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Legal Training for Bankruptcy Practitioners

Legal training for bankruptcy practitioners is one of the foundation phase programs for training bankruptcy practitioners, particularly officeholders and experts. The program is part of the professional training plan implemented by the Bankruptcy Commission under its jurisdiction, provided for in the Bankruptcy Law, issued by Royal Decree No. (M/50), dated 28/5/1439 A.H. 

The training material presented during the program is one of the sources recommended by the Bankruptcy Commission to achieve the program's objectives, as well as other frequently used resources. It should be noted that the Bankruptcy Commission is working to update the exam structure and sources when needed.​

The Overall Objective of the Program:

To provide the trainee with a set of fundamental knowledge, skills and behaviors that enables him to work in the Bankruptcy Law implementation field.

Program Objectives:​

The program aims to help the trainee -after finishing the program- achieve the following objectives :

  1. Understand the basic concepts of rights and liabilities .
  2. Understand the basic concepts of litigation and methods of proof.
  3. Understand the judicial system in Saudi Arabia, its agencies and jurisdictions.
  4. Understand the scope of the Bankruptcy Law, its objectives and its special characteristics.
  5. Understand the roles of the relevant parties in implementing the Bankruptcy Law.
  6. Understand the bankruptcy procedures, their objectives, their provisions and the implications of each.
  7. Understand the Code of Professional Conduct for Officeholders and Experts and the learn to apply them.

Program Themes:

The program consists of six themes according to the following details:

The First Theme: Basic Concepts of Rights and Liabilities (15%)

Working on bankruptcy cases involves treating debts from various sources, looking into miscellaneous claims, reviewing contracts learn how to deal with them, terminate them or apply for termination. This requires a brief understanding of the basic concepts of rights and liabilities. Therefore, this theme gives a preliminary glimpse of types of rights, sources of liability, its description, effects and termination.

This theme seeks to help the trainee achieve the following objectives:

  1. Understand the public assets of rights and liabilities.
  2. Know the types of rights and the sources of liability.
  3. Know the description, effects and the termination of the liability.
  4. Know the aspects of rights and liabilities in bankruptcy procedures.

The Second Theme: The Basic Concepts of Litigation and Methods of Proof (15%)

Bankruptcy procedures are not adversarial in their traditional sense, but in some respects, they may involve an adversarial nature that ends with a constitutive or declaratory judgment. Therefore, this theme reviews the concepts of litigation, methods of proof and link it to bankruptcy procedures.

This theme seeks to help the trainee achieve the following objectives:

  1. Know the basic principles of litigation and understand its practical effects (freedom to resort to the law, judicial confrontation, right of defense, equality between opponents, openness, speed, effectiveness, status and interest litigation).
  2. Understand methods of proof (burden of proof, writing, testimony, interrogation, examination, oath, evidence, experience, and res judicata).
  3. The ability to link between concepts of litigation, methods of proof and bankruptcy procedures.

The Third Theme: Judicial System in Saudi Arabia (10%)

The judiciary supervises the implementation of bankruptcy procedures and the practitioner in this field needs to know the Saudi courts, their types and competences. Therefore, this theme provides a comprehensive view of judicial system in the Kingdom.

This theme seeks to help the trainee achieve the following objectives:

  1. Know the types of courts in Saudi Arabia.
  2. Know the provincial, temporal, territorial and substantive jurisdiction and understand the impact of this on bankruptcy procedures.
  3. Know the privacy of bankruptcy court compared to other courts and the impact this has on the management of bankruptcy procedures.

The Fourth Theme: Bankruptcy Law and Related Laws (20%)

The new Bankruptcy Law adopted modern international applications of bankruptcy practices, which in turn clarifies these concepts and principles that are related to the implementation of the Law, as well as relate that to other laws. This theme provides an overview of the objectives regulating Bankruptcy Law's rules, regulations, features and characteristics. It highlights the scope of the application of the Law and the roles of entities entrusted under the Law with specific tasks like managing the procedures and relate that to other regulations that the Law needs like procedural, corporate Law and others.

This theme seeks to help the trainee achieve the following objectives:

  1. Understand Bankruptcy Law's characteristics and the scope of applicability of the Bankruptcy Law towards a natural person or a corporate person.
  2. Understand Bankruptcy Law's relevance to other related Laws, regulations, and rules.
  3. Understand the roles of related parties in the implementation of the Bankruptcy Law.

The Fifth Theme: Bankruptcy Procedures (30%)

This theme introduces the main bankruptcy procedures which are: Protective settlement procedure, financial restructuring procedure and liquidation procedure, as well as sub procedures such as small debtors' procedures and administrative liquidation procedure and explain the features and situations of each procedure. As well as conditions that must be provided to commence any of the procedures, the related provisions, and their implications.

This theme seeks to help the trainee achieve the following objectives:

  1. Understand the bankruptcy procedures that are stipulated under the Law, and the purpose of regulating them as well as know about the returns they generally bring to the investment environment and the characteristics.
  2. The ability to choose the appropriate bankruptcy procedure based on an analysis of the investment company's status, and the impact of the economy on the company as well as identify the company's needs.
  3. Know the conditions that must be provided to commence any bankruptcy procedure.
  4. Understand the concepts, the steps of bankruptcy procedure and related provisions (Suspend moratorium, appointing officeholder, appointing expert, notifying and announcing, list of claims, proposal and plan, plan execution, asset inventory, selling assets, contract termination, distribution to creditors, termination of procedure ...).
  5. The ability to activate the powers vested in the officeholder and the expert to manage the procedure and refer back to the court only on matters that demands it.

The Sixth Theme: Professional Behavior (10%)

In order for the implementation of the Bankruptcy Law and its procedures to be successful, the values of professional conduct need to be applied, which means that the practices have to be objective, transparent, confidential, with professional competence and due diligence.

This theme seeks to help the trainee achieve the following objectives:

  1. Understand the behavioral values of officeholder and experts.
  2. The ability to apply the code of professional conduct for officeholders and experts in practical situations.
  3. The ability to differentiate between pre-appointment situations and post-appointment situation as well as avoid breaching behavioral values.

The Program Targets:

  1. Those interested in obtaining a bankruptcy officeholder license.
  2. Those interested in obtaining an expert license.
  3. Practicing professionals whose work is related to the bankruptcy field.​

Exam Structure

ThemePercentage
First: Basic Concepts of Rights and Liabilities 
(10%)
Second: The Basic Concepts of Litigation and Methods of Proof(10%)
Third: Judicial System in Saudi Arabia(10%)
Fourth: Bankruptcy Law and Related Laws(20%)
Fifth: Bankruptcy Procedures(30%)
Sixth: Professional Behavior(20%)
Total(100%)

Program certificate

Attendance Certificate: The trainee is granted an attendance certificate, on the condition that the trainee does not miss (75%) of the course.

Pass Certificate: The trainee is granted a pass certificate on the condition that the trainee attends and achieves a (60%) grade on the exam. Passing the program is one of the requirements to obtain an officeholder's or expert's license.

Program Duration: 4 training days 8 hours a day.