Question: Is there a legal restriction for transfer of shares to any third party in a trading and contracting company? What procedure one should follow in this regard? I have 20% shares in a company and I wanted to transfer them to a third party. Is there a specific procedure? Can a Qatari share be reduced to 25% in a company? Please advise.
GT, Doha
Answer: A share transfer must be executed at the Ministry of Justice after receiving appropriate approvals from the Commercial Companies Department, Department of Labour (to establish that there are no outstanding employment claims) and Ministry of Finance (to establish that there is no outstanding tax). The shares cannot be transferred if that would result in a Qatari holding less than 51% of the share capital. 
According to Article 238 of the Commercial Companies Law, unless it is otherwise stipulated in the Articles of Association, if any of the shareholders wanted to transfer his share to someone other than the shareholders, he should notify the other shareholders of the transfer conditions through the company’s director. The director should notify the shareholders as soon as he receives the notification and every shareholder may opt to purchase at the same terms and conditions or decline.
If the right of purchase is opted by more than one shareholder, the sold share(s) shall be distributed among them in proportion to the shares of each in the capital. In case of disagreement on the price, the company’s auditor shall assess the price on the date of purchase. If thirty days passed since the date of notification and none of the partners used the right of purchase, the partner shall be free to dispose of his share.

Judge may order stay of execution
Q: There is a criminal case against my colleague and the judgment may be issued by the court soon. My friend does not have any other case. This is something which he did without any intention. The lawyer who attended the court said that there will be a punishment for him but there is a chance of cancelling it for certain time. I do not understand anything clearly. Could you please explain how the court cancel the punishment? Do we need to apply to the court? Please advise. 
DK, Doha
A: According to Article 79 of the penal laws, upon issuing a judgment of a fine or imprisonment for a period of no more than one year, a judge may order a stay of execution considering the accused’s conduct, past circumstances of offence or age if there is reason to believe that he shall not commit another offence. The judgment shall show the reason for the stay of execution. A judge shall make a stay of execution inclusive of any secondary punishment, except confiscation. The stay of execution shall be for a period of three years from the date on which the judgment becomes final.
However, a judgment may be passed for revoking a stay of execution if the convicted person commits during the period of probation a deliberate offence, he shall be sentenced to a penalty involving deprivation of liberty for more than three months, whether the conviction judgment has been passed during this period or thereafter, provided that the action has been brought during such period. 

Contract continues after landlord’s death
Q: We have rented a house and the contract is for three years. Now it’s one year and seven months and we used to pay the rent to the landlord, who is my colleague, directly at office. A few weeks ago he passed away and I don’t know any of his relatives. Does the death affect our contract or not? How can I pay the rent in such situation? Please advise.
AM, Doha
A: According to Article 16 of the Rent laws, the lease shall not be terminated by the death of one of the parties to the lease. As per the contract, you are legally entitled to continue at the leased premises till the end of the contract with the terms and conditions including the rent agreed. The rental agreement shall not get terminated on the death of the landlord. Regarding payment of rent, the tenant may pay the rent to the rental committee not later than seven days of the date agreed upon or of the month for which the rent is due. 

No provision for medical leave
Q: I have a 10-year-old kid who was admitted to a hospital in Doha due to some health issues. I am a working woman and had taken leave to attend my kid at the hospital. Is there any provision to avail medical leave under such situation?
SA, Doha
A: There is no provision in the Qatar Labour law for granting medical leave for working woman to attend her child at hospital. In such circumstance, the employee has to avail the general leave to take care of their dependents. According to Labour law, an employee is eligible for medical leave with pay after three months from the commencement of employment provided that the employee should provide certificate from the physician to prove the sickness. 
* Please send your questions by e-mail to: [email protected]

LEGAL SYSTEM IN QATAR

According to Article 162 of Civil and Commercial Procedure law, an appeal operates only in favour of or against the parties to it. Nevertheless, where the decision has been issued in an indivisible interest or a joint obligation or in respect of a lawsuit in which the law requires the litigation of certain persons, it shall be possible that the convicted ones, who failed to object within the time prescribed or accept the decision may object to the decision during the appeal submitted by any other party affected by the decision, within the prescribed time by joining the appellant in the claim. The court shall order the appellant to join the person who failed to file appeal as a party. Where the appeal is served upon one of the losing parties in time, the others shall be joined even though the time for appeal has expired. Both the guarantor and applicant of guarantee shall benefit from the appeal made by either of them in the decision issued in the original lawsuit if they have joined in the defence. If there is an appeal against either of them, it shall be permitted for the other party to join litigation therein. 
Unless the law provides otherwise, an appeal shall be submitted within thirty days. Unless the law stipulates otherwise, an appeal in urgent cases shall be submitted within twenty days. If a judgment is issued based on fraud made by a party or a counterfeit document or perjury or due to non-production of a conclusive document in the proceedings being kept by the party, the time for appeal shall only commence from the day on which the fraud was disclosed or from the day on which the person who committed perjury has admitted guilt or whose guilt has been proven upon a judgment or from on the day the person is adjudged to have committed perjury, or from the day the paper that was kept has been produced. 
As per Article 167, an appeal shall take place upon filing the appeal at the office of the Registry of the appeal court in accordance with the applicable provisions pertaining to the filing of an appeal. The appeal shall include a statement on the appealed judgment, its date, grounds of appeal and remedies sought, otherwise it shall be void. 
The office of the Registry that received the appeal shall register the appeal in the court register on the day it is delivered on or on the day after attaching the preliminary file of the original proceedings. The office of the Registry of the court that issued the judgment shall send the file within a maximum of 10 days from the date of request thereof. The court at which the appeal is filed shall order any person who fails to attach the file or send it on the specified date to pay a fine not exceeding QR200 in a judgment that shall not be subject to appeal. 
According to Article 170, the Court of Appeal shall hear the grounds relating to evidence and defences, or new defences presented and the evidence that was submitted to the Courts of First Instance. If the judgment issued on the original application is repealed, the Court of Appeal shall return the case to the Courts of First Instance to rule on the provisional remedies. No new applications shall be permissible in the appeal. The court, own its accord, shall decide not to accept new applications.
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