Article 20 of the Saudi Cooperative Societies Law
المادة 20 من نظام الجمعيات التعاونية · الباب الثاني: إدارة الجمعيات التعاونية
The article requires the board of directors to submit the society's accounts at year end and present them to the auditor one month before the general assembly, and to make them and the reports available to members at the seat for at least two weeks.
Official text (Arabic)
This article has not been amended since the law was issued.
يُقدِّم مجلِس الإدارة في نهاية السنة المالية حِسابات الجمعية، وتشمل:
1 - الحِساب الختامي للسنة المالية المُنتهية.
2 - حساب الأرباح والخسائر .
ويُعرض هذان الحِسابان -مشفوعين بالمُستندات المُثبِتة لهُما -على مُراجِع الحِسابات لفحصِها قبل انعِقاد الجمعية العمومية بشهر على الأقل، ويبقى الحِساب الختامي وحِساب الأرباح والخسائر وتقارير مجلِس الإدارة والمُفتِّشين والمُراجعين في مقر الجمعية مُدة أسبوعين على الأقل قبل انعِقاد الجمعية العمومية، ويكون لكُلِ عضو حق الإطلاع عليها. وتظل كذلك إلى أنَّ يتم التصديق عليها.
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 20 explained in plain English
This article regulates the society's annual accounts cycle and gives members an important right of access.
First: what the board submits
The board of directors submits the society's accounts at the end of the financial year, which include:
- The final account for the financial year that has ended.
- The profit and loss account.
Second: presenting them to the auditor
The two accounts are presented, together with the supporting documents, to the auditor for examination at least one month before the general assembly meets.
Third: making them available to members
- The final account, the profit and loss account and the reports of the board of directors, the inspectors and the auditors remain at the society's seat.
- For at least two weeks before the general assembly meets.
- And every member has the right to inspect them.
- And they remain so until they are approved.
The purpose is for the member to attend the general assembly meeting knowing the society's financial position, so that he discusses and votes with knowledge.
This article is linked to Article 19, which lets the Minister issue decisions regulating the audit process subject to the laws on accountants, and to Article 21, which requires the board of directors to appoint an executive manager to conduct the society's affairs, with the board answerable for his work to the general assembly.
Anyone prevented from inspecting the accounts can consult a lawyer who specializes in commercial and corporate cases.
Practical example
Aisha, a member of a consumer cooperative society in Jeddah, learned when the general assembly would meet. Under this article, at least two weeks before the meeting she is entitled to go to the society's seat and inspect the final account, the profit and loss account, and the reports of the board of directors, the inspectors and the auditors.
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 20 of the Saudi Cooperative Societies Law
Does a member of a cooperative society have the right to inspect its accounts?
Yes. Every member has the right to inspect the final account, the profit and loss account and the reports at the society's seat, and they remain available for at least two weeks before the general assembly meets and until they are approved.
When are the society's accounts presented to the auditor?
At least one month before the general assembly meets, together with the supporting documents.
What accounts does the board of directors submit each year?
The final account for the financial year that has ended, and the profit and loss account.
More articles on Cooperative Society Accounts and Audit
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.