Article 10 of the Saudi Cooperative Societies Law
المادة 10 من نظام الجمعيات التعاونية · الباب الأول: أحكام عامة
The article requires every cooperative society to have basic regulations that include in particular the society's particulars, capital, membership conditions, board of directors, general assembly, profits and dissolution.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون لكُلِ جمعية لائحة أساسية تعد وفقا لأحكام هذا النظام متضمنة -على الأخص - ما يأتي:
1 - اسم الجمعية، ومنطِقة عملِها ، ومقرها والغرض أو الأغراض التي أنشئت من أجلها .
2 - مقدار رأس مال الجمعية ، وقيمة الأسهُم ، وكيفية دفعِها، والحد الأعلى للأسهم التي يجوز للعضو امتلاكها .
3 - شروط العضوية ، وواجبات الأعضاء، وشروط فقد العضوية ، أو انسِحابِهم والآثار المترتبة عليها .
4 - شروط الترشيح لعضوية مجلس الإدارة ، وعدد أعضائه ،وطريقة إنتخابهم ، وإختصاصاته ، ومدته ، وأحوال وشروط انسحاب أعضائه وإنهاء عضويتهم .
5 - اختِصاصات الجمعية العمومية وقواعِد دعوتِها ومواعيد اجتِماعِها.
6 - السنة المالية للجمعية.
7 - السجلات الحِسابية والإدارية التي يجب أن تُمسِكُها الجمعية، وطريقة إعداد وتحضير الحِساب الختامي والميزانية العمومية ، والمُصادقة عليهما .
8 - قواعد قبول التبرعات ،والهبات ، والمنح ، والوصايا ، والأوقاف .
9 - قواعد توزيع الأرباح ، وتسوية الخسائر.
10 - قواعِد تعديل اللائحة الأساسية للجمعية.
11 - قواعِد إندماج الجمعية، أو حلها وتصفيتها .
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 10 explained in plain English
This article makes the basic regulations a required document for every cooperative society, prepared in accordance with the provisions of the Law and containing in particular the following:
- Identity: the society's name, area of work, seat, and the purpose or purposes for which it was established.
- Money: the amount of capital, the value of the shares and how they are paid, and the maximum number of shares a member may own.
- Membership: its conditions, the members' duties, and the conditions for loss of membership or withdrawal and their consequences.
- Board of directors: the conditions for nomination, the number of members, how they are elected, its powers and term, and the circumstances in which its members withdraw and their membership ends.
- General assembly: its powers, the rules for calling it, and the dates of its meetings.
- Financial and accounting matters: the financial year, the accounting and administrative records, and how the final account and the balance sheet are prepared and approved.
- Resources and profits: the rules for accepting donations, gifts, grants, bequests and endowments, and the rules for distributing profits and settling losses.
- Amendment and ending: the rules for amending the basic regulations, and the rules for merger or dissolution and liquidation.
The phrase «in particular» means this list is a minimum, so the regulations may contain other provisions as long as they accord with the provisions of the Law.
The basic regulations are the society's «internal constitution» and are a member's first reference for knowing his rights and duties. They differ from the founding contract, whose six particulars Article 9 sets. Article 11 requires two copies of the founding contract and the basic regulations, signed by the founders, to be attached to the registration application.
Anyone preparing basic regulations for a society can use a lawyer who specializes in commercial and corporate cases.
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 10 of the Saudi Cooperative Societies Law
What must the basic regulations of a cooperative society contain?
In particular: the society's particulars and purposes, capital and shares, membership conditions, the provisions on the board of directors and general assembly, the financial year, records and accounts, rules on donations and profit distribution, and rules for amendment, merger, dissolution and liquidation.
May other provisions be added to the basic regulations?
The phrase «in particular» indicates that the list is a minimum, provided the regulations are prepared in accordance with the provisions of the Law.
More articles on Establishing and Registering the Cooperative Society
- Article 3
The article requires a society to have at least twelve individuals and caps each member's holding at 10% of capital, with establishment by at least five members allowed exceptionally with a 20% cap.
تتكون الجمعية من أفراد لا يقل عدَّدُهم عن اثني عشر شخصاً، ولكُل عضو أنَّ يمتلِك عدَّدا من الأسهُم، بشرط ألا يزيد ما يمتلِكُه العضو الواحد عن (10%) من رأس مال ال
- Article 4
The article provides that a cooperative society acquires legal personality on completing registration, announcement and publication in two local newspapers, and may set up branches with a Ministry license under the Regulations' controls.
تكتسِب الجمعية الشخصية الاعتِبارية بمُجرد إتمام عمليتي التسجيل والإشهار المنصوص عليها في هذا النِظام، والنشر عن ذلك في صحيفتين محليتين. ويجوز للجمعية أن تنشئ له
- Article 8
The article identifies the society's founders and their task of preparing the preliminary founding contract and basic regulations, makes them jointly bear founding expenses, repaid from capital after registration, with no recourse if the society cannot be formed.
يُعد الأشخاص الذين يشترِكون في تكوين جمعية تعاونية مؤسَّسين لها، وهُم الذين يتولون إعداد عقد التأسيس الابتدائي، واللائحة الأساسية للجمعية. ويتحملون بالتضامُن ما
- Article 9
The article sets the particulars a cooperative society's founding contract must contain, such as date of drafting, founders' names, the society's name, seat, type, purposes, capital and nominal share value.
يجب أن يتضمن عقد تأسيس الجمعية ما يأتي: 1 - تاريخ ومكان تحريرِه. 2 - أسماء المؤسَّسين ومحال إقامتِهم ومهنِهم. 3 - اسم الجمعية. 4 - مقر الجمعية ومنطِقة عملِها. 5
- Article 11
The article requires a society's founders to apply to the Ministry for registration, attaching seven documents, including the feasibility study, the founding contract, the basic regulations and the receipt for depositing the share value.
على مؤسِّسي الجمعية التقدُّم للوزارة بطلب تسجيل الجمعية، على أنَّ يُرفق بِه المُستندات الآتية: 1 - دراسة جدوى تأسيس الجمعية . 2 - محضر اجتِماع المؤسِّسين. 3 - ن
- Article 12
The article governs the Ministry's review of registration documents and announcement or refusal within 60 days, failing which the announcement is deemed to have taken place, and gives the founders the right to appeal a refusal to the Minister within 60 days.
تقوم الوزارة بمُراجعة المُستندات الواردة في المادة (الحادية عشرة) من هذا النظام ، فإذا كانت مستوفية لمتطلبات هذا النِظام قامت بإتمام إجراءات الإشهار، وإلا فلها
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.