المملكة: Urgent – No diligence for the liquidator… “Enforcement” approves strict controls to protect funds
Introducing the referral and filtering center «Enforcement” A guide to the work of the liquidator of joint funds through the “Estalaa” platform, with the aim of tightening liquidation, division and custody procedures, and ensuring the highest standards of efficiency and transparency, while strengthening the supervisory role of the Center over all liquidation works to guarantee the rights of all parties.
The guide confirmed that the liquidator is considered to be assigned by the Center to carry out his duties on his own behalf within the limits of assignment only, and is not considered a representative or agent of the Centre, and his actions do not entail any legal obligations towards Third parties are the responsibility of the Centre.
The guide prohibits the liquidator from exceeding his powers granted to him, obligating him to refrain from undertaking any ambiguous work until returning to the Centre, while stressing that all his work is subject to direct supervision, granting “Enforce” the right to accountability and impose regulatory penalties.
Protecting funds
With regard toProtecting funds, the guide prevents the liquidator from approving, reconciling, or relinquishing the joint money in any way, unless there is a legal power of attorney from all the partners, devoid of the presence of a minor or an endowment.
The system obliges the liquidator to place his hand on the assets immediately after accepting the assignment, holding him fully responsible for any delay, while obliging him to return to the center in cases for which there is no explicit regulatory text before taking any action.
The guide sets the correspondence mechanisms. The official statement stipulates the necessity of submitting detailed requests to the center, with its emphasis on archiving and documenting all documents and meetings, and making them available for control to ensure a complete documentation trail for the liquidation work and accurately inventory the assets and liabilities.
The regulatory articles required the liquidator to prepare security and administrative plans to guard and maintain the assets and prevent their value from decreasing, while obligating him to immediately report any cases of loss or theft, and granting him the authority to contract with specialized parties when necessary.
The liquidator is committed to collecting all revenues and proceeds from the assets. And deposit it in the approved bank account, with the necessity of preparing a comprehensive financial statement approved by a chartered accountant, taking into account the standards of the Saudi Authority for Auditors and Accountants in cases of liquidation.
The controls included forming cash allocations for fixed debts and a cash reserve of 10% of the balance of the estate with a maximum of one million riyals, in addition to collecting the partners’ debts by deducting them from their shares directly through the electronic system.
With regard to legal representation, the manual stipulated that it be The lawyer is licensed with no less than 5 years of experience for litigation, and 8 years for appeals, with the highest priority given to amicable solutions before resorting to the courts.
The guide also obliges the liquidator to pay taxes, wages, and maintenance costs via the electronic system before their due dates, while applying strict standards in confidentiality of information, protection of personal data, and adherence to approved cybersecurity controls.
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