The Impact of Expulsion from a Company on the Rights and Obligations of the Expelled Partner
DOI:
https://doi.org/10.65263/2gz8g507Keywords:
Exclusion of a Partner, Forced Exclusion of a Partner, Forced Removal of a Partner, Removal of a PartnerAbstract
Abstract
Notwithstanding the strength of the partner’s right to remain within the company which constitutes one of the most prominent rights vested in the partner and guarantees his continued status as a partner so long as he so wishes, without any possibility of being compelled to excluded this right is not absolute. It may be restricted through the application of exclusion whenever excludedpartner, whether by his own will or without it, gives rise to circumstances that justify the application of this legal mechanism. The purpose of such exclusion is twofold, on the one hand, to protect the company, and on the other, to impose an appropriate sanction on the excluded partner, so as to prevent any adverse impact on the company’s continuity of activity and, consequently, to avert its premature dissolution prior to the achievement of its corporate purpose. Once a partner is excluded, a set of legal effects ensues with respect to him, as he loses the status of partner, which results in the acquisition of certain rights and the loss of others. Moreover, he is relieved of the obligations imposed upon him in his capacity as a partner, while, at the same time, certain obligations are imposed upon him, the breach of which gives rise to his liability as a sanction for non compliance.
References
First: Books
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2- Dr. Abd al-Razzaq Al-Sanhuri, Al-Wasit in the Commentary on the Civil Code, Vol. 5: Contracts Affecting Ownership, Arab Heritage Revival House, Beirut, n.d.
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10- Mohamed Al-Amin Hashi, “The Legislative Framework of the Rights and Obligations of a Partner in a Commercial Company,” published in Al-Midad Journal, Vol. 2, No. 2, 2023.
11- Dr. Nawaf Hazem Khalid and Al-Sayyid Ali Obeid, “Civil Liability Arising from the Abuse of the Right to Use Procedural Means in Civil Litigation,” published in Al-Rafidain Journal of Law, Vol. 12, No. 44, 2012.
Third: Messages and Theses
1- Mohamed Abduh Hatem, Exclusion of a Partner and Its Effects on a General Partnership, Master’s Thesis, Faculty of Law, Middle East University, Jordan, 2010.
2- Salah Ajmi Jameel, Abuse of Rights in International Judicial Procedures, Doctoral Dissertation, College of Law, University of Babylon, Iraq, 2019.
3- Samira Daif, Judicial Exclusion of a Partner and Its Effects on a General Partnership, Master’s Thesis, Faculty of Law and Political Science, Ziane Achour University, Algeria, 2020.
4- Waddah Hamid Qa’id, Withdrawal of a Partner from a General Partnership: A Comparative Study, Master’s Thesis, Faculty of Law, Al al-Bayt University, Jordan, 2012.
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Fourth: Judicial Decisions
1- Egyptian Court of Cassation Decision, Civil Chamber, Appeal No. (325/74 Judicial Year), issued on May 24, 2005, published on the website: www.ahmedazimelgamel.blogspot.com
2- Federal Court of Cassation Decision No. (322/Second Civil Panel/1972), issued on October 30, 1972, published in the Judicial Bulletin, Issue No. 3, Year 3, 1974.
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