The business associations discussed above may be dissolved upon the occurrence of any of the following: (1) expiration of the entity's term; (2) accomplishment of the entity's stated objectives; (3) adoption of a resolution of the entity's members to dissolve the entity; or (4) issuance of a court judgment of dissolution.
There are several specific grounds for dissolution of partnerships, which include: (1) the incapacity or bankruptcy of a general partner; and (2) a substantial loss of the partnership's capital. In addition, there are specific grounds for the dissolution of limited liability companies and joint stock companies.
A limited liability company may be dissolved upon the recommendation of its managers, or of its members representing at least 75 percent of the limited liability company's capital, made in the event the limited liability company lost at least half of its capital. In the event more than 75 percent of the company's capital is lost, the recommendation of the company's members only requires a majority of 25 percent to pass. Additionally, if the company's capital falls below QR 200,000, any one shareholder may obtain dissolution of the company.
In a joint stock company, in the event the company losses at least 50 percent of its capital, the board of directors is required to call for a general meeting of the shareholders that would vote to dissolve the company, to decrease the company's share capital or to take any other action deemed necessary. If the board of directors fails to call for such a general meeting, any member of the company is entitled to petition the courts to issue a dissolution order for the company.
There are several specific grounds for dissolution of partnerships, which include: (1) the incapacity or bankruptcy of a general partner; and (2) a substantial loss of the partnership's capital. In addition, there are specific grounds for the dissolution of limited liability companies and joint stock companies.
A limited liability company may be dissolved upon the recommendation of its managers, or of its members representing at least 75 percent of the limited liability company's capital, made in the event the limited liability company lost at least half of its capital. In the event more than 75 percent of the company's capital is lost, the recommendation of the company's members only requires a majority of 25 percent to pass. Additionally, if the company's capital falls below QR 200,000, any one shareholder may obtain dissolution of the company.
In a joint stock company, in the event the company losses at least 50 percent of its capital, the board of directors is required to call for a general meeting of the shareholders that would vote to dissolve the company, to decrease the company's share capital or to take any other action deemed necessary. If the board of directors fails to call for such a general meeting, any member of the company is entitled to petition the courts to issue a dissolution order for the company.
April 18, 2010 at 9:27 AM
The business associations discussed above may be dissolved upon the occurrence of any of the following: (1) expiration of the entity's term; (2) accomplishment of the entity's stated objectives; (3) adoption of a resolution of the entity's members to dissolve the entity; or (4) issuance of a court judgment of dissolution.