Article 11 of the Saudi Cooperative Societies Law
المادة 11 من نظام الجمعيات التعاونية · الباب الأول: أحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
على مؤسِّسي الجمعية التقدُّم للوزارة بطلب تسجيل الجمعية، على أنَّ يُرفق بِه المُستندات الآتية:
1 - دراسة جدوى تأسيس الجمعية .
2 - محضر اجتِماع المؤسِّسين.
3 - نُسختان من كُلٍ مِن: عقد التأسيس، واللائحة الأساسية للجمعية، موقعة من المؤسِّسين ، ويُصدِق على التواقيع مسؤول الوزارة الذي تقع الجمعية في منطِقة عملِه.
4 - كشف بأسماء المؤسسين ومهنهم ومحال إقامتهم ، وعدَّد وقيمة الأسهُم التي تم الاكتتاب بها من قبل كل منهم ، مصحوب بصور لبطاقات الهوية الوطنية .
5 - إيصال بإيداع قيمة أسهم المؤسسين بأحد البنوك.
6 - مشروع البرنامج السنوي لنشاط الجمعية.
7 - إقرار موقع عليه من جميع الأعضاء المؤسسين يبين أعضاء اللجنة المؤقتة التي ستتولى متابعة تأسيس 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 11 explained in plain English
This article sets the registration application file that the founders of the society submit to the Ministry. The following documents must be attached to the application:
- A feasibility study for establishing the society.
- The minutes of the founders' meeting.
- Two copies of each of the founding contract and the basic regulations, signed by the founders, with the signatures certified by the Ministry official in whose area of work the society falls.
- A list of the founders' names, occupations and places of residence, and the number and value of shares each has subscribed for, accompanied by copies of national identity cards.
- A receipt for depositing the value of the founders' shares at a bank.
- A draft annual program for the society's activity.
- A declaration signed by all the founding members stating the members of the temporary committee that will follow up on establishing the society.
Note that the article requires the value of the founders' shares to actually be deposited at a bank before the application, the signatures to be certified by the Ministry official competent for the area, and a temporary committee to be named to follow up the establishment.
The basic regulations required are those whose content Article 10 sets, including the society's name, seat and purposes, the capital and the maximum shares for a member, the conditions of membership, and the provisions on the board of directors and the general assembly.
Article 12 follows to explain what the Ministry does with these documents: it reviews them and, if they are complete, completes the announcement procedures; otherwise it may refuse registration or request amendment of the basic regulations, notifying the founders within sixty days, failing which the announcement is deemed to have taken place by operation of the Law.
Anyone preparing a society's registration file can use a lawyer who specializes in commercial and corporate cases.
Practical example
The founders of an agricultural cooperative society in Tabuk finished preparing the founding contract and basic regulations. Before applying to the Ministry for registration, under this article they must deposit the value of their shares at a bank, have their signatures certified by the Ministry official in their area, and attach the feasibility study, the meeting minutes, the founders' list, the draft annual program and a declaration naming the temporary committee members.
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 11 of the Saudi Cooperative Societies Law
What documents are required to register a cooperative society?
A feasibility study, the founders' meeting minutes, two signed and certified copies of the founding contract and basic regulations, a list of the founders and their shares with copies of identity cards, a receipt for depositing the share value at a bank, a draft annual program, and a declaration naming the temporary committee members.
Who submits the application to register a cooperative society?
The society's founders submit it to the Ministry.
Must the share value be deposited before registration?
Yes, a receipt for depositing the value of the founders' shares at a bank must be attached.
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 10
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.
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 أ
- 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.