Article 48 of the Saudi Companies Law
المادة 48 من نظام الشركات · الفصل الرابع: الحصص والشركاء في شركة التضامن
Article 48 requires, before a partner is asked to pay a company debt from their own funds, that the debt be established by final judgment or enforceable instrument, the company be put on notice, and collection from it prove impossible, and gives the partner recourse against the other partners.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا تجوز مطالبة الشريك بأن يؤدي من ماله دينًا على الشركة إلا بعد ثبوت هذا الدين في ذمتها بناء على حكم قضائي نهائي أو سند تنفيذي، وبعد إعذارها بالوفاء وتعذر استيفاء الحق منها.
2- للشريك عند وفائه بدين الشركة الرجوع على باقي الشركاء بنسبة ما دفعه عن حصة كل منهم.
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 48 explained in plain English
This article sets controls on claiming against a partner in a general partnership company for the company's debts, and protects their right after payment.
1- Conditions for claiming against a partner: a partner may not be required to pay a debt of the company from their own funds except after the following are met:
- The debt is established against the company on the basis of a final judgment or an enforceable instrument.
- The company has been put on notice to pay, that is, formally demanded to pay.
- Collection of the right from it has proved impossible.
The creditor thus begins with the company itself, and moves on to the partner's funds only once these conditions are met.
2- The partner's recourse against their partners: if a partner pays the company's debt, they may have recourse against the other partners in proportion to what they paid for each one's share, so they do not bear the debt alone in the end.
This article differs from Article 47, which concerns the distribution of profits and losses among the partners and bars requiring a partner to make up what has been lost of their share in the capital because of losses without their consent; Article 48 concerns the partner's relationship with the company's creditors. The article does not set out the method of putting on notice or the enforcement procedures, which are left to the relevant laws.
If you are claimed against for a debt of your company or want to have recourse against your partners, it is advisable to consult a lawyer specialized in company and commercial matters.
Practical example
A final court judgment was issued in favor of a supplier against a general partnership company in Tabuk for an amount due, and the supplier put the company on notice to pay but could not collect his right from it. He may then claim against one of the partners, Saleh, to pay the debt from his own funds. If Saleh pays the amount, he may have recourse against each of his partners in proportion to what he paid for that partner's share.
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 48 of the Saudi Companies Law
When can a partner in a general partnership company be claimed against for the company's debts from their own money?
After the debt is established against the company by a final judgment or an enforceable instrument, the company is put on notice to pay, and collection of the right from it has proved impossible.
Does the partner who paid the company's debt bear the amount alone?
No. They may have recourse against the other partners in proportion to what they paid for each one's share.
More articles on General Partnership
- Article 19
The article exempts micro and small companies and the general partnership company from the requirement to appoint an auditor in Article 18, with specified exceptions, and allows holders of 10% of voting rights to request that one be appointed.
1- لا يسري على الشركة متناهية الصغر والصغيرة الحكم المتعلق بإلزامية تعيين مراجع الحسابات الوارد في المادة (الثامنة عشرة) من النظام، عدا الشركة متناهية الصغر وال
- Article 35
Article 35 defines the general partnership company as one formed by two or more persons, each personally and jointly liable with all their assets for its debts, and in which the partner acquires the status of a merchant.
شركة التضامن: هي شركة يؤسسها شخصان أو أكثر من ذوي الصفة الطبيعية أو الاعتبارية يكونون فيها مسؤولين شخصيًّا في جميع أموالهم وبالتضامن عن ديون الشركة والتزاماتها،
- Article 36
Article 36 sets out the data the formation contract of a general partnership company must contain in particular, from the partners' names and capital to management, profits, and dissolution.
يجب أن يشتمل عقد تأسيس شركة التضامن بصفة خاصة على البيانات الآتية: أ- أسماء الشركاء، وبياناتهم. ب- اسم الشركة. ج- المركز الرئيس للشركة. د- غرض الشركة. هأ- رأس م
- Article 37
Article 37 regulates a general partnership company's management: by the partners or a manager they appoint, with rules on multiple managers, their powers, and the company's commitment to their acts within its purpose.
1- يتولى إدارة شركة التضامن الشركاء فيها، ويحدد الشخص ذو الصفة الاعتبارية ممثله في الإدارة. ويجوز أن يتفق الشركاء في عقد تأسيس الشركة أو في عقد مستقل، على تعيين
- Article 38
Article 38 makes partners' resolutions in a general partnership company by numerical majority and requires their unanimity to amend the formation contract unless the contract provides otherwise.
تصدر قرارات الشركاء بالأغلبية العددية، إلا إذا كان القرار متعلقًا بتعديل عقد تأسيس الشركة فيجب أن يصدر بإجماع الشركاء، ما لم ينصّ في عقد التأسيس على غير ذلك.
- Article 39
Article 39 bars a general partnership's manager from acts beyond the company's purpose unless the partners resolve otherwise or the formation contract expressly allows it, and lists acts to which the bar applies in particular.
يحظر على المدير أن يباشر الأعمال التي تتجاوز غرض الشركة إلا بقرار من الشركاء أو بنصّ صريح في عقد تأسيس الشركة. ويسري هذا الحظر بصفة خاصة على الأعمال الآتية: أ-
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.