Fines and imprisonment for violators of Saudi bankruptcy laws

Fines and imprisonment for violators of Saudi bankruptcy laws
Updated 28 November 2017

Fines and imprisonment for violators of Saudi bankruptcy laws

Fines and imprisonment for violators of Saudi bankruptcy laws

RIYADH: The Shoura Council is set discuss on Wednesday a draft bankruptcy law prepared by the Ministry of Commerce and Investment.

The draft law, which includes 231 articles, stipulates that anyone who breaks the law or abuses its measures will be punished by imprisonment for a term not exceeding five years and a fine not exceeding SR5 million ($1.3 million) or one of these penalties.

The law also gives the court the right to add other penalties to the violator, including the prohibition of running any profitable establishment, the direct or indirect management of its business, in addition to the sale of violator’s share in the ownership of the enterprise or other rights.

The draft law warns against the return of committing the violation, stressing that the penalties prescribed will be doubled as stipulated in the law.

The draft law defined a person who returns in committing the violation as anyone who committed an offense in which he was sentenced by a final verdict within three years from the date of completion of the sentence.