Article 249 of the Saudi Companies Law
المادة 249 من نظام الشركات · الباب الثاني عشر: انقضاء الشركة وتصفيتها
The article requires the liquidator to register and publish his appointment decision with the commercial register, and his appointment and the liquidation procedures may not be invoked against third parties except from the date of registration and publication.
Official text (Arabic)
This article has not been amended since the law was issued.
على المصفي أن يقيد ويشهر قرار تعيينه لدى السجل التجاري، ولا يحتج بتعيينه أو بإجراءات التصفية في مواجهة الغير إلا من تاريخ القيد والشهر.
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 249 explained in plain English
After the liquidator is appointed, this article imposes a mandatory step on him: to register and publish his appointment decision with the commercial register.
The effect of this is important:
- The liquidator's appointment may not be invoked against third parties except from the date of registration and publication.
- The liquidation procedures may not be invoked against third parties except from that date as well.
Third parties means those who deal with the company from outside, such as creditors, customers and suppliers. Registration and publication are the means of informing them that the company is in liquidation and who represents it, and before that, the appointment or the liquidation procedures cannot be relied on against them.
This article is linked to Article 248, which regulates who appoints the liquidator and the powers, fees, restrictions and period his appointment decision contains. It is also connected to Article 250, which provides that the liquidator is removed in the way he was appointed, and that the competent judicial authority may remove him at the request of any partner, shareholder or creditor for acceptable reasons, appointing a replacement and fixing his powers and fees.
To learn the effect of non-registration on a particular transaction with a company in liquidation, you can consult a lawyer specializing in commercial matters and companies.
Practical example
The partners in a company in Jeddah appointed a liquidator, but he was late in registering and publishing his appointment decision with the commercial register. During this period he cannot invoke his appointment or the liquidation procedures against a supplier dealing with the company; this becomes possible only from the date of registration and publication.
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 249 of the Saudi Companies Law
Must the liquidator be registered in the commercial register?
Yes. The liquidator must register and publish his appointment decision with the commercial register.
When does the liquidator's appointment apply against creditors and third parties?
His appointment or the liquidation procedures may not be invoked against third parties except from the date of registration and publication with the commercial register.
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.