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The Secretary-General of the Doha-based Arab Network of National Human Rights Institutions (ANNHRIs), Sultan bin Hassan al-Jamali, said that the siege and daily suffering endured by the Palestinian people, along with attempts to erase their identity and rights, place a collective responsibility on all parties to unify efforts, activate international legal mechanisms, and ensure accountability for all human rights violators without exception. Speaking during a ceremony organised by the ANNHRIs to honour Arab League Secretary-General Dr Ahmed Aboul Gheit at the League’s headquarters in Cairo, al-Jamali reaffirmed the network’s commitment to standing by the Palestinian people in their legitimate struggle, working to lift injustice against them, and defending their right to self-determination in a manner that restores the values of freedom and justice and reinforces regional and global peace and security. In this context, the ANNHRIs also organised in Cairo the sixth edition of the “Mohamed Fayek Course” on human rights, in co-operation with Egypt’s National Council for Human Rights. At the opening of the course, the secretary-general stated that national human rights institutions occupy a unique position within the international system, serving as a vital link between the state and civil society on one hand, and between the state and international mechanisms on the other. He added that these institutions play a central role in bridging the gap between international obligations and national practices, ensuring alignment of legislation with human rights standards, issuing recommendations, monitoring their implementation, and engaging constructively with international mechanisms. Al-Jamali noted that the network launched the Mohamed Fayek foundational course six years ago to deepen understanding of these roles, strengthen co-operation among stakeholders, and develop the skills of new members, contributing to the building of a coherent national human rights system and enhancing the capacity of institutions and defenders to influence public policy in line with international standards. For his part, Vice-President of Egypt’s National Council for Human Rights Mahmoud Karem said that naming the annual training course after Mohamed Fayek reflects recognition of him as a comprehensive intellectual school and a source of deep practical expertise that serves as a reference for new generations working in the field of human rights. He added that the course derives particular importance from being held amid a highly complex regional and international context marked by escalating armed conflicts, worsening violations, and deepening economic and social challenges, underscoring the urgent need to prepare young cadres equipped with deep awareness, scientific tools, and the capacity for analysis and responsible action in the field of human rights. 

Drafting of contracts require certain skills and special capabilities, as instances of inappropriate drafting, or weak or bad or ambiguous drafting are normally treated as a major legal risk. What you write by yourself could fire back on you with great losses and damages. Here comes the inherent importance of accurate drafting. Where a clause is duly incorporated into a contract and there are conflicts regarding the interpretation of such clauses, the Courts will normally examine the words used to see if the clause covers the breach and loss which has actually occurred. In such instances the main rules used by the Courts, include “strict interpretation” where, an exemption clause will be effective only if it expressly covers that kind of liability which has in fact happened. For example, a clause, for exclusion of liability for breach of warranty will not provide protection against liability for breach of condition. This is taking in consideration the differences between warranties and conditions in contracts. Also, if there is any ambiguity or doubt as to the meaning of an exemption clause, the Courts will construe it against the party who put in the contract. Therefore, very clear words must be used before a party will be held exempted from liability in negligence. This goes in line with the rule that, a contract is the will of the contracting parties which represents their intention at the time of contracting. However, such intention shall be put in clear words and perfect drafting. The Courts can strike out an “exemption clause” which is inconsistent with or repugnant to the main purpose of the contract. Also, the doctrine of “fundamental breach”, was developed in the fight against exclusion clauses which had been properly incorporated into contracts. According to the doctrine of ‘fundamental breach” no exemption clause, however clear and unambiguous could, as a matter of law, protect a party from liability for a serious or fundamental breach of a contract. In a famous case, the deft a security company agreed to provide security services to the plaintiff factory. One night the security man lit fire and the fire got out of control and damaged the factory. The deft, relied on an exclusion clause in their contract which stated that they would not be responsible “for any injurious act or default by an employee unless such act or default could have been foreseen and avoided by the exercise of due diligence by the deft. The Court held that the deft was protected by the exemption clause. Although a breach of contract with serious consequences had taken place, the exclusion clause as a matter of construction, was clear and unambiguous and it covered the “fundamental breach” that had taken place. Moreover, the Court said, in this case the parties had contracted as equals and were clearly in the best position to decide how to allocate the risk of the factory being damaged or destroyed. Herein, there is clear damage, however, going back the contract the liability is exempted. Beware and be careful, as sometimes, what you have agreed to could work against you. We strongly believe that, utmost care is needed in crafting and drafting free-risk contracts. It is your prime duty when drafting contracts, otherwise, you run the legal contractual risk. Not only bad drafting or ambiguous wordings or otherwise, nowadays, some people blindly sign ready-made contracts without reading them. Never ever do this for your own sake and legal protection. Being part of the contract, you have the absolute right to read, understand, amend and or to ask for amendments. Don’t give up this right at all. Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. Email: [email protected] 

