Article 26 of the Saudi Chambers of Commerce Law

This article gives the Minister the power to dissolve the chamber's board of directors, but with clear limits.

Form of the decision: the dissolution is made by a reasoned decision of the Minister, meaning a decision that states its reason.

The two cases in which dissolution is allowed:

1. If the board exceeds the limits of its powers as set under the provisions of the Law.
2. If a dispute arises among the board's members that obstructs the chamber's work and leaves it unable to perform its duties, and the dispute cannot be resolved amicably through a committee formed by the board of the Federation of Chambers. A mere dispute is not enough: it must obstruct the work, and the attempt at an amicable settlement through the Federation's committee must have failed.

What the dissolution decision must include in all cases:

• A call to the chamber's General Assembly to hold early elections for a new board within no more than 90 days.
• The Minister's appointment of a temporary board from among the chamber's subscribers to carry out the board's duties until the new board is elected.

This way the chamber is not left without management, and an elected board is not replaced by an appointed one for an indefinite period.

The article is linked to Article 25, which makes the chamber's president and members answerable to the General Assembly for misusing or wasting the chamber's funds and for any violation of the Law. Anyone affected by a decision to dissolve a board who wants to know their options should consult a lawyer specializing in commercial and corporate matters.