Article 9 of the Saudi Finance Companies Control Law
المادة 9 من نظام مراقبة شركات التمويل
The article provides that a finance company's license is considered ended if a liquidator is appointed for it or a judgment declaring its bankruptcy is issued.
Official text (Arabic)
This article has not been amended since the law was issued.
يعد الترخيص منتهيًا إذا عين مصفٍ لشركة التمويل، أو صدر حكم بإشهار إفلاسها.
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 9 explained in plain English
This article specifies two cases in which the license ends by operation of the Law:
- If a liquidator is appointed for the finance company, that is, the stage of liquidating its funds has begun.
- If a judgment declaring its bankruptcy is issued.
The phrase "the license is considered ended" means that the license ends as soon as either case occurs; the article does not mention a requirement for a cancellation decision by SAMA. It is preceded by Article 8, which prohibits dealing in founders' shares except with SAMA's approval.
The logic is clear: a company that is being liquidated or has been adjudged bankrupt is no longer in a position to carry on finance activity. The article did not address what follows from the end of the license for existing finance contracts with customers, so no ruling on that can be drawn from it.
It is followed by Article 10, which sets out the types of finance activity SAMA licenses.
If you have a contract with a finance company that is undergoing liquidation or bankruptcy, it is advisable to consult a lawyer who specializes in banking and finance to learn your position.
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 9 of the Saudi Finance Companies Control Law
When does a finance company's license end?
The license is considered ended if a liquidator is appointed for the finance company or a judgment declaring its bankruptcy is issued.
Does the end of the license here require a decision by SAMA?
The article provides that the license is considered ended once either case occurs, without mentioning a decision by SAMA.
More articles on Licensing Finance Companies
- Article 4
The article prohibits carrying on finance activities, or using anything indicating them, without a license, and excepts a person who finances the goods or services of his own establishments to his customers, as the Regulations provide.
1- تحظر مزاولة أي من نشاطات التمويل المحددة في هذا النظام إلا بعد الحصول على ترخيص بذلك وفق أحكام هذا النظام، أو الأنظمة المرعية الأخرى. 2- يحظر على أي شخص غير
- Article 5
The article sets the conditions and procedure for licensing a finance company, including a decision on the application within 60 days, a license term of five years, and offering a percentage of its ownership to the public.
أولاً : يقدم المؤسسون لشركة التمويل - أو من يمثلهم - طلب الترخيص إلى المؤسسة، ويشترط لإصدار الترخيص ما يأتي: 1- تقديم الهيكلة الإدارية للشركة ، ونظم تشغيلها، وخ
- Article 6
The article requires a finance company to begin its activity within a year of the license and bars it from stopping for more than three consecutive months except with SAMA's approval.
يجب على شركة التمويل البدء في ممارسة نشاطها خلال مدة أقصاها سنة من تاريخ حصولها على الترخيص، ولا يجوز لها بعد ممارسة نشاطها التوقف مدة متصلة تزيد على (ثلاثة) أش
- Article 7
The article allows SAMA to cancel a finance company's license if it appears the company provided false information or omitted material information required for licensing.
يحق للمؤسسة إلغاء الترخيص إذا ظهر أن شركة التمويل زودت المؤسسة بمعلومات زائفة، أو أغفلت الإفصاح عن معلومات جوهرية كان يتعين عليها الإفصاح عنها لأغراض الترخيص وف
- Article 8
The article bars dealing in a finance company's founders' shares except with SAMA's approval, and requires whoever receives the shares to meet the founders' conditions in Article 5.
يحظر التصرف في أسهم التأسيس إلا بعد موافقة المؤسسة، ويشترط فيمن تنتقل إليه تلك الأسهم توافر المتطلبات والشروط الواردة في الفقرة (3) من البند (أولاً) من المادة (
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.