Article 41 of the Saudi Cooperative Societies Law
المادة 41 من نظام الجمعيات التعاونية · الباب التاسع: أحكام ختامية
The article provides that the relevant ministries exercise technical supervision over cooperative societies as to their activities.
Official text (Arabic)
This article has not been amended since the law was issued.
تتولى الوزارات ذات العلاقة الإشراف الفني على الجمعيات، وذلك فيما يخص نشاطاتها.
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 41 explained in plain English
This article distinguishes two kinds of supervision over cooperative societies:
- General supervision: this belongs to the ministry responsible for the Law, which under Article 1 is the Ministry of Social Affairs.
- Technical supervision: this is exercised by the relevant ministries, as to the activities of the societies.
In practice this means that a cooperative society works in a particular field, such as agriculture, fishing, housing or services, and each field has a government body responsible for it technically. The article gives that body technical supervision over the society within the limits of its activity.
Note that technical supervision is limited in scope: it is as to its activities only, and by this article it does not extend to the society's administrative or financial affairs. The article also does not name the relevant ministries or set out the forms and tools of technical supervision, so the body is determined according to each society's activity.
In the same context, Article 40 deals with the stage after liquidation, distributing the proceeds to members up to what they paid as the price of their shares plus the profits realized, with the remainder deposited toward a new cooperative society or transferred by the Minister to a society carrying on the same activity or the closest one to it.
Article 42 gives the Minister the power to issue the regulations and decisions needed to implement the Law.
Anyone who runs a society and needs to know the body responsible for technical supervision of its activity may consult a lawyer specializing in commercial and corporate cases.
Practical example
A cooperative society of livestock breeders in Al-Jawf works in animal production. Under this article, the ministry relevant to this activity exercises technical supervision over the society as to its activity, alongside the general supervision of the ministry responsible for the Cooperative Societies Law.
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 41 of the Saudi Cooperative Societies Law
Who provides technical supervision of cooperative societies?
The relevant ministries exercise technical supervision over the societies as to their activities.
Does technical supervision cover the society's financial affairs?
The article limits technical supervision to the societies' activities.
More articles on Definition of the Cooperative Society and General Provisions
- Article 1
The article defines the key terms in the Cooperative Societies Law, including the Ministry, the society, the general assembly, the board of directors, the member and the Regulations.
يقصد بالألفاظ والعبارات الآتية – أينما وردت في هذا النظام – المعاني المبينة أمام كل منها ما لم يقتض السياق خلاف ذلك. الوزارة : وزارة الشئون الاجتماعية. الوزير:
- Article 2
The article defines a cooperative society as one formed by individuals to improve its members' economic and social condition by following cooperative principles, and requires its name to indicate its cooperative character and the type of its work.
تعد جمعية تعاونية كُل جمعية يكوِّنها أفراد طِبقاً لأحكام هذا النِظام، بهدف تحسين الحالة الاقتصادية والاجتماعية لأعضائها ،سواء في نواحي الإنتاج، أم الاستِهلاك ،أ
- Article 42
The article authorizes the Minister to issue the Implementing Regulations and the decisions needed to implement the Cooperative Societies Law, with the Regulations to be issued within 90 days of the Law's issuance and to apply from the date the Law takes effect.
يصدر الوزير اللائحة والقرارات اللازمة لتنفيذ أحكام هذا النظام، على أن تصدر اللائحة في مدة أقصاها (تسعون) يومًا من تاريخ صدوره، ويعمل بها من تاريخ العمل بالنظام.
- Article 43
The article provides that this Law replaces the Cooperative Societies Law issued by Decree No. 26 of 1382 AH and the Regulation on Subsidies to Cooperative Societies issued by Council of Ministers Resolution No. 419 of 1398 AH.
يحل هذا النظام محل نظام الجمعيات التعاونية، الصادر بالمرسوم ذي الرقم 26 والتاريخ 25 / 6 / 1382 هـ، وكذا لائحة إعانة الجمعيات التعاونية، الصادرة بقرار مجلس الوزر
- Article 44
The article provides that the Cooperative Societies Law is published in the Official Gazette and takes effect 90 days after its publication.
ينشر هذا النظام في الجريدة الرسمية، ويعمل به بعد (تسعين) يومًا من تاريخ نشره.
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.