Article 42 of the Saudi Commercial Maritime Law
المادة 42 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article requires an owner who sells his share to a non-partner to notify the other owners in writing of the sale and price, and gives each owner the right to redeem the share within 15 days by paying the price and expenses.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا باع أحد المالكين حصته في السفينة لشخص آخر ليس شريكاً في الشيوع، وجب على البائع إبلاغ المالكين الآخرين كتابيًّا بالبيع، وبالثمن المتفق عليه.
2- يحق لكل مالك أن يسترد الحصة المبيعة بإبلاغ يوجه إلى كل من البائع والمشتري بشرط أن يدفع الثمن والمصروفات، وذلك خلال خمسة عشر يوماً من تاريخ الإبلاغ المنصوص عليه في الفقرة (1) من هذه المادة.
3- إذا طلب الاسترداد أكثر من مالك قُسمت الحصة المبيعة بينهم بحسب نسبة حصصهم، ما لم يتفق على خلاف ذلك.
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 42 explained in plain English
This article gives the ship's partners a right similar to pre-emption when one of them sells his share to a person from outside the joint ownership.
1. Seller's notice: the seller must notify the other owners in writing of the sale and the agreed price.
2. Right of redemption: each owner has the right to redeem the share sold:
- By a notice sent to both the seller and the buyer.
- On condition that he pays the price and expenses.
- Within 15 days of the seller's notice to him.
3. Several owners seeking redemption: if more than one owner requests it, the share is divided among them in proportion to their shares, unless otherwise agreed.
In practical terms, an outsider's entry into the joint ownership is not guaranteed for the buyer, as any of the existing partners may take the share at the same price and expenses within the period. The fifteen days are counted from the date of the written notice, so the notice determines when the period starts.
The article concerns a sale to a non-partner, so it does not apply if the buyer is a partner in the joint ownership. A person who receives notice of a sale of a share in a ship they co-own would do well to consult a lawyer specializing in commercial cases before the period expires.
Practical example
Fahd sells his 20% share in a ship to an investor from outside the partners for SAR 1 million, and notifies his two partners in writing. The two partners wish to redeem, so they send notice to the seller and buyer within 15 days and pay the price and expenses, and the share is divided between them in proportion to their 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 42 of the Saudi Commercial Maritime Law
Can I redeem a share that my partner sold to someone else in the ship?
Yes, by a notice sent to the seller and the buyer within fifteen days of your being notified of the sale, provided you pay the price and expenses.
Must a partner notify us of the sale of his share?
Yes. If the buyer is not a partner, the other owners must be notified in writing of the sale and the agreed price.
What if more than one partner seeks redemption?
The share sold is divided among them in proportion to their 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.