Article 60 of the Saudi Commercial Maritime Law
المادة 60 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
The article permits the mortgage of a co-owned ship with the approval of owners holding at least three quarters of the shares; if that is not obtained, the matter may be referred to the court to rule in line with the owners' interest.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا كانت السفينة مملوكة على الشيوع جاز رهنها بموافقة المالكين الحائزين لثلاثة أرباع الحصص على الأقل، فإذا لم تتوافر هذه الأغلبية، جاز رفع الأمر إلى المحكمة المختصة، لتحكم بما يتفق مع مصلحة المالكين على الشيوع.
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 60 explained in plain English
This article regulates the mortgage of the whole ship when it is co-owned.
1. The quorum: it may be mortgaged with the approval of owners holding at least three quarters of the shares.
2. If the quorum is not obtained: the matter may be referred to the competent court, which rules in line with the interest of the co-owners.
In practical terms, a simple majority is not enough to mortgage a jointly owned ship; three quarters of the shares are needed. If partners holding more than a quarter of the shares refuse, the matter does not end there, because it can be put to the court, which considers the interest of all the owners. The article does not specify who refers the matter to the court, or the detailed criteria for assessing the interest.
This rule is linked to Article 59, which provides that a ship mortgage is not concluded except by an official contract; approval by the quorum does not replace the official form. Mortgaging the whole ship differs from a partner mortgaging his own share alone.
A person considering a mortgage on a ship owned in partnership may consult a lawyer specializing in commercial matters or banking and finance.
Practical example
Four partners own a ship in equal shares (25% each), and three of them approved mortgaging it to finance its upgrade. Their approval represents 75% of the shares, so the quorum is met, and the mortgage is then concluded by an official contract.
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 60 of the Saudi Commercial Maritime Law
What quorum is required to mortgage a co-owned ship?
The approval of owners holding at least three quarters of the shares.
What if three quarters of the partners do not approve?
The matter may be referred to the competent court, which rules in line with the interest of the co-owners.
More articles on Maritime Liens and Mortgages
- Article 46
The article lists the debts that carry a maritime lien on the ship, from court costs and crew employment debts to fees, salvage rewards, compensation and the master's contract debts.
تشمل حقوق الامتياز على السفينة ما يأتي: 1- المصروفات القضائية التي أنفقت لحفظ السفينة وبيعها وتوزيع ثمنها. 2- الديون الناشئة عن عقد عمل الربان والبحارة وغيرهم م
- Article 47
The article provides that maritime liens on a ship are not subject to any formality or any special requirement of proof.
لا تخضع حقوق الامتياز لأي إجراء شكلي، أو لأي شرط خاص بالإثبات.
- Article 48
The article specifies the property that the Article 46 liens attach to: the ship, the freight of the voyage that gave rise to the debt, and their accessories, with a special rule for the paragraph 3 lien.
1- تترتب حقوق الامتياز المنصوص عليها في المادة (السادسة والأربعين) على السفينة، وأجرة النقل الخاصة بالرحلة التي نشأ عنها الدين، وعلى ملحقات كل من السفينة، وأجرة
- Article 49
The article defines what counts as accessories of the ship and the freight subject to the lien, such as compensation for unrepaired damage and salvage rewards; passenger fares count as freight; insurance compensation and State subsidies are excluded.
1- يعد من ملحقات السفينة وأجرة النقل المنصوص عليها في الفقرة (1) من المادة (الثامنة والأربعين) ما يأتي: أ- التعويضات المستحقة للمالك عن الأضرار المادية التي لحق
- Article 50
The article provides that the lien on freight remains as long as the freight is payable or is held by the master or the owner's representative, and likewise the lien on the accessories of the ship and the freight.
يبقى حق الامتياز على أجرة النقل قائماً ما دامت الأجرة مستحقة الدفع، أو كانت تحت يد الربان أو ممثل المالك، وكذلك الحال بالنسبة إلى الامتياز على ملحقات السفينة وم
- Article 51
The article sets the ranking of liens for a single voyage in the order of Article 46, with proportional sharing within one paragraph, reverse chronological order for paragraphs (4) and (6), and one date for rights arising from one incident.
1- تُرتب حقوق الامتياز المتعلقة برحلة واحدة وفقاً للترتيب الوارد في المادة (السادسة والأربعين) من النظام. 2- تكون للحقوق المذكورة في كل فقرة من المادة (السادسة
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.