legal explains the mechanisms of exit and competition within the activities of the Asharqia Chamber of Entrepreneurship incubator
Under the title "Legal Illuminations for Entrepreneurship", the Asharqia Chamber represented by the "Asharqia Chamber of Entrepreneurship Incubator" recently held a workshop during which lawyer Mohammed bin Hamad Al-Marri spoke, touching on several issues related to trade, commercial entities and the mechanisms followed regarding issues facing the worker in this field.
Al-Marri said that the merchant, according to the definition of Article 1 in the Commercial Court Law, is the one who “worked in commercial transactions and took them as a profession. However, the Saudi system was not satisfied with the personal criterion in defining the merchant, but rather expanded it to include businesses that are considered commercial, even if the merchant did not practice them.
Al-Marri moved by talking about the capital to mention that the partners should agree on the mechanism, time, and nature of the company’s capital and the possibility of raising it to keep pace with the market, as well as agreeing on what should be done if some partners are unable to raise the capital.
He also stressed the importance of adhering to the company’s objectives so as not to incur responsibility for its management in the event of a violation of the company’s objectives. It is also not recommended to expand the company’s objectives so as not to be an obstacle to the partners in competition. He also cautioned on the need for transparency of the parties’ relationship with the company in the event of a conflict of interest.
Within this context, Al-Marri touched on several issues related to commercial work, and reviewed them from purely legal aspects, including management, responsibility, rights and powers, the purposes of the company, exit, and liquidation.
He spoke about the issue of disputes in the commercial market and stated that solutions are usually achieved either by arbitration or by resorting to the judiciary or the authorities concerned with such issues.
At the end of the workshop, the lecturer gave several tips in the process of signing contracts, including signing all pages, taking copies of documents, agreeing on a common language between the contractors, and agreeing on exit mechanisms and dispute resolution.