His Excellency the Attorney General of Qatar, Dr Issa Saad al-Jafali al-Nuaimi, held separate meetings in Doha with senior legal officials from Iran and Kyrgyzstan. HE Dr al-Nuaimi met Tuesday with Iran’s Minister of Justice Dr Amin Hossein Rahimi, and with the Prosecutor General of the Kyrgyz Republic, Maksat Asanaliev.**media[394480]**The discussions focused on a range of issues of mutual interest, including ways to strengthen co-operation in the field of public prosecution and legal affairs. The meetings come as Qatar continues to expand judicial and legal co-operation with regional and international partners. 

With reference, to the basis for liability, there are numerous legal theories under which an accountant might be liable. However, the main basis of liability is the duty to exercise ordinary skill and care. Breach of this duty may lead to an action on tort under negligence. Closely related are also suits stemming from agency relationship between accountants and clients. Because this relationship is contractual in nature, breaching such duty might trigger an action in breach of contract.Moreover, many times the accountant involved in the action will be a partner in a public accountant firm. If so, the law of partnership will be involved, probably resulting in liability for all of the partners. If the accountant is an employee and not a partner, the firm may still be liable under the doctrine of respondent superior.The liability of the accountant can be both civil and criminal and when an accountant violates a duty, he may be called before a judicial body, an administrative professional body, or both.Accountants, generally have a duty to perform their contractual obligations. If an accountant agrees to complete an engagement by certain time and fails, there will be liability for whatever damages brought about.For example, suppose an accounting firm agrees to complete an audit by February 15 because it has been informed of a deadline set by a prospective lender to the client. If the audit report is not finished until March and the lender has no more funds available at that time, the accountant would be liable for the client’s resulting loss. The fact that the accounting firm had other deadlines would not be a defence.Ordinarily, an accountant may not delegate responsibilities without the consent of the client. This is because the contract is a personal one, based on the skill, training, and personality of the accountant.Even when there is no express agreement, the law imposes a duty of care on public accountants engaged to provide services to a client. The failure of an accountant to discover fraud by the client’s employees or others is not in itself proof of negligence by the accountant. The investigative techniques used by accountants will not always uncover the fraud of a skilful person. However, accountants cannot overlook questionable entries or omissions in the accounts and supporting records of the client.The individual circumstances will determine what action the accountant is required to take when he discovers irregularities.Certainly, it is necessary to notify a person in the management if an accountant has a basis for suspicion of fraud. Notifying a person thought to be a participant in the fraud would never be appropriate.The traditional defences of contributory negligence and comparative negligence may apply in negligence action against an accountant. However, courts hesitate to allow the client’s contributory negligence to excuse the accountant’s negligence because of the accountant’s superior skills.The intentional misrepresentation of material facts or the intentional failure to disclose such information to a client may result in the accountant being found liable for fraud. Such behaviour could be described as acting with the knowledge of an untruth or the reckless disregard for the truth. Suppose that an accountant represents that he completed an audit of the client when in reality he merely accepted the accuracy of the client’s books without investigation. The accountant may be liable in fraud for any losses suffered by the client from the time when the audit should have discovered the embezzlement.Generally, in a negligence or contract action, the client is limited to recovering compensatory damages. That is, the damage award is limited to the amount that will replace the actual loss caused by the accountant’s wrong. If the accountant is found liable in fraud, however, the client may be able to recover punitive damages as well. Under a punitive damage award, the client will receive an amount in excess of his actual loss. This award is designed to punish the accountant for his fraudulent conduct.Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. Email: [email protected] 

