Article 37 of the Saudi Chambers of Commerce Law
المادة 37 من نظام الغرف التجارية · الفصل الرابع: الشؤون المالية للغرفة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 إدارتها، وتعتمد الجمعية العمومية أتعابه، ولها إعادة تعيينه لمدة أو مدد لا تزيد في مجموعها على (أربع) سنوات متتالية. وعلى مراجع الحسابات أن يُقدِّم إلى الجمعية العمومية للغرفة تقريرًا سنويًّا يتضمن ما توصل إليه وفقًا لمعايير المراجعة المحاسبية المعتمدة في المملكة، مع إرسال نسخة منه إلى الوزارة.
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 37 explained in plain English
This article governs external oversight of the chamber's accounts through an auditor. Its provisions are:
- Who the auditor is: one or more auditors licensed to practice in the Kingdom.
- Who chooses the auditor: the chamber's General Assembly, which chooses each year from at least three nominated by the board of directors. The board nominates and the Assembly chooses.
- Fees: approved by the General Assembly.
- Reappointment: the Assembly may reappoint the auditor for a term or terms not exceeding four consecutive years in total.
- Report: the auditor submits to the General Assembly an annual report of his or her findings in accordance with the accounting auditing standards approved in the Kingdom, and sends a copy to the Ministry.
The purpose of these provisions is to ensure the auditor's independence from the management whose work is being audited, since the text puts the choice and fees in the hands of the General Assembly, which includes the subscribers, and limits how long the same auditor can remain so that the relationship does not become too long.
The article comes after Article 36, which controls spending from the budget, and before Article 38, which requires the budget, financial statements and final accounts to be published as the Regulations set out.
Practical example
The board of a chamber of commerce nominates three licensed audit firms, and the General Assembly chooses one of them and approves its fees. After four consecutive years of reappointment, the Assembly may not reappoint it again, under the limit in the article.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 37 of the Saudi Chambers of Commerce Law
Who chooses the auditor of a chamber of commerce?
The chamber's General Assembly chooses the auditor each year from at least three nominated by the board of directors.
What is the maximum term of a chamber's auditor?
The auditor may be reappointed for a term or terms not exceeding four consecutive years in total.
Who does the auditor submit the report to?
To the chamber's General Assembly, with a copy sent to the Ministry.
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 36
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.
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 ما
- 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.