Opinion

Procedure for liquidation of a company

Procedure for liquidation of a company

April 28, 2018 | 12:32 AM
Legal
Question: We understand from external sources that one of our payment defaulters, a major international company based in Qatar for a project, is going to be in liquidation. How could we know about the liquidation? Is there any procedure for informing us? Please advise.SD, DohaAnswer: According to Article 312 of the Commercial Companies Law, the due dates in respect of all company debts shall expire with effect from the dissolution of the company. The liquidator shall, by registered letter, notify all creditors of the commencement of the liquidation, and shall invite them to submit their claims against the company. If creditors or their places of residence are not known, the notice shall be published in two local daily newspapers of which one shall be in the Arabic language, and on the company’s website, if any.In all cases, the notice to creditors for the submission of their claims shall include a period of grace for such creditors not less than 75 days from the date of such notice to submit their claims, provided the publication of the notice shall be repeated during such period after the expiry of one month thereof. Should some creditors fail to submit their claims, their debts shall be deposited with the court custodian, until the claims are received from their owners or the claims are time barred by extinctive limitation.Landlord not liable for any defectQ: We have leased a property in Doha for commercial purposes and arranged the building through an agent. We don’t have any contract with the agent. We have signed the lease agreement for five years and we occupied the space starting this month. We have now noticed some defects in the buildings and we requested for maintenance. The landlord refused to repair the defects stating that as per agreement they handed over building in good condition and legally they are not responsible. What does the law on lease say on this issue? Who is responsible? Please advise. US, DohaA: According to laws relating to tenancy, the landlord shall not be liable for any defect permissible by practice or any defect that was known to the tenant at the time of contracting or which the tenant could have detected if he had inspected the leased property with reasonable care, unless the tenant proves that the landlord has confirmed that the leased property is free of such defect or that he fraudulently concealed it. Thus, the landlord shall not be held responsible unless the landlord guarantee to the tenant that leased property is free from defects that may prevent the use of property.Alcohol party in a public placeQ: Is it legal for a person holding alcohol licence to arrange a small private party on a beach or public area for celebrating birthday? When we planned such a party, some people pointed that it was illegal to do so. What is the provision in the law with regard to alcohol consumption? Can it lead to any criminal charges? Please explain. JHZ, DohaA: According to Article 270 of the Qatar Penal Laws, anyone who is found drunk on a main street or anyone who disturbs others due to intoxication will be convicted to no more than six months and a fine of QR3,000 or to any one of these two penalties. The same penalty shall be imposed on anyone who drinks any alcoholic beverages in a public place.Imposing travel ban on debtorQ: The Qatar Civil Court has issued a judgment in favour of our company for recovery of money. According to the information received from reliable sources, the other party may leave the country immediately. Can we impose travel ban on him? Will it take time? Please advise.  SK, DohaA: As per Article 405 of Civil and Commercial Procedure law, a judgment creditor may approach the execution judge in order to stop travel of the authorised signatory of the judgment debtor, the company, and the court may issue orders banning travel. In such cases, there won’t be any hearing or opportunity to defend. The court may issue such orders upon the petition by a creditor that the creditor fears the escape of the debtor from litigation or smuggling his assets.
* Please send your questions to leges@qatar.net.qa
LEGAL SYSTEM IN QATAR
According to Article 279 of the Civil and Commercial Procedure law, if the witness has been properly summoned to appear before court and fails to do so, the court shall sentence him to a fine of QR200. This judgment shall be recorded in the minutes, and shall not be subject to appeal. In urgent cases, the court or the deputed judge may issue an order through the police for the witness to appear.However, in other cases, the witness shall be re-summoned to appear before the court, if so required, with all expenses of the said summons to be borne by the witness. If he fails to appear, he shall be sentenced to a fine of QR400. The court or deputed judge may issue an order to summon the witness to appear before the court. The court or deputed judge may exempt the witness from paying the fine if he appears before the court and offers an acceptable excuse. If the witness appears and abstains from taking an oath, or if he abstains from replying without legal justification, he shall be sentenced to a fine not exceeding QR1,000. In the event of the inability of the witness to speak, he shall testify in writing or by signing, if he is capable of making himself understood. Hearing of witnesses shall take place before the court in the presence of the litigants. If the witness has an excuse which prevents him from appearing and the court accepts this excuse, the court may travel to hear his evidence. However, if the court is constituted of more than one judge, it may depute one of its judges for this purpose. The litigants shall be invited to be present when this testimony is given. The court Registry shall make a minute of this testimony which shall be signed by the judge and the Registry of the court.As per Article 284, each witness shall give testimony individually, in the presence of the litigants and in the absence of other witnesses whose testimonies have not yet been heard. The court may require the litigants or one of them to leave the court while the witness is testifying in order to guarantee freedom. Questions to the witness shall be directed by the court. The witness shall first reply to the questions of the litigant who called him as a witness and then to the questions of the other litigant without interruption by parties to the statements of one another or statements of the witness in the course of the testimony. When the litigants have completed the questioning of the witness they may not ask him further questions except with permission from the court. The presiding judge or any of its members may put to the witness directly such questions as he deems useful in revealing the truth. According to Article 290, the court may refuse to direct any question by any of the litigants to the witness, if it deems that such question is incriminating or irrelevant to the subject matter, provided that the question is recorded in the minutes of the testimony.Written statements may not be resorted to except with permission from the court and where the nature of the proceedings so justifies. The reply of the witness shall be recorded in the minutes and then shall be read out to him and signed by him after any necessary corrections. If the witness abstains from signing, it shall be recorded with its reason in the minutes of the session.
April 28, 2018 | 12:32 AM