Legal PerspectiveMost of the company rules in English law are laid down by court’s precedents (Judge made law).We quote here, a very famous case (Salomon vs. Salomon), wherein it has been decided by the House of Lords to separate the entity of the person (owner) from his company.In other words, he is not personally responsible to meet the debts of or claims against the company. This is a remarkable principle and puts a cornerstone legal principle in corporate law and by such separation the law puts a “veil” on the responsibility as the company is regarded a “legal juristic person” responsible for its acts.This makes the difference between the “natural person” and the “juristic legal person”.Courts are in general precluded by Salomon case from treating a company as the agent, trustee or nominee of its owners. They will nevertheless do so if corporate personality is being used in instances of fraud or improper conduct. Generally, courts have found it essential to lift the veil for certain purposes owing to the fact that a company is only an “artificial” person, this particularly applies to the determination of its residence and to ascertain whether the acts of its agents have been effectively ratified. They have also generally sought to the application of the principle in Salomon by ignoring it in cases where the facts are sufficiently different.The corporate veil isolates and gives special protection to the personal assets of the corporate owner. However, such owners shall be aware that courts may decide otherwise in circumstances wherein the shield could be lifted by piercing the veil. Such instances include, inter alia, personally guaranteeing business loans or using personal property as collateral for business loans.Failure to keep business funds separate from personal funds (commingling assets). Not meeting other compliance obligations or conducting fraudulent activities under the business.Piercing the corporate veil (or “lifting” the veil) is when courts determine that personal liability protection does not apply.When the corporate veil is pierced, the individuals behind the business entity will be held personally accountable for debts or legal wrongdoing of the business. It is required to be vigilant to keep the corporate veil intact so as to keep yourself away from legal responsibility. The corporate business is governed by law and working within the law puts the corporate veil. 

Qatar took part in the 35th meeting of Their Excellencies GCC Ministers of Justice, held Thursday in Kuwait, reaffirming its commitment to strengthening legal and judicial cooperation among member states. His Excellency Minister of Justice and Minister of State for Cabinet Affairs, Ibrahim bin Ali Al Mohannadi, led the Qatari delegation. The ministers discussed key topics aimed at enhancing joint legal frameworks across the region. These included a draft unified policy to bolster collaboration among justice ministries, proposed unified regulations to combat discrimination, hate speech, and religious intolerance, as well as a unified framework for tackling cybercrimes in the GCC. The meeting also reviewed reports and outcomes from preparatory meetings, including the gathering of directors of legal and judicial training centers, and the committee of international cooperation officials in GCC justice ministries.

Legal PerspectiveDuties of an agent to the principal are normally derived from the contract and or the law of agency. While most agency relationships arise out of the contract, the agency contract, especially oral, may state little more than the general purpose of the agency. Ali being away, may ask Ahmed to sell his car. In such cases the duties of the agent owe to his principal must be found in the law.Certain duties exist in the law, even when the agency contract is silent. They include, inter alia, the duty of loyalty, duty to obey instructions, to exercise care and skill, to communicate info, duty of accountability. However, the most important duty is the fiduciary duty of loyalty.A fiduciary, is one who is trusted to act in the best interests of another rather than pursuing his own interests. While all of the other law duties can be reduced by the terms of the agency contract, the duty of loyalty cannot be eliminated.The duty of loyalty, is in need of complete honesty from agents in all dealings with principals. Further, the duty requires either avoidance of conflicts between the interests of the agent and those of the principal or full disclosure of any such conflict to the principal. If, after disclosure, the principal is willing to continue the relationship, the agent is shielded from liability for breach of the duty of loyalty.Such disclosure, should include notification of all compensation that the agent expects to receive in the course of fulfilling functions, because the agent is not permitted to make a secret profit. Anything of value that comes to the agent because of the agency relationship belongs to the principal. Thus if Ali, is a purchasing agent for Ahmed company and receives kickbacks or secret gifts from suppliers from whom he purchased goods for Ahmed company, the company is entitled to those gifts or whatever received.Agents breach their duty of loyalty by buying for the principal from themselves even if they charge a fair price. The duty of loyalty demands that the agent avoids even appearance of impropriety. Such purchases are permissible only when the agent has informed the principal, in advance of the potential conflict and discloses other pertinent facts. Same is true of sales to the agent. In all actions, full loyalty is a must.All such points shall be taken in consideration by both parties. We noticed that, many agency relationships continue to the point of close friendship or respectable relation, however, for different reasons this relation de tour and go to the contrary and the parties became enemies. So, carefulness is highly needed from the start, so as to escape bitter endless disputes rather than benefits to both parties.Dr AbdelGadir Warsama Ghalib is a legal counsel. Email: [email protected]

