Article 45 of the Saudi Commercial Maritime Law
المادة 45 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article provides that co-ownership of a ship does not end on the death, legal restriction, declared bankruptcy or insolvency of one of the owners, unless otherwise agreed.
Official text (Arabic)
This article has not been amended since the law was issued.
لا ينقضي الشيوع بوفاة أحد المالكين، أو الحجر عليه، أو شهر إفلاسه، أو إعساره، إلاَّ إذا اتفق على غير 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 45 explained in plain English
This article provides that co-ownership continues in the ship despite circumstances that may affect one of the co-owners.
Situations that do not end the co-ownership:
- The death of one of the owners.
- A court order restricting his legal capacity to manage his property.
- A declaration of his bankruptcy.
- His insolvency.
Exception: if the owners agree otherwise.
In practical terms, a jointly owned ship stays jointly owned after a co-owner dies or runs into financial difficulty, and the partnership does not stop automatically. The article does not explain how the share of the deceased, restricted or bankrupt co-owner is managed afterward, or who represents it; other rules govern those questions. But it settles that the co-ownership itself continues.
The co-owners may agree in advance that the co-ownership ends upon any of these events, or make a different arrangement. This rule is linked to Article 44, which regulates attachment of ship shares and judicial sale.
A co-owner of a ship, or the heir of one, may consult a lawyer specializing in commercial cases to understand his position.
Practical example
One of three co-owners of a fishing vessel died. The co-ownership does not end on his death, unless the co-owners had agreed 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 45 of the Saudi Commercial Maritime Law
Does joint ownership of a ship end when one of the co-owners dies?
No. The co-ownership does not end on the death of one of the owners unless otherwise agreed.
What happens if one of the co-owners goes bankrupt?
The co-ownership does not end on the declaration of an owner's bankruptcy or on his insolvency or legal restriction, 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.