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  • 18 January 2022

Judicial liquidation

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Judicial liquidation

Judicial liquidation: The liquidation of the company by the judiciary according to the reasons for liquidation in the event of rejection by the partners of the consensual liquidation or as called by the system of optional liquidation companies in article (205) and the court appoints the liquidator and determine his powers and restrictions on his powers and fees and the duration of the crisis for liquidation From the extrapolation of the system and the case law, the liquidation takes place in the event of expiry of the company’s term according to article 200 and three if all or some of the partners refrain from continuing the company, or if the company achieve losses of up to fifty percent of the capital and the partners refuse to continue it in accordance with Article 100 and the Nin of the system or as you decide to judge that one of the legitimate reasons justifying the dissolution of the partnership is that there is a persistent misunderstanding between the partners which renders their cooperation impossible, from which the court terminates the liquidation decision and if the company does not have residual property and has no obligations or employees, it does not need to appoint Liquidated or doing liquidation the court shall rule that the company has been liquidated between the parties either if the company has the necessary liquidation of the assets or reciprocal obligations, it appoints a liquidator and the company has the hand of the Secretariat to terminate the work assigned to it, which we mentioned in the previous article (the consensual liquidation) Which is defined in section X of the corporate system and in the event of the expiry of the work of the liquidator, profits or losses are divided between the partners according to the quotas equally, unless the contract of incorporation of the company provides otherwise. The competent court for the liquidation shall be the jurisdiction of the Office of the Ombudsman by virtue of the Council of Ministers decrees No. 241 Date 26/10/1407 Ah, no. 261 and 17/11/1423 H,