Legal PerspectiveThe main duties of banks include giving loans and facilities. This venture, brings profits to banks; nevertheless, it is full of risks.The associated risks are numerous, however, let’s take legal risks as example. This risk includes many issues as the choice of the applicable law, jurisdiction and others including documentation. The loan agreement could be a bomb in the hands of the bank. Therefore, attention is required while drafting docs with the intention of giving full security to the bank.To give security, the loan agreement shall include clear covenants. A covenant is a promise on the part of the borrowers to uphold certain conditions stated in loan agreements. Covenants are to protect creditors from risk associated with lending and compel borrowers to maintain their physical assets and forbid them from taking certain actions that could affect the equity. A loan covenant is a condition in a commercial loan that requires the borrower to fulfil certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to circumstances when other conditions are met.The violation of a covenant may result in declaring default event, applying penalties, or calling the loan. The legal provision in the agreement provides for calling the loan, in other words the "Acceleration Clause". Once the buyer defaults, all future payments due under the loan are "accelerated" and deemed to be due and payable immediately. This works as an injection and the purpose is to help the lender ensure that the risk attached to the loan does not unexpectedly deteriorate prior to maturity.From the borrower's point of view covenants often appear to be an obstacle at the time of negotiating a loan and burdensome restriction during its term. It is important to mention that, covenants may be waived, either temporarily or permanently at the sole discretion of the lender, however, this depends on the merits of each case and varies from bank to another.Even if the borrowers continue to pay the loan on time, they may perform certain actions that jeopardise their ability to pay back. To protect from risk, the lender may ask the creditor to enter into a covenant, which helps dictate the terms under which business remains eligible for a loan. Usually, covenants include maximum debt-to-equity ratios that the company must observe. Lenders calculate this ratio by dividing any debt a company owes by the amount of equity the company owns. The debt-to-equity ratio is the relationship between a company’s total debt and its total equity.Covenants can require a business to take out a certain amount of insurance as well as prescribe what business liens are permitted. In what’s called a negative loan covenant, creditor’s limit how much a company can owe at any given times and establish the payment schedule for dividends, if any are offered. Also, there are restriction regarding mergers, acquisitions, divestiture and investments in capital.By all means, banks and borrowers shall clearly understand the covenants agreed upon. As a borrower, take your time to negotiate to the extent that you know all the details in a sufficient manner; otherwise, you may be taken by surprise in future. Banks are also advised to be very careful to minimise all associated risks to achieve better results.Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. Email: [email protected]

