Article 33 of the Saudi Companies Law
المادة 33 من نظام الشركات · الفصل الثالث: إدارة الشركة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 انتقل حق الدائن إلى نصيب مدينه فيما يفيض من أموالها بعد سداد ديونها.
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 33 explained in plain English
This article deals with a person who has a personal debt against a partner or shareholder, that is, a debt not relating to the company itself, and wants to collect it from this partner's rights in the company.
The text gives this creditor the right to ask the competent judicial body to collect their right from the debtor partner's or shareholder's share of net distributed profits. The right here is tied to the profits the company actually distributes to their debtor, not to the company's funds themselves.
If the company ends, the creditor's right moves to their debtor's share of what remains of the company's funds after its debts are paid. This means the company's creditors are served first, and then comes the turn of the partner's personal creditor against what remains of their debtor's share.
Note that the article does not give the personal creditor a direct right in the company's funds, and the route it lays out is a request to the competent judicial body.
Article 34 adds another means to this right, since it allows the personal creditor, subject to the Security Over Movable Assets Law and other related laws, to ask for the sale of what is needed of the partner's shares or the shareholder's stock so as to collect their right from the sale proceeds. Article 32 concerns the costs of a liability action brought by a partner or shareholder.
To learn the procedures suited to your case, it is advisable to consult a lawyer specialized in company and commercial matters.
Practical example
Khalid lent his friend Fahd an amount that has not been repaid, and Fahd is a partner in a company in Dammam that distributes annual profits. Khalid can ask the competent judicial body to collect his debt from Fahd's share of the net distributed profits. If the company ends, Khalid's right moves to Fahd's share of what remains of its funds after its debts are paid.
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 33 of the Saudi Companies Law
Can a partner's creditor seize the company's funds?
The article gives the personal creditor the right to ask to collect their debt from their debtor's share of net distributed profits, not from the company's funds themselves.
What happens to the creditor's right if the company ends?
Their right moves to their debtor's share of what remains of the company's funds after its debts are paid.
To whom does a partner's creditor submit their request?
To the competent judicial body, according to the text of the article.
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- Article 16
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تكون السنة المالية للشركة (اثني عشر) شهرًا تُحدد في عقد تأسيسها أو نظامها الأساس. ومع ذلك، يجوز أن تحدد السنة المالية الأولى بما لا يقلّ عن (ستة) أشهر ولا يزيد
- Article 17
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- Article 18
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1- يكون للشركة مراجع حسابات (أو أكثر) من المراجعين المرخص لهم في المملكة يعينه ويحدد أتعابه ومدة عمله ونطاقه الشركاء أو الجمعية العامة أو المساهمون بحسب الأحوال
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- Article 20
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1- يجب أن يتصف مراجع حسابات الشركة بالاستقلال وفقًا لما تحدده المعايير المهنية المعتمدة في المملكة. 2- لا يجوز الجمع بين عمل مراجع الحسابات والاشتراك في تأسيس ا
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.