Commercial Companies Law

Article 101 — Article (101) MOA Amendment, Capital Increase or Reduction

Part Three: Limited Liability Company · Chapter Three: General Assembly

1. Notwithstanding the provision of Article [85] of this Decree Law, the company's MOA may not be amended and its capital may not be increased or reduced unless approved by a number of partners holding at least three quarters of the shares represented at the meeting of the General Assembly. The ratio of increase or reduction shall be according to the equity stakes of the company's partners. In all cases, the financial obligations of the partners may only be increased based on their unanimous consent. 2. If the increase in the company's capital is necessary to save the company from liquidation or to settle debts owed thereby to a third party, based on a report of the company's chief financial officer or his delegate, and the company does not have sufficient liquidity to settle such debts or to achieve the ratio stipulated in Clause [1] of this Article, any partner may recourse to the courts seeking a summary judgement to increase the capital as necessary to save the company or settle the debts. In the event that any partner fails to settle the obligations resulting from the increase, any other partner may settle the same on his behalf. In such a case, a number of shares of the company equal to the amount paid for both himself and the defaulting partner shall be granted to the paying partner.

WAWhatsAppTGTelegram