Article 43 of the Saudi Commercial Maritime Law
المادة 43 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article requires approval of owners holding at least three-quarters of the shares to sell a jointly owned ship, and lets any owner ask the court to end the joint ownership by sale where a dispute makes it impossible to continue usefully.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يجوز بيع سفينة مملوكة بالشيوع إلاَّ بقرار يصدر بموافقة المالكين الحائزين لثلاثة أرباع الحصص على الأقل، ويبين في القرار كيفية حصول البيع وشروطه.
2- يجوز لكل مالك، عند وقوع خلاف بين المالكين يتعذر معه استمرار الشيوع على وجه مفيد؛ أن يطلب من المحكمة المختصة الحكم بإنهاء حالة الشيوع ببيع السفينة، ويبين الحكم كيفية حصول البيع وشروطه.
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 43 explained in plain English
This article regulates selling the whole ship when it is jointly owned, in two ways:
1. Sale by the owners' decision:
- It is permitted only by a decision issued with the approval of owners holding at least three-quarters of the shares.
- The decision states how the sale is to take place and its conditions.
2. Sale by court judgment:
- Each owner may, where there is a dispute among the owners that makes it impossible to continue the joint ownership usefully, ask the competent court to rule to end the joint ownership by selling the ship.
- The judgment states how the sale is to take place and its conditions.
In practical terms, selling the whole ship by the owners' decision requires a quorum of at least three-quarters of the shares. But if the partners reach a deadlock, any one of them, even with a small share, may go to court to end the joint ownership. The condition here is that the dispute has made it impossible to continue the joint ownership usefully, and assessing that is for the court.
This article differs from Article 42, which concerns only one owner's sale of his share. A person who faces a dispute with their partners in a ship would do well to consult a lawyer specializing in commercial cases.
Practical example
Five partners in a cargo ship disagree over how to operate it and continuing is no longer possible. Any of them may ask the competent court to end the joint ownership by selling the ship, and the judgment states how the sale is to take place and its conditions.
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 43 of the Saudi Commercial Maritime Law
What quorum is needed to sell a jointly owned ship?
A decision approved by the owners holding at least three-quarters of the shares, stating how the sale is to take place and its conditions.
Can a minor partner ask for the ship to be sold?
Yes. Each owner may, where a dispute makes it impossible to continue the joint ownership usefully, ask the court to end the joint ownership by selling the ship.
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.