Article 532 of the Saudi Civil Transactions Law
المادة 532 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الشركة
The article provides that each partner's share is determined by what he undertook in the partnership contract, and that he may not increase it except with the consent of the other partners.
Official text (Arabic)
This article has not been amended since the law was issued.
تتحدد حصة كل شريك بالحصة التي التزم بها في عقد الشركة، ولا يجوز للشريك زيادة حصته عن الحصة المحددة في عقد الشركة إلا بموافقة باقي الشركاء.
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 532 explained in plain English
This article sets two simple but important rules in the partners' relationship:
- The contract is the reference for determining shares: Each partner's share is determined by the share he undertook in the partnership contract. What is written in the contract shows each one's portion.
- No increase on one's own: A partner may not increase his share above the share set in the contract except with the consent of the other partners.
The reason for barring a unilateral increase is that increasing one partner's share changes the balance among the partners, since shares determine each partner's position in the partnership. If a partner were allowed to put in additional money whenever he liked to raise his proportion, the rights of the others would change without their consent.
This article follows Article 531, which allows a partnership to be based on the partners' joint liability for what they undertake in their obligations, makes each one's share equal to what he undertook unless otherwise agreed, and allows them to differ in their obligations. It is followed by Article 533, which sets out the rules that apply to the guarantee of a share if it is a right of ownership or another real right, or merely the use of property.
If you want to change the shares in an existing partnership, it is advisable to consult a lawyer specializing in civil or company matters so that the partners' consent is documented properly.
Practical example
Two partners in a restaurant in Jeddah each hold a 50% share under the contract. One of them wanted to pay an additional sum so that his portion would become 70%. He may not do so except with his partner's consent.
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 contentA question about Article 532 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 532 of the Saudi Civil Transactions Law
How is a partner's share determined?
It is determined by the share he undertook in the partnership contract.
Is a partner entitled to increase his share in the partnership?
He may not increase it above the share set in the contract except with the consent of the other partners.
More articles on Partnership and Mudaraba
- Article 528
The article requires partnership contracts and their amendments to be in writing or be void, while barring reliance on the voidness against third parties and limiting its effect between the contracting parties to the period after a voidness claim is filed.
1- يجب أن تكون عقود المشاركة الواردة في هذا الباب مكتوبة، وإلا كانت باطلة، ولا يجوز أن يحتج المتعاقد بالبطلان تجاه الغير، ولا يكون للبطلان أثر فيما بين المتعاقد
- Article 529
The article defines the partnership as a contract under which two or more partners contribute a share of money, work, or both to a project in order to divide its profit or loss, and excludes partnerships governed by special legal provisions.
1- الشركة عقد يسهم بمقتضاه شريكان أو أكثر بتقديم حصة من مال أو عمل أو منهما معًا في مشروع لاقتسام ما ينشأ عنه من ربح أو خسارة. 2- لا تسري أحكام هذا الفصل على ال
- Article 530
The article bars a partner's influence, reputation or financial credibility from being his share, explains how a non-cash share is valued, and says when a partner's obligation ends if his share is a debt owed by a third party.
1- لا يصح أن تكون الحصة أو بعضها ما للشريك من نفوذ أو سمعة أو ثقة مالية. 2- إذا كانت حصة الشريك غير نقدية، قُدرت الحصة بقيمتها عند التعاقد أو بما يتفق عليه الشر
- Article 531
The article allows a partnership to be based on the partners' joint liability for what they undertake in their obligations for its benefit, makes each partner's share in the capital equal to what he undertook unless otherwise agreed, and allows partners to differ in their obligations.
1- يصح أن تقوم الشركة على أساس تضامن الشركاء فيما يلتزمون به في ذممهم من مال أو عملٍ لمصلحة الشركة، وتكون حصة كل منهم في رأس مال الشركة بقدر ما التزم به في ذمته
- Article 533
The article subjects the guarantee of a partner's share to the rules of sale if it is a right of ownership or another real right, and to the rules of lease if it is merely the use of property.
إذا كانت حصة الشريك حق ملكية أو أي حق عينيّ آخر فإن أحكام البيع هي التي تسري على ضمان الحصة إذا هلكت أو استحقت أو ظهر فيها عيب، وإذا كانت الحصة مجرد الانتفاع با
- Article 534
The article makes the division of profits in proportion to each partner's share unless otherwise agreed, and distributes losses in proportion to each partner's share.
1- تكون قسمة الأرباح بين الشركاء بنسبة حصة كل شريك في الشركة، ما لم يتفق على خلاف ذلك. 2- توزع الخسائر بين الشركاء بنسبة حصة كل منهم في الشركة.
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.