Law & Society

Article (5):(Registration Arresters and Objection to Registration)

(a) No company shall be registered with a name chosen for a fraudulent or an illegal objective. And no company shall be registered with the name of another company already registered in the Kingdom, or with a name so similar thereto that may lead to confusion or deception. The Controller may reject the registration of a company with such name in any such cases.

b) Any company may submit a written objection to the Minister, within sixty days from the date of the publication of the decision to register another company in the Official Gazette, for cancellation of the registration of such other company, if the name under which it is registered is similar to its name or resembles it to the point that would lead to confusion or deception. The Minister after giving the company, whose registration is contested, time to submit its defense within the period specified by him, will issue his decision to cancel the registration of the other company if he is convinced by the reasons for the objection to its registration, and the company does not amend its name and remove the reasons for the objection. Any party aggrieved by this decision may appeal to the High Court of Justice within thirty days from the date of the publication thereof in one of the local daily newspapers.

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.