Article 55 of the Saudi Chambers of Commerce Law
المادة 55 من نظام الغرف التجارية · الفصل الثالث: الشؤون المالية لاتحاد الغرف
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 إدارة الاتحاد، ويجوز للاتحاد -بعد موافقة الجمعية- إعادة تعيين المراجع على ألا تتجاوز مدة عمله (أربع) سنوات متتالية.
وعلى المُراجع تقديم تقرير سنوي إلى الجمعية العمومية يتضمن ما توصل إليه وفقًا لمعايير المراجعة المحاسبية المعتمدة في المملكة، وتقديم 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 55 explained in plain English
This article governs the audit of the Federation of Chambers' accounts:
- The auditor: one or more auditors licensed to practice in the Kingdom.
- Selection: the General Assembly chooses the auditor each year from at least three nominated by the Federation's board of directors.
- Reappointment: the Federation may, with the Assembly's approval, reappoint the auditor, provided the auditor's term of work does not exceed four consecutive years.
- Report: the auditor submits an annual report to the General Assembly of his or her findings in accordance with the accounting auditing standards approved in the Kingdom, and provides a copy of it to the Ministry.
The purpose of these provisions is to ensure independent oversight of the Federation's funds: the board nominates, the General Assembly chooses and approves reappointment, the same auditor's time in the role is limited so that the relationship with the Federation does not become too long, and the Ministry receives a copy of the report.
The article comes after Article 54, which lists the Federation's financial resources, and is followed by Article 56, which requires the Federation's budget, financial statements and final accounts to be published as the Regulations set out. The article does not say who approves the fees of the Federation's auditor, so no rule on this can be drawn from it.
Practical example
The board of the Federation of Chambers nominates three licensed audit firms, and the General Assembly chooses one of them. After the year ends, the firm submits its report to the General Assembly and sends a copy to the Ministry, and its appointment may be renewed with the Assembly's approval as long as its term does not exceed four consecutive years.
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 55 of the Saudi Chambers of Commerce Law
Who chooses the auditor of the Federation of Chambers?
The General Assembly chooses the auditor each year from at least three nominated by the Federation's board of directors.
What is the maximum term of the Federation's auditor?
The auditor may be reappointed, with the Assembly's approval, provided the term of work does not exceed four consecutive years.
Does the Ministry see the report of the Federation's auditor?
Yes. The auditor provides a copy of the annual report to the Ministry.
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 41
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.
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 ه
- 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 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.