Article 36 of the Saudi Cooperative Societies Law

This article regulates government oversight of cooperative societies, in three paragraphs:

Paragraph 1: scope of oversight

The societies are subject to oversight by the Ministry, which includes:

• Examining the society's work.
• Checking its conformity with the laws, the bylaws and general assembly decisions.
• Monitoring the society's accounts through auditors.

Paragraph 2: suspending general assembly decisions

The Minister has the right to suspend execution of general assembly decisions if they violate the laws or the society's bylaws. General assembly decisions themselves are therefore subject to this oversight. The text speaks of "suspending execution" and does not set out its procedures or the ways of objecting to it.

Paragraph 3: acting on behalf of the general assembly in collecting dues

The Ministry has the right to act on behalf of the general assembly in collecting its dues. The article does not detail the cases in which the Ministry exercises this role.

The Ministry and the Minister, under Article 1, are the Ministry of Social Affairs and its Minister.

This oversight is the counterpart of the facilities that Article 35 allows to be granted to the cooperative sector, such as grants of land and easier lending. It is also linked to Article 37, which gives the Minister the right to dissolve a society and liquidate it in cases including its departing from its objectives, or its being impossible to continue because its business is persistently disrupted or it repeatedly breaches the provisions of the Law, its regulations and the society's bylaws; oversight may uncover what leads to that.

Anyone facing a decision to suspend a decision of his society may consult a lawyer specializing in administrative cases.