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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 Two: Partnerships

Chapter One: General Partnership

Part Six: Holding and Subsidiaries Companies and Mutual Funds

Chapter One: Holding Companies

Part Two: Partnerships

Chapter One: General Partnership

Article (59) Mutual Obligations Between The Company and Partners

Without prejudice to the provisions of the MOA of the General Partnership, the following obligations shall be observed:
1. The Company shall pay any amounts the partner has personally paid on behalf of the Company to enable the Company to conduct business as usual or to maintain the assets and activities of the Company.
2. The partner shall indemnify the Company for any benefit gain by him upon performing any work in connection with the Company or due to his use of its property, name or trademarks without the consent of the Company.

Part Six: Holding and Subsidiaries Companies and Mutual Funds

Chapter One: Holding Companies

Article (269) Objects of the Company

1. The objects of a holding company shall be limited to the following:
   a. To hold shares or equity stake in Joint Stock Companies and Limited Liability Companies;
   b. To provide loans, guarantees and finance to its subsidiaries;
   c. To acquire real estate and movable assets for its activities and operations;
   d. To manage its subsidiaries; and
   e. To acquire intellectual property rights from patents, trademarks, industrial drawings and designs or franchise rights, and to lease the same out to its subsidiaries or to other companies.
2. Holding Companies may only conduct their activities through their subsidiaries.

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