Article 16 of the Saudi Cooperative Societies Law
المادة 16 من نظام الجمعيات التعاونية · الباب الثاني: إدارة الجمعيات التعاونية
The article requires the board of directors of a cooperative society to elect from among its members, at its first meeting, a chairman, a vice-chairman, a board secretary and a treasurer.
Official text (Arabic)
This article has not been amended since the law was issued.
ينتخب مجلِس الإدارة من بين أعضائه رئيساً ، ونائباً للرئيس ، وأميناً للمجلس ، وأميناً للصندوق في أول اجتماع له .
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 16 explained in plain English
This article sets the leadership positions within the board of directors of the cooperative society and how they are filled.
The four positions:
- The chairman.
- The vice-chairman.
- The board secretary.
- The treasurer.
How they are filled: by election by the board of directors itself.
From whom? From among the board's members, so these positions may not be filled by people from outside it.
When? At the board's first meeting, so allocating these positions is one of the first things the board does after it is formed.
The article does not set out the powers of each position in detail, nor the method of election within the board; these may be dealt with in other articles or in the society's basic regulations.
This article is linked to Article 15, which deals with a vacant seat of a board member for any reason by adding the reserve member who obtained the most votes to complete the remaining term. It is also linked to Article 17, which requires a majority of the board's members to attend for its meeting to be valid, and makes its decisions by an absolute majority of those present, with the side the chair of the meeting voted with prevailing in a tie, which highlights the importance of the chairman's position.
The article is organizational, concerning internal operations, and gives no direct rights to anyone other than the board's 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 16 of the Saudi Cooperative Societies Law
Who elects the chairman of a cooperative society's board of directors?
The board of directors elects him from among its members at its first meeting.
Which positions does a cooperative society's board of directors elect?
A chairman, a vice-chairman, a board secretary and a treasurer.
More articles on Cooperative Society Board of Directors
- Article 13
The article requires every society to have a board of directors of at least five members elected by the general assembly to manage it within its purposes and regulations, with the founders appointing the first board for three years.
يكون لكُل جمعية مجلِس إدارة، يقوم بكافة الأعمال اللازِمة لإدارتها في حدود أغراضِها ولائحتِها، ويتكون مِن خمسة أعضاء على الأقل، تنتخِبُهم الجمعية العمومية من بين
- Article 14
The article sets the board of directors' term at four years, renewable, bars pay for its members, and allows the general assembly to grant a bonus of up to 10% of annual profits after the statutory deductions.
مُدة عضوية مجلِس الإدارة أربع سنوات، ويجوز للجمعية العمومية التجديد للمجلس لفترة أخرى أو أكثر ، ويستمر المجلس في ممارسة مهامه وصلاحياته إلى أن يتم تعيين المجلس
- Article 15
The article requires the board, when a member's seat falls vacant for any reason, to add the reserve member who obtained the most votes in the general assembly's ballot, to complete the board's remaining term.
إذا خلا مكان أحد أعضاء مجلِس الإدارة لأي سبَّب، فعلى المجلِس أنَّ يضُم العضو – من بين الأعضاء الاحتياطيين - الذي حاز على أكثر الأصوات في إقتراع الجمعية العمومية
- Article 17
The article requires a majority of the board's members to attend for its meeting to be valid, with decisions made by an absolute majority of those present and the side the chair of the meeting voted with prevailing in a tie.
لايكون انعقاد المجلس صحيحا إلا بحضور أغلبية أعضائه ، وتصدر قراراته بموافقة الأغلبية المطلقة لعدد الأعضاء الحاضرين ، فإذا تساوت الأصوات يرجح الجانب الذي صوت معه
- Article 18
The article gives the board continuous supervision of the society's work and oversight of those who manage it, and gives its chairman the right to sign for and represent the society before others and the courts, with the right to delegate and appoint agents.
1- يقوم مجلِس الإدارة بالإشراف على سير العمل بالجمعية بصِفة مُستمِرة، ومُراقبة من يقوم بالإدارة ، ومن يُمثِلون الجمعية والمُفوضين لأعمال مُعيِّنة . 2 - لرئيس مج
- Article 21
The article requires the board of directors to appoint an executive manager to conduct the society's affairs and to set his powers, duties and rights, and makes the board answerable for his work to the general assembly.
يعين مجلس الإدارة مديرًا تنفيذيًا يقوم بتصريف شؤون الجمعية، ويحدد المجلس اختصاصاته، وواجباته، وحقوقه، ويكون مجلس الإدارة مسؤولاً عن أعمال المدير في مواجهة الجمع
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.