Article 22 of the Saudi Cooperative Societies Law
المادة 22 من نظام الجمعيات التعاونية · الباب الثاني: إدارة الجمعيات التعاونية
The article makes the general assembly the supreme authority, requires it to meet at least yearly with a 25% quorum, then 10% after a fifteen-day postponement, and makes its decisions by majority of those present.
Official text (Arabic)
This article has not been amended since the law was issued.
الجمعية العمومية هي السلطة العليا في الجمعية التي تتكون من جميع الأعضاء المساهمين، ويجب أن تنعقد مرة على الأقل كل سنة ولا يكون الاجتماع نظاميًا إلا بحضور (25%) من الأعضاء، فإذا لم يكتمل النصاب يؤجل الاجتماع خمسة عشر يومًا، ويصبح الاجتماع نظاميًا بحضور (10%) من الأعضاء على الأقل، وتصدر القرارات بأغلبية أصوات الحاضرين، وفي حالة تساوي الأصوات يرجح الجانب الذي صوت معه الرئيس
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 22 explained in plain English
This article sets the standing of the general assembly and the rules of its meeting.
First: its standing and composition
The general assembly is the supreme authority in the society, made up of all the contributing members.
Second: frequency of meetings
It must meet at least once every year.
Third: the quorum
- The first meeting: it is not valid unless 25% of the members attend.
- If the quorum is not reached, the meeting is postponed for fifteen days.
- The postponed meeting: it becomes valid with the attendance of at least 10% of the members.
Fourth: decisions
- They are made by a majority of the votes of those present.
- In a tie, the side the chair voted with prevails.
The reduced quorum for the postponed meeting is meant to prevent the society's business from stalling if many members are absent.
This article is linked to Article 21, which makes the board answerable for the executive manager's work before the general assembly, which is the body before which the board is accountable. It is also linked to Article 23, which gives each member one vote in the general assembly however many shares he owns, and allows him to appoint another member who is not a board member as his proxy, with no member acting as proxy for more than one.
Anyone who doubts the validity of a general assembly meeting or decision can consult a lawyer who specializes in commercial and corporate cases.
Practical example
A cooperative society in Qatif has 400 members and called a general assembly meeting, but only 60 members attended, fewer than 25% (that is, 100 members). Under this article, the meeting is postponed for fifteen days, and the postponed meeting becomes valid with at least 40 members attending (10%).
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 22 of the Saudi Cooperative Societies Law
What is the quorum for a cooperative society's general assembly meeting?
25% of the members; if it is not reached, the meeting is postponed for fifteen days and becomes valid with at least 10% attending.
How often does the general assembly meet?
At least once every year.
How does the general assembly make decisions?
By a majority of the votes of those present, and in a tie the side the chair voted with prevails.
More articles on General Assembly of the Cooperative Society
- Article 23
The article gives each member one vote in the general assembly however many shares he owns, and lets him appoint another member who is not a board member as proxy, with no member acting for more than one.
لكل عضو صوت واحد في الجمعية العمومية مهما بلغت الأسهم التي يملكها، وللعضو أن يوكل عضوًا آخر في الجمعية من غير أعضاء مجلس الإدارة، ولا يجوز للعضو أن يكون وكيلاً
- Article 24
The article lists the general assembly's powers, including discussing the board's reports, approving the balance sheet, accounts and profit distribution, electing the board, appointing the auditor and deciding objections to board decisions.
تتولى الجمعية العمومية ممارسة الاختصاصات الآتية: 1 - مناقشة تقارير مجلس الإدارة وملاحظات الوزارة على الجمعية واتخاذ القرارات المناسبة بشأنها . 2 - اعتماد الميزا
- Article 25
The article governs the extraordinary meeting of the general assembly: who can call it, its cases such as amending the regulations, disposing of real estate, dissolution, merger and division, and its quorum of a majority of the contributing members.
تعقد الجمعية العمومية اجتماعا غير عادي بدعوة من مجلس الإدارة، أو من مراجع الحسابات، أو بطلب من ثلث أعضائها على الأقل، أو بدعوة من الوزارة، وذلك لبحث إحدى الحالا
- Article 26
The article provides that the general assembly elects its chair from among its members.
تنتخب الجمعية العمومية من بين أعضائها رئيسا لها.
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.