Article 248 of the Saudi Companies Law
المادة 248 من نظام الشركات · الباب الثاني عشر: انقضاء الشركة وتصفيتها
The article regulates appointing the liquidator by a partners' decision within 60 days of the ending, or by a court decision if that is not possible or the company is dissolved by court, and requires verifying the assets and fixing his powers and fees.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يكون تعيين المصفي بقرار من الشركاء أو الجمعية العامة أو المساهمين وفقًا للأوضاع المقررة لتعديل عقد تأسيس الشركة أو نظامها الأساس بحسب شكل الشركة، وذلك خلال مدة لا تتجاوز (ستين) يومًا من تاريخ انقضاء الشركة. وإذا تعذر تعيين المصفي خلال تلك المدة؛ يكون تعيينه بقرار من الجهة القضائية المختصة بناء على طلب يقدمه أي من الشركاء أو المساهمين أو صاحب مصلحة.
2- استثناء من حكم الفقرة (1) من هذه المادة، إذا كان انقضاء الشركة نتيجة حلها أو بطلانها بحكم قضائي نهائي، عُين المصفي بقرار من الجهة القضائية التي صدر منها ذلك الحكم.
3- تطلب الجهة القضائية المختصة قبل إصدار قرار تعيين المصفي وفقًا لحكم الفقرتين (1) و(2) من هذه المادة، من الشركاء أو المساهمين أو مديري الشركة أو مجلس إدارتها -بحسب الأحوال- تقديم البيان المشار إليه في الفقرة (1) من المادة (الثانية والأربعين بعد المائتين) من النظام أو ما يلزم من بيانات وسجلات محاسبية، أو قوائم مالية إن وجدت، تثبت أن أصول الشركة تكفي لسداد ديونها بنهاية مدة التصفية وفق ما هو منصوص عليه في هذا الباب وأن الشركة غير متعثرة وفقًا لنظام الإفلاس، وذلك خلال مدة لا تتجاوز (ثلاثين) يومًا من تاريخ الطلب، وإذا رأت الجهة القضائية المختصة أن أصول الشركة لا تكفي لسداد ديونها، فعليها اتخاذ ما يلزم لافتتاح أي من إجراءات التصفية وفقًا لنظام الإفلاس.
4- في جميع الأحوال، يجب أن يشتمل قرار تعيين المصفي على تحديد سلطاته وأتعابه، والقيود المفروضة عليه إن وجدت، والمدة اللازمة للتصفية.
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 248 explained in plain English
This article explains how the liquidator is appointed and by whom, and what the decision appointing him must contain.
- The rule: appointment by the company's owners. The liquidator is appointed by a decision of the partners, the general assembly or the shareholders, according to the procedures for amending the articles of association or bylaws depending on the form of the company, within a period not exceeding 60 days of the date the company ended. If that is not possible, the competent judicial authority appoints him at the request of any partner, shareholder or interested party.
- The exception: dissolution or nullity by a final court judgment. Here the liquidator is appointed by a decision of the judicial authority that issued that judgment.
- Verifying solvency before a judicial appointment. Before the competent judicial authority issues the appointment decision in the two cases above, it asks the partners, shareholders, managers or board, as the case may be, to provide the statement referred to in paragraph (1) of Article 242, or the accounting data and records or financial statements, if any, that prove that the assets suffice to pay the debts by the end of the liquidation period and that the company is not in financial distress, within a period not exceeding 30 days of the date of the request. If it considers that the assets do not suffice, it must take what is necessary to open one of the liquidation procedures under the Bankruptcy Law.
- Content of the appointment decision. In all cases the decision must specify the liquidator's powers, his fees, the restrictions imposed on him, if any, and the period needed for liquidation.
Article 247 states that the liquidator may be one or more of the partners, the shareholders or others, and that the liquidation period does not exceed 3 years. Article 249 requires the liquidator to register and publish his appointment decision with the commercial register, and his appointment may not be invoked against third parties except from the date of registration and publication.
To submit an appointment application to the judicial authority, you can use a lawyer specializing in commercial matters and companies.
Practical example
A limited liability company in Riyadh ended on the expiry of its term, and 60 days passed without the partners agreeing on a liquidator. One of the creditors, as an interested party, applied to the competent judicial authority to appoint a liquidator. Before the appointment, the authority asked the manager to provide proof, within 30 days, that the company's assets suffice to pay its debts.
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 248 of the Saudi Companies Law
Who appoints the company's liquidator?
He is appointed by a decision of the partners, the general assembly or the shareholders within 60 days of the ending; if that is not possible, the competent judicial authority appoints him at the request of any partner, shareholder or interested party.
Who appoints the liquidator if the company is dissolved by court judgment?
If the ending results from the company's dissolution or nullity by a final court judgment, the liquidator is appointed by a decision of the judicial authority that issued the judgment.
What must the decision appointing the liquidator contain?
It must specify his powers, his fees, the restrictions imposed on him, if any, and the period needed for liquidation.
Articles this article refers to
More articles on Company Liquidation
- Article 12
The article requires a company's contracts, receipts and documents to show its name, form, address, e-mail and register number, its capital and the paid-up part, and the words "under liquidation" during liquidation.
يجب أن يوضع على العقود والمخالصات وغيرها من الوثائق التي تصدرها الشركة البيانات الآتية: أ- اسم الشركة وشكلها وعنوان مركزها الرئيس وبريدها الإلكتروني -إن وجد- ور
- Article 33
Article 33 allows a partner's or shareholder's personal creditor to ask the competent judicial body to collect from the debtor's share of net distributed profits, and then from their share of the surplus on liquidation.
للدائن الشخصي للشريك أو المساهم أن يطلب من الجهة القضائية المختصة أن يتقاضى حقه من نصيب الشريك أو المساهم المدين في صافي الأرباح الموزعة. فإذا انقضت الشركة انتق
- Article 46
Article 46 regulates a partner's withdrawal from a general partnership on 60 days' notice, their removal under the contract or by court request, registering it with the commercial register, and judicial dissolution of the company.
1- ما لم ينص عقد تأسيس الشركة على غير ذلك، للشريك الانسحاب من الشركة بإرادته المنفردة بشرط إبلاغ باقي الشركاء بذلك قبل (ستين) يومًا على الأقل من التاريخ الذي حد
- Article 50
Article 50 provides that a general partnership does not end on a partner's death, interdiction, bankruptcy, or exit unless the contract says so, and regulates continuing with heirs and minors and the case of one remaining partner.
1- لا تنقضي شركة التضامن بوفاة أي من الشركاء، ولا بالحجر عليه، ولا بافتتاح أي من إجراءات التصفية تجاهه وفقًا لنظام الإفلاس، ولا بإخراجه، ولا بانسحابه، ما لم ينص
- Article 57
Article 57 provides that a simple limited partnership does not end on a limited partner's death, interdiction, insolvency, bankruptcy, or withdrawal unless the formation contract so provides.
لا تنقضي شركة التوصية البسيطة بوفاة أي من الشركاء الموصين، ولا بالحجر عليه، ولا بإعساره، ولا بافتتاح أي من إجراءات التصفية تجاهه وفقًا لنظام الإفلاس، ولا بانسحا
- Article 132
If losses reach half of the issued capital, the board of a joint-stock company must disclose this within 60 days and call the extraordinary general assembly within 180 days to decide whether to continue or dissolve.
إذا بلغت خسائر شركة المساهمة (نصف) رأس المال المصدر، وجب على مجلس الإدارة الإفصاح عن ذلك وعما توصل إليه من توصيات بشأن تلك الخسائر خلال (ستين) يومًا من تاريخ عل
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.