Article 251 of the Saudi Companies Law
المادة 251 من نظام الشركات · الباب الثاني عشر: انقضاء الشركة وتصفيتها
The article requires multiple liquidators to act together, and their acts are valid only by unanimity, unless the decision appointing them provides otherwise or the authority that appointed them permits it.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا تعدد المصفون وجب عليهم أن يعملوا مجتمعين، ولا تكون تصرفاتهم صحيحة إلا بإجماعهم، ما لم ينص قرار تعيينهم أو تصرح لهم الجهة التي عينتهم بغير 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 251 explained in plain English
This article addresses the case in which more than one liquidator is appointed for the company, which calls for regulating how they work together.
The rule: If there are several liquidators, they must act together, and their acts are valid only by their unanimity. One of them alone cannot sell an asset of the company or conclude an agreement in its name.
The exception: This rule may be departed from in two cases:
- If the decision appointing the liquidators provides otherwise, for example by dividing the tasks among them or allowing each of them to act alone.
- If the authority that appointed them permits them otherwise.
Article 250 regulates the removal of a liquidator and the appointment of his replacement, and Article 252 specifies the liquidator's powers to represent the company and convert its assets into cash.
When dealing with a company that has more than one liquidator, it is wise to verify the decision appointing them, and you can use a lawyer specializing in commercial matters and companies.
Practical example
The partners in a company in Dammam appointed two liquidators without the decision providing for dividing the work between them. If one of them alone signs a contract to sell the company's cars, his act is not valid because the unanimity of both is required, unless the appointment decision or the authority that appointed them permitted acting alone.
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 251 of the Saudi Companies Law
Can one of the liquidators act alone?
No. If there are several liquidators, their acts are valid only by their unanimity, unless the decision appointing them provides otherwise or the authority that appointed them permits it.
What is the rule on multiple liquidators in the Companies Law?
They must act together unless the appointment decision provides otherwise or the authority that appointed them permits it.
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.