Article 17 of the Saudi Cooperative Societies Law
المادة 17 من نظام الجمعيات التعاونية · الباب الثاني: إدارة الجمعيات التعاونية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
لايكون انعقاد المجلس صحيحا إلا بحضور أغلبية أعضائه ، وتصدر قراراته بموافقة الأغلبية المطلقة لعدد الأعضاء الحاضرين ، فإذا تساوت الأصوات يرجح الجانب الذي صوت معه رئيس الاجتماع .
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 17 explained in plain English
This article sets the rules for the validity of meetings of the board of directors of the cooperative society and how it takes its decisions.
First: the quorum
The board's meeting is not valid unless a majority of its members attend. If the board has five members, for example, at least three must attend. The implication is that a meeting without a quorum is not valid.
Second: the majority needed for a decision
Decisions are made with the approval of an absolute majority of the members present, that is, more than half of those present, not more than half of all the members.
Third: a tie in votes
If the votes are tied, the side the chair of the meeting voted with prevails.
Note that the text speaks of the «chair of the meeting» and not the «chairman of the board», so the casting vote belongs to whoever actually chairs the meeting.
This article is linked to Article 16, which requires the board to elect from among its members at its first meeting a chairman, a vice-chairman, a board secretary and a treasurer. It is also linked to Article 18, which gives the board continuous supervision of the society's work and oversight of those who carry out management, and gives its chairman the right to sign for the society and represent it before others and the courts, with the right to delegate and appoint agents.
Anyone who doubts the validity of a decision issued by their society's board of directors can consult a lawyer who specializes in commercial and corporate cases.
Practical example
The board of directors of a cooperative society in Al-Jawf has seven members, and four of them attended a meeting to decide on buying equipment. The meeting is valid because a majority attended, and if two voted in favor and two against, the side the chair of the meeting voted with prevails.
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 17 of the Saudi Cooperative Societies Law
What is the quorum for a cooperative society board meeting?
The meeting is not valid unless a majority of the board's members attend.
How does a cooperative society's board make decisions?
With the approval of an absolute majority of the members present.
What happens in a tie in votes?
The side the chair of the meeting voted with prevails.
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 16
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.
ينتخب مجلِس الإدارة من بين أعضائه رئيساً ، ونائباً للرئيس ، وأميناً للمجلس ، وأميناً للصندوق في أول اجتماع له .
- 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.