Article 24 of the Saudi Endowments Authority Law

This article is the rule against conflicts of interest at the Authority, and it sets out who is covered by the ban, what is banned, and the effect of violation.

Who is covered by the ban?

• Members of the Board.
• The Authority's staff.
• Their relatives up to the fourth degree.
• Everyone connected with managing the Authority's affairs.

What is banned?

1. Any of them having a direct or indirect interest in any project or agreement concluded with the Authority.
2. Dealing by sale, purchase or otherwise, for his own account or for another's, in the funds of endowments of which the Authority is supervisor or manager.

Effect of violation: any act that violates this article is void. The article does not merely ban; it makes the violating act void.

Notes: the ban also covers an indirect interest, such as an interest held through a company or an intermediary. It also covers dealing for another's account, so an employee may not act as agent for someone else in buying property of an endowment the Authority supervises. The effect the article states is voidness.

This article comes after Article 23, which binds the Authority to the endowers' conditions in all its dealings, and before Article 25, which deals with the law replacing a previous law and its taking effect. Anyone who is a party to a dealing that may fall under this ban would do best to consult a lawyer specializing in endowment cases before proceeding.