Abu-Ghazaleh Holds Discussion With Experts About the Responsibility of Partners in New Judicial Decisions
Talal Abu-Ghazaleh Knowledge Forum organized a panel discussion on “the new judicial decisions in the responsibility of partners and signatories in limited liability companies”; chaired by HE Dr. Talal Abu-Ghazaleh and attended by lawyers, businessmen, stakeholders and media professionals.
During the session, many experts stressed the importance of creating a stable legislative environment that is free of conflict; encouraging to investors and in compliance with international legislations.
Dr. Talal Abu-Ghazaleh summarized the main recommendations discussed by the participants and pointed out that it is not individuals who should be penalized for an institution’s shortfalls and deficiencies adding that it is important to differentiate between the responsibilities of the administration and that of the investor. He added: “There are different judicial decisions under the same topic which need to be addressed. In some cases, decisions conflict in favor of some parties against others.”
He referred to the need for addressing conflict of laws. Each country is obliged to amend its legislation according to international agreements and comply with the law while issuing decisions. He called for the establishment of a department dedicated to settling conflicts with investors especially in light of the fact that they are entitled to take legal action against any country that violates investment laws.
Regarding the double penalty fine applied to the litigant in certain cases, Dr. Abu-Ghazaleh stated that this is unconstitutional and instils fear of the judiciary which must represent the rights of all people. He also called for changing the stereotype that portrays a merchant as a stakeholder. The merchant, like any employee or worker, serves the nation and contributes to solving problems, namely unemployment.
He stressed the importance of involving stakeholders in the law amendment or decision-making processes. This allows for solutions to be reached that satisfy all parties and achieves the ultimate goal of keeping investors rather than alienating them.
Through the session, Lawyer Dr. Ghalib Shniekat reviewed the legal responsibility of partners and the administration in limited liability companies according to the Jordanian Companies Law and Jordan legislation. On the other hand, Lawyer Qasim Al-Dhmour reviewed the responsibility of partners and signatories for financial statements and tax liabilities related to the limited liability companies. In addition, Lawyer Dr. Tawfiq Al-Harsh reviewed the past and new judicial decisions issued by the Jordanian Judiciary some of which explicitly violate the article on the responsibility of a limited liability company partner. Also, Lawyers Thabit Al-War and Tariq Abu-Raghib discussed the effect of the change in judicial decisions on investment, especially when partners and the administration are responsible; in a personal capacity, for the taxes resulting from the activities of their limited liability company.
The speakers stressed that a stable legislative environment attracts investors. They also called for maintaining national investments by providing facilities since this contributes to national output and job creation for youth; referring to the fact that the Jordanian economy will be at risk if the current state of investment does not change.
It should be noted that the stakeholder discussions are ongoing in the development of a final report that includes recommendations for decision-makers and relevant entities to address the deficiencies and current challenges in order to protect current investments and preserve the rights of the nation and its citizens.
Talal Abu-Ghazaleh Organization
Talal Abu-Ghazaleh Organization (TAG-Org) is the largest Arab group of professional service firms. TAG-Org is meeting this challenge by providing highly experienced specialists who anticipate economic and social trends and evaluate alternatives to determine the most creative solutions for both present and future challenges.
TAG-Org operates out of 73 offices and 180 representative offices worldwide
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