JSK, Doha
ANSWER: According to Article 265 of the Civil Code, if the object of an obligation is not a sum of money, the parties may determine in advance the value of the compensation in the contract or in a subsequent agreement. Article 266 will prevail over any provision of the contract which purports to render liquidated damages payable irrespective of the actual loss. However, if parties have agreed an amount of compensation in advance of the occurrence of a loss, the courts may reduce the pre-agreed compensation if it is proven that the damages incurred are less than the pre-agreed amount of compensation. Any agreement to the contrary shall be null and void.
Repatriation expenses
Q: Our management has decided not to provide air tickets to employees who have resigned from employment. But I have read some articles which say that an employee is entitled for return ticket and other benefits. Is it mandatory to provide ticket in the case of employee who has resigned from employment?
KU, Doha
A: Upon termination of the employment contract, the employee is entitled for the repatriation expenses as per law irrespective of termination or resignation. As per Article 57 of labour law, the employer shall at its cost return the employee to the place of recruitment or to any place agreed upon between the parties on termination of employment contract. In the case of termination of a definite term contract before completion of the agreed term, the employee must bear the return expenses if the contract provides so. The employer shall complete the proceedings of returning the non-Qatari worker within a period not exceeding two weeks from the expiry date of the contract. Only when the worker joins another employer before his departure from the country, the obligation to return him to his country or other place shifts to the new employer.
Rental disputes
Q: I am working with a private company in Doha and staying near Hilal. My rental contract is valid up to December 2017. A few weeks ago, our landlord started asking us to vacate the premises without any reason or to increase the rent. Now he has filed a case to terminate the agreement through court to renovate the building. From the agent, we come to know that landlord has got new parties with higher rent. If the court orders us to vacate and landlord re-rented the premises to new party, can we initiate any action? If the landlord is not accepting the rent, how can the tenant pay it?
UI, Doha
Q: If the court orders the tenant to vacate the premises for the works, the Lessor should proceed with the licensed works within six months of the date on which the leased premises were vacated (Article 19 of the Rental laws). In the event if the Lessor does not undertake the licensed works, or lets the said premises to another tenant before undertaking such works, the Lessee may submit a claim for compensation if such is warranted.
The Landlord may rescind the rent contract, even before the expiry of the period if the tenant without any justifiable reason fails to pay rent within seven days from the due date. If the landlord refuses to accept the rent, the tenant may, within seven days of the date of such refusal, notify the landlord, by registered letter, that the rent is due to be received within seven days, and if the landlord does not accept such rent within the specified period, the tenant shall deposit the rent with the treasury of the Committee for Settlement of Rental Disputes, against no fees. This shall be considered as payment of the rent on the prescribed date. The deposit receipt shall be considered a document absolving the tenant from the value of the due rent to the extent of the amount deposited.
Different values
Q: If there is difference in the value of cheque amount in figures and words, which one will be considered? A cheque issued by one of our customer against our invoice has difference in the amount.
DF, Doha
A: As per Article 565 of the Trade law, when the amount payable by cheque is expressed in words and also in figures, and if different values are written in figures and words, the amount denoted by the words shall be the amount payable.
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LEGAL SYSTEM IN QATAR
According to Article 221, the Supervisory Council of Partnership Limited by Shares Company shall ensure the partnership completes the incorporation procedures in conformity with the provisions of law and shall also supervise the company business.
For the supervisory purpose, it may demand the directors to submit an account of their management, inspect the company books, documents and records and undertake an inventory of its assets.
The council shall opine on matters submitted by the directors and also grant the permission for transactions where the Article of Association stipulates prior permission for such transactions.
As per Article 222, if a significant default in the company management is discovered, the Supervisory Council may call for a General Assembly Meeting.
The council submits to the General Assembly at the end of every fiscal year a report on its supervision activities.
The members of the council shall not liable for the defaults of the directors or the consequences thereof, unless members of the council were aware of mistakes and failed to notify the General Assembly of these instances.
Partnership Limited by Shares shall be managed by one or more joint partners, whose authorities, responsibilities and dismissal are governed by the same provisions applicable to the Joint-Liability Company.
The Extraordinary General Assembly has no right to decide any amendments to the Articles of Association without the approval of all joint partners, unless the Articles of Association stipulated otherwise.
In the event of vacancy in the post of the director of the Partnership Limited by Shares, the Supervisory Council should appoint an interim director who will attend to urgent administrative affairs until the General Meeting convenes.
The interim director shall call for a General Assembly meeting within fifteen days of his appointment in conformity with the procedures determined in the Articles of Association, failing which the supervisory board shall extend the invitation without delay.
The interim director shall only be responsible for implementation of works assigned thereto.
According to Article 228, the Limited Liability Company is a company whose partners may be one or two and not more than fifty.
The liability of each partner shall be limited to his shares in the company and the shares in the limited liability company shall not be freely transferable.
A limited liability company shall have a name derived from its objectives or from the name of one or more partners, and may in either case include a derived name, provided the name shall not be misleading with reference to its objective or identity.
The words “Limited Liability Company” should be added to the name of the company.
If the directors fail to comply with this provision, they shall be jointly liable to the extent of their personal assets towards the company obligations in addition to indemnity.
As per Article 230, the objects of a Limited Liability Company may not be carrying out of banking, insurance or investment of money for third parties, whether as a principal or agent.
According to Article 231, the Limited Liability Company is established on the basis of Articles of Association signed by all the partners which includes such information as determined by virtue of the Minister’s resolution.
The Articles of Association shall also include special provisions to regulate the purchase of shares by existing partners from a retiring partner and the method of valuation of such shares, and voluntary reserve as well as provisions relating to company finance and accounts, and the grounds for winding up the company.
