Article 41 of the Saudi Chambers of Commerce Law
المادة 41 من نظام الغرف التجارية · الفصل الأول: التشكيل والمهمات
Article 41 gives the Federation of Chambers legal personality and financial and administrative independence under the Ministry's supervision, represented by its board chairman, with the right to own property but not to engage in commercial activities.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يتمتع اتحاد الغرف بالشخصية الاعتبارية والاستقلال المالي والإداري، ويعمل تحت إشراف الوزارة، ويمثله رئيس مجلس إدارته أمام القضاء والغير، وله تفويض من يراه في هذا الشأن.
2- لاتحاد الغرف حق التملك، ولا يجوز له الاشتغال -بنفسه أو بالمشاركة مع غيره- في الأنشطة التجارية.
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 41 explained in plain English
This article sets out the Federation of Chambers' legal status and the limits of its activity.
Paragraph 1:
- The Federation has legal personality, meaning an independent legal entity that contracts, sues and is sued in its own name.
- It enjoys financial and administrative independence, but works under the supervision of the Ministry of Commerce.
- It is represented by the chairman of its board of directors before the courts and third parties, and the chairman may delegate whoever he or she sees fit to do so.
Paragraph 2:
- The Federation has the right to own property.
- It may not engage in commercial activities, either by itself or in partnership with others.
The ban on engaging in trade is consistent with Article 40, which provides that the Federation is a non-profit entity that represents commercial activities and looks after their interests, so it does not compete with the merchants it represents. The right to own property lets it own the assets it needs to carry out its duties.
It is followed by Article 42, which lists the Federation's duties. Anyone with a dispute with the Federation can consult a lawyer specializing in commercial and corporate matters to understand their position.
Practical example
A company in Riyadh wants to bring a claim against the Federation of Chambers over a contract it concluded with it. Under the article, the Federation has legal personality, and it is represented before the courts by the chairman of its board or whoever he or she delegates.
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 41 of the Saudi Chambers of Commerce Law
Does the Federation of Chambers have legal personality?
Yes. It has legal personality and financial and administrative independence, and works under the Ministry's supervision.
Who represents the Federation of Chambers before the courts?
The chairman of its board of directors represents it before the courts and third parties, and may delegate whoever he or she sees fit.
May the Federation of Chambers engage in commercial activities?
No. It may not engage in commercial activities, by itself or in partnership with others, although it has the right to own property.
More articles on Federation of Chambers of Commerce
- Article 40
Article 40 defines the Federation of Chambers as a non-profit entity that looks after the chambers' shared interests and represents commercial activities nationally inside and outside the Kingdom; it is the chambers' main reference, based in Riyadh.
اتحاد الغرف كيان غير ربحي، يهدف إلى رعاية المصالح المشتركة للغرف، وتمثيل مختلف الأنشطة التجارية على المستوى الوطني داخل المملكة وخارجها، والعمل على حمايتها وتطو
- Article 42
Article 42 lists 22 duties of the Federation of Chambers, including representing the chambers nationally and internationally, studies, exhibitions and delegations, national committees, joint business councils, and resolving disputes between chambers and between their board members.
يتولى اتحاد الغرف المهمات الآتية: 1- تمثيل الغرف التجارية في شتَّى الأنشطة التجارية على المستوى الوطني داخل المملكة وخارجها. 2- العناية بالمصالح المشتركة للغرف،
- Article 54
Article 54 lists the Federation's resources: a percentage of chambers' subscriptions and of their attestation fees set by the Regulations, investment returns, accepted donations, and fees for publications, training and activities.
تتكون موارد اتحاد الغرف المالية مما يأتي: 1- نسبة مئوية من الاشتراكات التي تحصلها الغرف من المشتركين فيها، وتحدد اللائحة هذه النسبة. 2- عوائد استثمار أصول اتحاد
- Article 55
The Federation has a licensed auditor chosen each year by the General Assembly from three nominated by the board, for no more than four consecutive years, who submits an annual report with a copy to the Ministry.
يكون لاتحاد الغرف مراجع حسابات (أو أكثر) من بين مراجعي الحسابات المرخص لهم بالعمل في المملكة، تختاره الجمعية العمومية سنويًّا من بين ثلاثة على الأقل يرشحهم مجلس
- Article 56
Article 56 requires the Federation of Chambers' budget, financial statements and final accounts to be published as the Implementing Regulations set out.
تُنشر ميزانية اتحاد الغرف وقوائمه المالية وحسابه الختامي، وفقاً لما تحدده اللائحة.
- Article 60
The Law's provisions on chambers apply to the Federation of Chambers where it has no specific provision of its own, and so far as they do not conflict with the Federation's nature and duties.
تسري الأحكام الواردة في النظام المتعلقة بالغرف -فيما لم يرد فيه حكم خاص باتحاد الغرف في النظام- على الاتحاد، وذلك فيما لا يتعارض مع طبيعة الاتحاد ومهماته.
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.