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Instructions for Implementing the Procedures to Enforce a Judicial Decision to Sell Shares of

 

Partners in a Limited Liability Company for 1997¨

 

 

Article (1):

These instructions shall be called the (Instructions for Implementing the Procedures of Enforcing a Judicial Decision to Sell a Share or more of a Partner in a Limited Liability Company).

 

Article (2):

The Companies Controller, in case of his notification of any judicial decision to sell a share or more of a partner in the capital of a limited liability company whether by being directly notified of such a ruling through the Court or through the company, realize the following procedures:

 

a) Send a written notification of the issuance of the judicial decision concerning the share of one of the partners to the company. The managers committee or the general manager of the company, as the case may be, shall notify all the partners of this decision within a period that does not exceed a week as of the date of receiving the letter of the Controller to grant them the right of utilizing their priority in buying that share if they wish to do so. The company shall inform the Companies Controller of its notification of all the partners to utilize their legal right within the period stipulated.

 

b) The partners shall inform the Companies Controller of their wish to practice the priority right within two weeks as of the date of the company notifying the partners of (their right) to practice the priority right in buying.

 

Article (3):

The Companies Controller shall notify the procedural head of the Court, which issued the judicial decision, with the result of the partners in the company practicing the priority right in buying.

 

Article (4):

The Controller shall notify the Court, which issued the decision to sell a share or more of any partners for which the decision was issued in an auction in accordance with the legal procedures in force if none of the partners practice the priority right within (30) days as of the issuance of the Court decision.