Article 12 of the Saudi Cooperative Societies Law
المادة 12 من نظام الجمعيات التعاونية · الباب الأول: أحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تقوم الوزارة بمُراجعة المُستندات الواردة في المادة (الحادية عشرة) من هذا النظام ، فإذا كانت مستوفية لمتطلبات هذا النِظام قامت بإتمام إجراءات الإشهار، وإلا فلها أنَّ ترفُض التسجيل أو تطلُّب تعديل اللائحة الأساسية ، وعليها أنَّ تُخطِر المؤسِّسين بالرفض وأسبابه أو بطلب التعديل خِلال ستين يوماً من تاريخ ورود طلب الإشهار إليها، وإلا عد الإشهار واقِعاً بحُكم النِظام. وللمؤسسين حق الطعن في قرار الرفض أمام الوزير خِلال ستين يوماً من تاريخ إبلاغهم بذلك . وفي حالة الموافقة على الإشهار تزاول الجمعية نشاطها ، وتتمتع بالامتيازات الممنوحة للجمعيات بموجب هذا النِظام.
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 12 explained in plain English
This article explains what happens after the registration application is submitted with the documents listed in Article 11, such as the feasibility study, the founding contract, the basic regulations and the receipt for depositing the share value.
First: review and decision
- The Ministry reviews the documents.
- If they are complete as the Law requires, the announcement procedures are completed.
- Otherwise it may refuse registration or request amendment of the basic regulations.
Second: notification period and deemed announcement
The Ministry must notify the founders of the refusal and its reasons or of the request for amendment within 60 days of the date the announcement application reaches it. If it does not, the announcement is deemed to have taken place by operation of the Law. This is an important provision that protects the founders from having their application left pending.
Third: appealing a refusal
The founders have the right to appeal the refusal decision to the Minister within 60 days of the date they are informed of it.
Fourth: the effect of approval
On approval of the announcement, the society begins its activity and enjoys the privileges granted to societies under the Law.
Article 13 follows to regulate the board of directors, which is made up of at least five members elected by the general assembly, with the founders appointing the first board from among themselves for three years.
Anyone whose society's registration application has been refused and who wants to appeal can consult a lawyer who specializes in administrative cases so as to observe the period.
Practical example
The founders of a cooperative society in Najran submitted a complete registration application, and 60 days passed from the announcement application reaching the Ministry without it notifying them of a refusal or a request for amendment. Under this article, the announcement is deemed to have taken place by operation of the Law. If it had notified them of a refusal, they could appeal to the Minister within 60 days of being informed.
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 12 of the Saudi Cooperative Societies Law
How long does the Ministry have to respond to a cooperative society registration application?
It must notify the founders of the refusal and its reasons, or of a request for amendment, within 60 days of the date the announcement application reaches it.
What happens if the Ministry does not respond within the period?
The announcement is deemed to have taken place by operation of the Law.
How do I challenge a refusal to register a cooperative society?
The founders may appeal the refusal decision to the Minister within 60 days of the date they are informed of it.
Articles this article refers to
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 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
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.