1- The terms and expressions contained herein shall have the meanings assigned thereto in Article (1) of the Bankruptcy Law issued by the Royal Decree No. (M/50) dated 28/05/1439 A.H, and Article (1) of the Implementing Regulations of the Bankruptcy Law, issued by virtue of the Council of Ministers' Resolution No. (622), dated 24/12/1439 A.H.
2- Fees, wherever mentioned in these rules, shall mean the financial compensation payable in consideration for the performance of the officeholder or expert, under the bankruptcy procedures, of any tasks stipulated herein.
These rules aim to:
1- Govern the estimate of officeholders and experts’ fees.
2- Enhance the trust in, and the transparency of, the bankruptcy procedures.
3- Prompt exerting more due diligence so as to enhance the quality of the performance.
The provisions hereof shall apply to the following:
1- Fees specified to listed officeholders in consideration for performing any of the following tasks:
a- Annotating on the proposal for the protective settlement procedure that the required information and documents are completed.
b- Preparing the reports stipulated under the Bankruptcy Law and the regulations related to the protective settlement procedure or the small debtors’ protective settlement procedure.
c- Acting as an officeholder in the financial restructuring procedure or small debtors’ financial restructuring procedure.
d- Acting as an officeholder in the liquidation procedure or in the small debtors’ liquidation procedure.
e- Acting as a temporary officeholder according to the provisions of Article (5) or Article (81) of the Implementing Regulations of the Bankruptcy Law.
2- Fees specified to listed experts in consideration for preparing relevant expert’s reports on bankruptcy procedures.
1- The fees of the appointed officeholder in a bankruptcy procedure shall cover all the works stipulated under the Bankruptcy Law, the regulations and rules related to the performance of the task, including the expenses of his firm, his work team, and similar regular expenses.
2- The officeholder’s fees are exclusive of the following:
a- The duties of the officeholder appointed in place of the debtor in the financial restructuring procedure, or the small debtors’ financial restructuring procedure when restraining the debtor.
b- The legal expenses of lawsuits filed for or against the debtor.
c- The expenses for the preparation of the debtor's financial statements.
3- The court may, on its own initiative, or upon a stakeholder’s request, decide to integrate any of the provisions under paragraph (2) of this Article into the officeholder’s fees.
When estimating the officeholder’s fees, the following shall be taken into account:
1- The number of creditors, total debts, and total assets value.
2- The type, degree of complexity and risks associated with the task.
3- The capabilities, qualifications, and experience of the officeholder or expert, and the qualifications of their work team.
4- The number of officeholders or experts assigned to a single task.
5- The existence of a substantial activity in the liquidation procedure, or the small debtors’ liquidation procedure, which requires increasing the administrative burdens for managing it to the extent necessary to complete the procedure.
Subject to the provisions of Article (5) herein, the court may - when applicable - decide to increase or decrease the estimated fees, in accordance with the provisions of Article (6) herein, provided that such increase or decrease shall not exceed (50%) of the estimated fees, along with giving the reasons for so deciding.