Article 39 of the Saudi Commercial Maritime Law
المادة 39 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article makes each joint owner bear a share of the joint ownership's expenses and losses in proportion to his share in the ship, unless otherwise agreed, and entitles him to the net profits in the same proportion.
Official text (Arabic)
This article has not been amended since the law was issued.
يتحمل كل مالك في الشيوع نصيباً من نفقات الشيوع والخسارة بحسب نسبة حصته في ملكية السفينة، ما لم يتفق على غير ذلك، ويكون له نصيب في الأرباح الصافية الناتجة عن استغلال السفينة بالنسبة نفسها.
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 39 explained in plain English
This article sets the rule for distributing burdens and returns among the joint owners of a ship.
1. Expenses and loss: each owner bears a share of the joint ownership's expenses and losses in proportion to his share in ownership of the ship.
2. Contrary agreement: under the wording of the article, the owners may agree otherwise on expenses and losses.
3. Profits: each owner has a share in the net profits resulting from operating the ship, in the same proportion.
In practical terms, the default is proportionality: a person who owns 30% of the ship bears 30% of its expenses and losses and takes 30% of its net profits. The profit meant is the net profit, that is, after deducting expenses. The partners may agree on a different distribution of expenses and losses.
This article does not address the owners' liability toward creditors; it regulates the relationship among the owners themselves. A person entering as a partner in the ownership of a ship can consult a lawyer specializing in commercial cases to draft an agreement that clarifies these matters.
Practical example
Three partners own a fishing ship in shares of 50%, 30% and 20%. The ship makes a net profit of SAR 200,000 in the season, so their shares are SAR 100,000, SAR 60,000 and SAR 40,000, and they bear expenses and losses in the same proportion unless they agree otherwise.
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 39 of the Saudi Commercial Maritime Law
How are a ship's profits distributed among the partners?
Each owner has a share in the net profits from operating the ship in proportion to his share in its ownership.
Can a different distribution of expenses be agreed?
Yes. The default is distribution according to shares unless otherwise agreed.
More articles on Ship Construction and Co-Ownership
- Article 31
The article requires a ship construction contract, and any amendment to it, to be proved in writing, and the contract is valid only if signed by its parties.
يثبت عقد بناء السفينة وأي تعديل يطرأ عليه بالكتابة، ولا يكون صحيحاً إلا بتوقيع أطرافه عليه.
- Article 32
The article provides that ownership of the ship remains with the builder and passes to the party ordering it only on accepting delivery after trials, unless agreed otherwise.
تبقى ملكية السفينة لمتعهد البناء، ولا تنتقل ملكيتها إلى طالب البناء إلا بقبول تسلمها بعد تجربتها، ما لم يتفق على غير ذلك.
- Article 33
The article makes the ship builder guarantee that the ship is free of hidden defects, even if the party ordering it accepted delivery after trials.
يضمن متعهد بناء السفينة خلوها من العيوب الخفية، وإن قبل طالب البناء تسلم السفينة بعد تجربتها.
- Article 34
The article provides that a suit for guarantee of hidden defects is not heard after one year from the date of learning of the defect.
لا تسمع دعوى ضمان العيوب الخفية بعد مضي سنة من تاريخ العلم بالعيب.
- Article 35
The article extends the hidden-defect guarantee and the one-year period from learning of the defect, set in Articles 33 and 34, to ship repair contracts.
تسري أحكام المادتين (الثالثة والثلاثين) و(الرابعة والثلاثين) على عقود إجراء إصلاحات السفينة.
- Article 36
The article requires acts creating, transferring or ending ownership of a ship or other real rights in it to be proved by an official document, otherwise void, and they are effective against third parties only once entered in the ship's register.
1- تُثبت التصرفات التي يكون موضوعها إنشاء حق الملكية أو نقله أو انقضاءه، أو غير ذلك من الحقوق العينية على السفينة؛ بمحرر رسمي، وإلاَّ كانت باطلة. وإذا وقعت هذه
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.