Article 20 of the Saudi Consumer Protection Association Statute
المادة 20 من تنظيم جمعية حماية المستهلك
The Article permits dissolving the Association if it departs from its objectives, commits a serious violation of the Statute, or violates public order or morals, and sends its assets after liquidation to the nearest charitable or humanitarian body in the Kingdom.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز حل الجمعية إذا خرجت عن أهدافها، أو ارتكبت مخالفة جسيمة للأحكام المنصوص عليها في هذا التنظيم، أو خالفت النظام العام أو الآداب العامة أو التقاليد المراعاة.
2- إذا حُلت الجمعية تؤول جميع أموالها وممتلكاتها بعد تصفيتها إلى أقرب جهة خيرية أو إنسانية داخل المملكة العربية السعودية لا تتعارض أهدافها مع أهداف الجمعية.
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 20 explained in plain English
This Article governs dissolution of the Consumer Protection Association and the fate of its funds.
First: grounds for dissolution. The Association may be dissolved in any of the following cases:
- If it has departed from its objectives.
- If it has committed a serious violation of the provisions of this Statute.
- If it has violated public order, public morals or prevailing traditions.
Dissolution here is discretionary: the occurrence of one of these grounds permits dissolution but does not automatically require it. This Article does not name the authority that decides dissolution or its procedures; it sets only the grounds and the fate of the funds.
Second: fate of the funds. If the Association is dissolved:
- Its funds and property are first liquidated.
- Then all of them pass to the nearest charitable or humanitarian body inside the Kingdom.
- Provided that body's objectives do not conflict with the Association's objectives.
It follows that the Association's funds are not distributed to its members on dissolution but remain dedicated to charitable or humanitarian purposes close to its objectives.
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 20 of the Saudi Consumer Protection Association Statute
When may the Consumer Protection Association be dissolved?
If it departs from its objectives, commits a serious violation of the provisions of the Statute, or violates public order, public morals or prevailing traditions.
Where do the Consumer Protection Association's funds go after dissolution?
After liquidation they pass to the nearest charitable or humanitarian body inside the Kingdom whose objectives do not conflict with the Association's objectives.
Are the Association's funds distributed to its members on dissolution?
No. The Article provides that all funds and property pass, after liquidation, to a charitable or humanitarian body.
More articles on Association Resources and Dissolution
- Article 11
The Article makes the General Assembly the Association's supreme authority and lists its competences, from general policies and electing two thirds of the Board to approving the budget and proposing dissolution.
الجمعية العمومية هي السلطة العليا للجمعية وتتولى الاختصاصات والمهمات الآتية: 1 - وضع السياسات العامة التي توجه سير عمل الجمعية. 2 - انتخاب ثلثي أعضاء المجلس وثل
- Article 18
The Article lists the Association's resources (government subsidies, publications, investment returns, subscriptions, donations and endowments) and requires its funds to be deposited in a bank in the Kingdom, withdrawable only on two signatures.
1 - تتكون موارد الجمعية من المصادر الآتية: أ ) الإعانات الحكومية. ب ) ريع المطبوعات والنشرات، وإيراد تنظيم الندوات والمعارض والدورات. ج ) عائدات استثمار ممتلكات
- Article 19
The Article sets the Association's financial year: it begins on the tenth day of the Capricorn (Jadi) sign each year and ends on the ninth day of it in the following year.
تبدأ السنة المالية للجمعية في اليوم العاشر من برج الجدي من كل عام، وتنتهي في اليوم التاسع منه من العام التالي.
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.