01
Legal issue
A term depriving a partner or shareholder of profits, or exempting that person from losses, is void; the share is determined proportionately to the capital contribution.
02
Published principle
The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.
This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.
Under Article 27 of the Commercial Companies Law, any provision depriving a partner or shareholder of the right to participate in profits, or exempting that person from bearing losses, is void. In that event, the person’s share of profits and losses is determined in proportion to the contribution to the company’s capital.
03
Applicability
A prohibited complete exclusion from profits or losses must be distinguished from lawful classes of rights, contractual allocation mechanisms and special structures permitted by current law. This is an account of the published principle, not a full judgment translation.
04
Related instruments
- Commercial Companies Law, Article 27
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