Article 7 of the Saudi Cooperative Societies Law
المادة 7 من نظام الجمعيات التعاونية · الباب الأول: أحكام عامة
The article provides that the door of membership in a cooperative society is open to those who meet the membership conditions, except in exceptional cases set by the Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
باب العضوية بالجمعية مفتوح لمن تنطبق عليهم شروط العضوية ، إلا في حالات استثنائية تحددها اللائحة .
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 7 explained in plain English
This article sets the «open door» principle in membership of cooperative societies, which is one of the features of cooperative work.
The rule: the door of membership in the society is open to those who meet the membership conditions. Whoever satisfies the conditions should in principle be admitted, and membership is not closed to him.
The exception: exceptional cases set by the Regulations. The article does not itself specify these cases but leaves them to the Implementing Regulations, and cases that do not appear in them should not be assumed.
Note that the article does not state the membership conditions themselves; it refers by implication to the established «membership conditions». Learning these conditions requires referring to whatever sets them, as this article does not state them.
Under Article 1, a member is the founding member of the society or one who joins it after its establishment, so this article concerns mainly those who join after establishment.
It is linked to Article 6, which limits the member's liability for the society's rights and obligations to the extent of the shares he owns, which matters to anyone considering joining. It is also linked to Article 8, which deals with the founders, who are those who take part in forming the society, prepare the preliminary founding contract and the basic regulations, and jointly bear the founding expenses.
Anyone whose membership application was refused despite meeting the conditions can consult a lawyer who specializes in commercial and corporate cases.
Practical example
Huda wants to join a women's crafts cooperative society in Al-Ahsa, and she meets the membership conditions. Under this article the door of membership is open to her as long as she satisfies the conditions, unless her case is one of the exceptional cases set by the Regulations.
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 7 of the Saudi Cooperative Societies Law
Can anyone join a cooperative society?
The door of membership is open to those who meet the membership conditions, except in exceptional cases set by the Regulations.
When may the door of membership in a cooperative society be closed?
Only in the exceptional cases set by the Regulations, by the article's text.
More articles on Cooperative Society Membership and Shares
- Article 3
The article requires a society to have at least twelve individuals and caps each member's holding at 10% of capital, with establishment by at least five members allowed exceptionally with a 20% cap.
تتكون الجمعية من أفراد لا يقل عدَّدُهم عن اثني عشر شخصاً، ولكُل عضو أنَّ يمتلِك عدَّدا من الأسهُم، بشرط ألا يزيد ما يمتلِكُه العضو الواحد عن (10%) من رأس مال ال
- Article 5
The article makes the share price fixed and indivisible and regulates a withdrawing member's assignment or redemption of shares, loss of membership and expulsion, and heirs taking a deceased member's place.
مع مراعاة ما ورد في المادة (الثالثة) من هذا النظام ، يكون سعر السهم ثابِتا، ولا تجوز تجزئتُه ، ويمكن للعضو المنسحب من الجمعية التنازل عن قيمة أسهمه لعضو في الجم
- Article 6
The article bars attaching a society's funds except to satisfy its debts under a court judgment, and limits a member's liability for the society's rights and obligations to the shares he owns.
لايجوز الحجز على أموال الجمعية إلا وفاء لديونها وبموجب حكم قضائي ، وتتحدد مسؤولية العضو في حقوق الجمعية وإلتزاماتها بقدر مايملكه من الأسهم .
- 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
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.