Dissolving a limited liability company
March 16 2019 12:55 AM
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By Dr Nizar Kochery /Doha

Question: Our company is in huge loss and almost all our capital is lost. We are unable to invest further. Out of the four partners, two left the country and decided not to come back. Can we leave the company as it is? We owe money to creditors. Can we liquidate the company by the available partners? Please advise. 

HS, Doha

Answer: A limited liability company may be dissolved in accordance with its Articles of Association by way of a unanimous General Assembly Resolution approving the dissolution of the company and appointing a liquidator (the “Liquidator”) to execute the liquidation process. Article (298) of the Company Law stipulates that if the losses of a Limited Liability Company reached half the capital, the directors should, within 30 days since reaching this loss limit, raise to the general assembly the matter of capital recovery or dissolving the company. For issuing the decision of dissolving the company, the majority which is needed to amend the company’s contract is required. If the directors neglected calling the partners, or a decision could not be issued in this respect, the directors or partners, as the case may be, are considered to be jointly responsible for the company’s obligations resulting from their negligence.

Liability for defects
in leased property

Q: We have entered into a lease contract without having proper inspection on the property. The agent we appointed has confirmed that the property is in good condition. But later on, we noticed that there are many defects in the building which requires immediate maintenance. We requested the landlord for maintenance but he refused. In such a situation, can we terminate the lease contract and claim compensation from the landlord? Please advise. 

SV, Doha

A: According to Article 603 of the Civil laws, 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 defects or that he fraudulently concealed it. 

Approval needed for
part-time work

Q: I am working in a company since 2017 and now I got an offer for a part-time job. Being in this employment, can I engage in part-time jobs? Please advise. 

SN, Doha

A: As per Article 23 of the Entry, Exit and Residence Law, no natural or legal person shall permit any expatriates who were recruited by them for employment, to be employed by any other employer or employ any person not recruited by them. Notwithstanding the above, the competent authority may also authorise any expatriate to work on a part-time basis for another employer out of his working hours, provided that the recruiter agrees thereto in writing. The approval of the Ministry of Labour and Social Affairs shall be also required.  


Job change with
govt permission

Q: I am working in a contracting company since 2012. I signed a two-year contract at the time of joining and after that I have not signed any contracts. Given to understand that as per the present law, employees can transfer their jobs easily to another company. Is it possible for me to transfer my job without any issues? Do I need to obtain any kind of permission from the current employer? The chance of getting an approval from the employer is slim. Please advise. 

ZM, Doha

A: If the employment contract has not been renewed and the parties thereto continue to abide by it after expiry of its duration without an explicit agreement, the contract shall be renewed for unlimited duration with the same conditions. Now the employment contract has become an unlimited contract after the fixed period. As per the entry, exit and residence law, the employee can change the job with the permission of the government, either after the expiry of the contract or after five years of service with the employee. In such a case, there is no requirement of a no-objection certificate from the previous employer. 


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