Legal Perspective Shareholders are the owners of the company as they have the shares that constitute the company. With this in mind, I would like to stress the point that it is important for each shareholder, particularly, in joint-stock companies to learn that the company law gives shareholders certain legal rights and protection against some specifics by the company or the Board or other 3rd parties. The shareholders, it goes without saying, are supposed to know their rights and their duties as well, in their company. The statutory protection given to shareholders is provided for in the company law, wherein, the different assemblies of the company are not authorised nor allowed to take, add or amend any of the legal rights conferred on the shareholder by the law particularly the company law. This important statutory right has been vested with all shareholders regardless of the fact that they are individuals or institutions, small or big, smart or dull, active or otherwise, etc. This legal stand constitutes a healthy environment and should give each shareholder the necessary boost and charisma to preserve such statutory rights and to maintain them all through his holder-ship. It would be very interesting to mention that many shareholders in many companies are either ignorant about this de jure situation or merely they don’t understand that this statutory right and privilege should be maintained and exercised all through their equity shareholding. In certain instances, it has been observed that the general assembly has gone astray in relation to certain rights of shareholders. A good example, could be the emergence of certain discussions in some issues during the general assembly and their refusal for discussion because they are not included in the agenda as required by the law. This could be a good excuse to escape from the situation. This practice, to my knowledge, happens frequently as there is provision that says, only issues in the agenda are to be discussed. However, this provision should not be taken as absolute prohibition otherwise this will be against the intention of the lawlegislature. It should be clear that decisions or resolutions taken in such instances could be considered illegal, void “ab initio” and of no effect. Particularly, when such matters raised for discussion are of prime importance for the company and or there is urgent need to discuss and deliberate during the on-going session. The door for discussion should be open and not closed for good. The chairman presiding the session should have a key of wisdom and professionalism. The shareholders statutory rights are many, such as the right to attend meetings, right to participate in discussions, right to call for meetings due to certain reasons and ultimately, the right to exercise the voting powers and the like. At certain times there could be difference of opinion in relation to certain issues between the Board, the executive management on one hand and shareholders on the other hand. We believe this is normal and encourageable, however, the differences shall not affect or jeopardise the statutory rights given to the shareholders as attending assemblies or participation in discussing any issue during meetings. Differences or disagreements could happen when the shareholders are active or knowledgeable, for example, when the company is planning a merger or acquisition, increase or decrease of the capital or involvement in mega projects, etc. There are examples wherein extensive debates had been going on in many countries between the shareholders and the management regarding such important issues. Some companies, have changed or stopped certain projects after facing justifiable resistance from the shareholders. Each shareholder, and likewise each company, shall work to achieve this result in good faith and high spirit to the betterment of the company and the shareholders who own the company through all tenure. Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. Email: [email protected]

Legal PerspectiveCommercial banks play a pivotal role in most trade finance transactions. Herein, the banks can take different roles, such as the issuing bank, the confirming bank, the nominating bank, the advising bank or otherwise depending on the intention and interest of the bank in serving their different clients.I believe that the role of each of the above-mentioned banks is important and highly needed for such transactions. However, the role of the confirming bank could be more important and very essential to complete the smooth process of trade finance transactions.Therefore, we need to know more about confirming banks. Under the UCP 600, a confirming bank is a bank that adds its confirmation to a letter of credit (LC) at the initial request or authorisation of the issuing bank, undertaking obligations similar to the issuing bank's own. In other plain words, it is a kind of a “confirmer” that agrees to perform the principal duties of the issuing bank.This banking activity adds an extra layer of security for the exporter (beneficiary), ensuring the payment even if the issuing bank defaults. Moreover, the key responsibilities of a confirming bank include examining documents for compliance and ensuring payment or negotiation if the presentation is complying.According to the UCP (Uniform Customs and practices for Documentary Credits) 600, explain the meaning of “Confirming Bank”. Sub-article 37 (c) of UCP 600 states: “A bank instructing another bank to perform services is liable for any commissions, fees, costs or expenses (‘charges’) incurred by the bank in connection with its instructions”.Based on this and according to sub-article 8 (b) of UCP 600, the obligation of a confirming bank begins only when it adds its confirmation to the credit: “A confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the credit”.In trade finance transactions, the issuing bank is in fact open to confirmation being added, but not mandating it. The confirming bank can add its confirmation, however, it still retains the right to decline the confirmation, as stated in sub-article 8 (d) of the UCP 600. As a rule, if a bank authorised or requested by the issuing bank to confirm a credit, is not prepared to do so, it must inform the issuing bank without delay and may advise the credit without confirmation. All this is optional for the confirming bank as they deem appropriate and acceptable for them.Many people ask if the issuing bank can also take the role of a confirming bank. Generally, the answer is yes. An issuing bank can also act as the confirming bank, although typically these are separate entities. Normally, the issuing bank issues the LC, while the confirming bank adds its own guarantee of payment, which provides greater security to the beneficiary. However, in situations where the issuing bank is also the one performing the confirmation, it's acting in both capacities within the same transaction.Even though, the role of the confirming bank is very clear, however, there are many cases in Courts between the issuing banks and the confirming banks and or clients. It is important to be more vigilant and careful in such transaction as they may cause unnecessary troubles and legal obligations.Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. E-mail: [email protected]