التجارية · الفصل الثاني: الأجهزة الإدارية للغرفة
Article 24 requires the chamber's president, deputies, members and Secretary General to notify the board of any interest in the chamber's contracts, and bars them from attending the deliberations and voting on them.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا كان لرئيس الغرفة أو أحد نائبيه أو أحد أعضاء المجلس أو الأمين العام للغرفة مصلحة مباشرة أو غير مباشرة في العقود أو الاتفاقيات التي تبرمها الغرفة، فيتعين عليه إبلاغ مجلس الإدارة بذلك، ولا يجوز له حضور مداولات المجلس في شأن أي موضوع يرتبط بهذه العقود والاتفاقيات، أو التصويت عليه.
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 24 explained in plain English
This article deals with conflicts of interest inside the chamber of commerce.
Who is covered:
- The chamber's president.
- One of his two deputies.
- A member of the board of directors.
- The chamber's Secretary General.
When it applies: if any of them has a direct or indirect interest in contracts or agreements the chamber concludes. The indirect interest widens the scope of the rule, so the person does not need to be a party to the contract personally.
What the person must do:
- Notify: notify the board of directors of this interest.
- Not attend: he or she may not attend the board's deliberations on any matter linked to these contracts and agreements.
- Not vote: he or she may not vote on it.
The aim is to protect the chamber's decisions from being influenced by personal interests, and to ensure they are made in the interest of the chamber and its subscribers. The article itself does not set a specific penalty for a violation, but Article 25 makes the chamber's president and members answerable to the General Assembly for misuse or waste of the chamber's funds and for any other violation of the Law, and the Secretary General answerable to the board for the same within his or her area of responsibility, with no hearing of a liability claim after 5 years from discovery of the act, except in cases of fraud and forgery.
The article is also linked to Article 23, which makes board decisions by a majority of the votes of those present. If you have a conflict-of-interest question in a chamber of commerce, it is advisable to consult a lawyer specializing in commercial and corporate matters.
Practical example
A chamber of commerce board is offered a tender to equip the training hall, and it turns out that one of the applying companies is owned by the brother of a board member. The member must notify the board of this indirect interest, and must stay out of the board's deliberations on this contract and not vote on it.
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 24 of the Saudi Chambers of Commerce Law
What should a chamber board member do if he or she has an interest in a chamber contract?
The member must notify the board of directors and may not attend the deliberations on the contract or vote on it.
Does the conflict-of-interest rule cover the chamber's Secretary General?
Yes. It covers the chamber's president, his deputies, the board members and the Secretary General.
Does the article cover an indirect interest?
Yes. It applies to a direct or indirect interest in contracts or agreements the chamber concludes.
More articles on Chamber Board Powers and Meetings
- 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 19
Article 19 lists the powers of the chamber's board of directors, including approving policies, reviewing regulations, acting on the chamber's behalf, appointing the Secretary General, and forming committees.
يختص مجلس إدارة الغرفة بما يأتي: 1- إقرار السياسات العامة للغرفة والخطط والبرامج والمشروعات اللازمة لأداء مهماتها. 2- دراسة مشروعات لوائح الغرفة الداخلية، بما ف
- Article 20
Article 20 gives the chamber's president responsibility for following up on strategic matters and for calling and chairing General Assembly and board meetings, and leaves his or her other powers to the Implementing Regulations.
يختص رئيس الغرفة بصفة خاصة بمتابعة مهمات الغرفة ذات الطابع الاستراتيجي، والدعوة إلى اجتماعات الجمعية العمومية للغرفة ومجلس الإدارة، ورئاسة هذه الاجتماعات وإدارت
- Article 21
Article 21 requires the chamber's board to meet at least once every 60 days, and governs emergency meetings called by the president or requested by one third of the members.
1- يجتمع مجلس إدارة الغرفة في مقرها مرة كل (ستين) يوماً على الأقل بدعوة من رئيسه، ويجب أن تشتمل الدعوة على جدول أعمال الاجتماع. 2- لرئيس الغرفة دعوة مجلس الإدار
- Article 22
Article 22 sets the quorum for a chamber board meeting and allows it to be postponed twice if the quorum is not reached, with a Ministry representative attending the third meeting.
تكون اجتماعات مجلس إدارة الغرفة صحيحة بحضور أكثر من نصف عدد أعضائه، على أن يكون من بينهم رئيس الغرفة أو أحد نائبيه. فإن لم يكتمل النصاب، يؤجل الاجتماع -بقرار من
- Article 23
Article 23 governs the confidentiality of chamber board discussions, decisions by majority of those present, open voting, inviting non-members, and electronic meetings and circulation.
1- تكون المناقشات في اجتماعات مجلس إدارة الغرفة سرية. 2- تصدر قرارات مجلس إدارة الغرفة بأغلبية عدد أصوات الأعضاء الحاضرين، فإن تساوت الأصوات يرجح الجانب الذي صو
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.