22/02/2011
Al-Jaafari urged on the need to update the procedures of bankruptcy and insolvency cases
Sheikh Al-Jaafari speaks about insolvency and bankruptcy insolvency at Asharqia Chamber
Request for a notice period for the insolvent
Sheikh Ahmed bin Abdullah Al-Jaafari President of Summary Court in Al-Qatif province who spoke of several legal issues as insolvency and bankruptcy last Sunday, February 20, 2011 and urged on the need of updating the procedures of bankruptcy and insolvency issues of the traders and to authenticate the insolvency of debtors.
This was during the symposium organized by the Chamber gathering all of lawyers, legal advisers and interested people in an attempt to highlight and discuss legal issues specially insolvency and bankruptcy.
Al-Jaafari throughout the discussion explained the meaning of insolvency in the Islamic concept and the Saudi regime also shows the difference between the terms of insolvency and bankruptcy.
Also addressed other topics of the most important the controls and terms applied by the officials in the issuance of the insolvency judgment as Articles (230-231) of the legitimacy system and its regulations as well as the mechanism of the seizure of the money of the accused person with insolvency and related procedures.
Also addressed other topics of the most important the controls and terms applied by the officials in the issuance of the insolvency judgment as Articles (230-231) of the legitimacy system and its regulations as well as the mechanism of the seizure of the money of the accused person with insolvency and related procedures.
Furthermore; Al-Jaafari said during the meeting, which saw a large presence that the procedures related to the insolvency proceedings and bankruptcy need to develop and be updated in line with the Kingdom growth and its place in the global economy, also called for bring out the insolvency requirements and regulations in the newspapers through the institutions providing credit services.
Pointing out that there are three types of bankruptcy ,the first is real banckrupt ,second is a nonpayer and the third is a fraudulent bankrupt .
Thus;Al-Jaafari emphasized on the importance of activating the role of committees set forth in the settlement of the protective system of bankruptcy and the importance of urgency in the issuance of the bankruptcy system.
Nevertheless; Al-Jaafari urged on the need to activate the system published in 1416 which shows (Protective settlement of bankruptcy),representing the phase that precedes the bankruptcy of companies seeking to pursuit a reconciliation between the company owners and creditors.
At the end of the symposium,Chief of Lawyers Committee Mr. Khalid Al-Saleh honored Sheikh Ahmed bin Abdullah Al-Jaafari, President of Summary Court in Al-Qatif.
