Article 36 of the Saudi Chambers of Commerce Law
المادة 36 من نظام الغرف التجارية · الفصل الرابع: الشؤون المالية للغرفة
Article 36 bars spending without an approved allocation or beyond it, and transferring or misusing allocations, without the board's approval; violations are void and those responsible must repay the funds within 30 days.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يجوز صرف أي مبلغ ليس له اعتماد في ميزانية الغرفة أو يزيد على الاعتماد المخصص له. ولا يجوز كذلك نقل مبلغ من باب إلى آخر في الميزانية، ولا استخدام اعتماد مالي في غير الغرض المخصص له، إلا بموافقة مجلس إدارة الغرفة.
2- يقع باطلاً كل قرار أو تصرف يخالف حكم الفقرة (1) من هذه المادة، ويكون كل من صدر عنه أو شارك في إصداره مسؤولاً-بقدر مخالفته- عن رد الأموال التي صُرفت دون موافقة مجلس إدارة الغرفة أو صرفت في غير الغرض الذي خُصصت له، وعليه ردها خلال (ثلاثين) يومًا من تاريخ المطالبة بها.
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 36 explained in plain English
This article sets out rules controlling spending from the chamber's budget and the penalty for violating them.
First: what is prohibited (paragraph 1):
- Spending any amount that has no allocation in the budget, or that exceeds the allocation assigned to it.
- Transferring an amount from one heading of the budget to another.
- Using a financial allocation for a purpose other than the one it was assigned to.
The exception "except with the approval of the chamber's board of directors" appears in the text after the prohibition on transfers between headings and on use for another purpose.
Second: the penalty (paragraph 2):
- Voidness: every decision or act that violates paragraph 1 is void.
- Responsibility for repayment: anyone who issued the decision or took part in issuing it is responsible, in proportion to his or her violation, for repaying funds spent without the board's approval or for a purpose other than the one assigned.
- Repayment period: these funds must be repaid within thirty days of the date they are demanded.
So responsibility is personal and proportionate to the extent of the violation, and covers both the person who issued the decision and the person who took part. The article comes after Article 35 on the delayed budget and before Article 37 on the auditor. Anyone who is asked to repay or is accused of a violating act can consult a lawyer specializing in commercial and corporate matters.
Practical example
A chamber of commerce's budget has an amount allocated for organizing an exhibition, and an official decides to spend part of it on equipping offices without the board's approval. Under the article, this decision is void, and whoever issued it or took part in it is responsible, in proportion to the violation, for repaying the amount within 30 days of being asked to.
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 36 of the Saudi Chambers of Commerce Law
May a chamber spend without an allocation in the budget?
No. It may not spend any amount that has no allocation in the budget or that exceeds the allocation assigned to it.
What is the effect of a decision that violates the spending rules?
It is void, and whoever issued it or took part in issuing it is responsible, in proportion to the violation, for repaying the funds.
What is the deadline for repaying funds spent in violation?
Thirty days from the date they are demanded.
Can an amount be moved from one heading to another in the chamber's budget?
Not except with the approval of the chamber's board of directors.
More articles on Chamber of Commerce Finances
- Article 30
Article 30 refers to the Implementing Regulations for the categories of chamber subscribers and the fee for each, and provides that the fee falls due 3 years after registration in the commercial register.
تحدد اللائحة فئات المشتركين في الغرفة، والمقابل المالي لاشتراك كل فئة، ويبدأ استحقاق المقابل المالي للمشترك في الغرفة بعد مضي (ثلاث) سنوات من تاريخ قيده في السج
- Article 33
Article 33 lists the chamber's financial resources: subscriptions, fees for certificates and attestation, investment returns, accepted donations and gifts, and fees for publications, training, conciliation, arbitration and any other service.
تتكون موارد الغرفة المالية مما يأتي: 1- المقابل المالي للاشتراكات. 2- المقابل المالي لإصدار الشهادات والمحررات، والتصديق عليها. 3- عوائد استثمار الأصول التي تمل
- Article 34
Article 34 makes the chamber of commerce's fiscal year the same as the state's fiscal year.
السنة المالية للغرفة هي السنة المالية للدولة.
- Article 35
When the estimated budget is delayed, the chamber works on the previous budget's estimates until the General Assembly approves the new one within 90 days with the Minister's approval; otherwise the Ministry may take whatever action it sees fit.
في حال تأخر إصدار الموازنة التقديرية للغرفة، يُعمل بتقديرات الميزانية السابقة إلى أن توافق الجمعية العمومية للغرفة على مشروع الموازنة التقديرية الجديدة خلال (تس
- Article 37
Article 37 requires the chamber to have a licensed auditor chosen each year by its General Assembly from at least three nominated by the board, for no more than four consecutive years, who submits an annual report with a copy to the Ministry.
يكون للغرفة مراجع حسابات (أو أكثر) من مراجعي الحسابات المرخص لهم بالعمل في المملكة، تختاره الجمعية العمومية للغرفة سنويًّا من بين ثلاثة على الأقل يرشحهم مجلس إد
- Article 38
Article 38 requires the chamber's budget, financial statements and final accounts to be published as the Implementing Regulations set out.
تُنشر ميزانية الغرفة والقوائم المالية وحسابها الختامي وفقًا لما تحدده اللائحة.
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.