Article 41 of the Saudi Commercial Maritime Law
المادة 41 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article lets a joint owner dispose of his share without the others' consent unless that would cost the ship its Saudi nationality, requires approval of three-quarters of the shares to mortgage a share, and keeps the seller liable until the disposal is published.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لكل مالك في الشيوع حق التصرف في حصته دون موافقة المالكين الآخرين إلاَّ إذا كان من شأن التصرف فقدان السفينة الجنسية السعودية، فيلزم أن يوافق عليه جميع المالكين.
2- لا يجوز للمالك رهن حصته في السفينة إلاَّ بموافقة المالكين الحائزين لثلاثة أرباع الحصص على الأقل.
3- يكون المالك الذي تصرف في حصته مسؤولاً عن الديون التي تتعلق بالشيوع حتى تاريخ شهر التصرف في صحيفة تسجيل السفينة.
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 regulates a partner's disposal of his share in a jointly owned ship:
1. Disposing of the share:
- The rule: each owner may dispose of his share without the consent of the other owners.
- The exception: if the disposal would cause the ship to lose Saudi nationality, the consent of all the owners is required.
2. Mortgaging the share: permitted only with the consent of the owners holding at least three-quarters of the shares.
3. Liability after disposal: the owner who disposed of his share remains liable for the joint ownership's debts until the date the disposal is published in the ship's registration sheet.
In practical terms, a partner is by default free to sell his share, but if the disposal would cause the ship to lose Saudi nationality, he needs everyone's consent. A mortgage has a higher quorum than the ordinary majority. After a sale, the seller's liability for the joint ownership's debts ends only when the disposal is published in the registration sheet.
A person who wants to sell or mortgage a share in a ship would do well to consult a lawyer specializing in commercial cases to verify the approvals and publication.
Practical example
Saud owns 30% of a Saudi ship with Saudi partners, and wants to mortgage his share with a bank to finance a project. He needs the consent of the owners holding at least three-quarters of the shares.
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 Commercial Maritime Law
Do I need my partners' consent to sell my share in a ship?
Not by default, unless the disposal would cause the ship to lose Saudi nationality, in which case all owners must consent.
Can I mortgage my share in the ship?
Yes, with the consent of the owners holding at least three-quarters of the shares.
When does my liability for the ship's debts end after I sell my share?
The owner remains liable for the joint ownership's debts until the date the disposal is published in the ship's registration sheet.
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.