Article 25 of the Saudi Cooperative Societies Law
المادة 25 من نظام الجمعيات التعاونية · الباب الثاني: إدارة الجمعيات التعاونية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الحالات الآتية:
1 - تعديل اللائحة الأساسية للجمعية.
2 - التصرف في ممتلكاتها العقارية والاستثمارية.
3 - حل الجمعية، أو دمجها مع جمعية أخرى، أو تقسيمها إلى جمعيتين أو أكثر. ويشترط لصحة انعقاد اجتماع الجمعية العمومية غير العادي حضور أغلبية المساهمين، مع مراعاة ما ورد في الفقرة (6) من المادة (السابعة والثلاثين) من هذا النظام في حالة حل الجمعية.
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 25 explained in plain English
This article reserves the extraordinary meeting of the general assembly for fundamental decisions affecting the society's existence.
First: who can call it
- The board of directors.
- The auditor.
- At least one third of the members, at their request.
- The Ministry.
The members themselves, once they reach one third, can therefore request the meeting without waiting for the board.
Second: its cases
- Amending the basic regulations of the society.
- Disposing of its real estate and investment holdings.
- Dissolving the society, or merging it with another society, or dividing it into two or more societies.
Third: the quorum
For the extraordinary meeting to be valid, a majority of the contributing members must attend, which is a much higher quorum than for the ordinary meeting.
Fourth: the case of dissolution
In the case of dissolution the article refers to paragraph 6 of Article 37, which makes one of the cases for dissolving and liquidating the society by decision of the Minister that the general assembly decides to dissolve it by a majority of at least three quarters of the contributing members. A majority attending is therefore not enough for a decision to dissolve; it must be passed by a majority of three quarters of the contributing members.
This article is linked to Article 24, which sets out the ordinary powers of the general assembly, such as approving the balance sheet, distributing profits and electing the board, and to Article 26, which provides that the general assembly elects a chair from among its members.
Anyone who wants to call an extraordinary meeting, or to challenge a decision made at one, can consult a lawyer who specializes in commercial and corporate cases.
Practical example
A cooperative society in Riyadh owns an investment plot of land and has received an offer to buy it. Under this article, the land can be disposed of only at an extraordinary meeting of the general assembly, called by the board of directors, the auditor, the Ministry or at least one third of the members, and a majority of the contributing members must attend for it to be valid.
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 25 of the Saudi Cooperative Societies Law
When does a cooperative society hold an extraordinary meeting?
To consider amending the basic regulations, disposing of its real estate and investment holdings, or dissolving, merging or dividing it.
Do members have the right to request an extraordinary meeting?
Yes, at the request of at least one third of the members.
What is the quorum for the extraordinary meeting?
A majority of the contributing members must attend, and a decision to dissolve requires a majority of three quarters of the contributing members under paragraph 6 of Article 37.
Articles this article refers to
More articles on General Assembly of the Cooperative Society
- Article 22
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.
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%)
- 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 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.