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Federal Decree Law on Commercial Companies

The last update on this law was listed on 20 Sep 2021

Related legislations

Issued Date

20 Sep 2021

Effective Date

02 Jan 2022

Official Gazette Date

26 Sep 2021

Official Gazette No

712

Legislation State

Active

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

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Part One: General Provisions on Companies

Chapter Two: Incorporation and Management of Company

Part One: General Provisions on Companies

Chapter Two: Incorporation and Management of Company

Article (18) Rules of Contributing to the Company's Capital

1. If the partner's contribution is a title to property or any other right in-rem transferred to the Company, such partner shall be liable in accordance with the provisions applicable to contracts of sale with regard to title transfer, guarantee of the contribution in case of depreciation or maturity or in the event of an apparent defect or shortcoming in the contribution, unless agreed otherwise.
2. If the contribution is based merely on the utilization of funds, the provisions applicable to lease agreements shall apply to the issues set out in Clause 1 of this Article, unless agreed otherwise.
3. If a partner's contribution represents debts payable by third parties or other incorporeal rights, such partner's liability vis-à-vis the company shall only be relieved when such debts are settled. Moreover, the partner shall be liable to indemnify the damage sustained by the Company if such debts are not settled when they become due.
4. Subject to the provisions of the law regulating copyrights and ancillary rights and the law regulation the protection of industrial property rights, if the partner's contribution in the Company is his work, then every revenue generated from such work shall be the property of the Company, provided that the partner has not obtained such revenue from the right to a patent, unless otherwise agreed.

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