The Contradiction of the legal Provisions with the Nature of the Solidarity Company

Abstract

This article is studying the contradiction of legal provisions provided by the Saudi Companies Regulation (No 6/M/1385H), and its amendments, and the Jordanian Companies Act (No 22/1997M), and its amendments, with the special nature that the solidarity company is characteristic with.

The dilemma of this study appears in the case that there are some sorts of provisions that are stipulated in the Saudi Regulation and in the Jordanian Law concerning the special nature of the solidarity company regarding the responsibility of its partners in addition to the situation ‘where a partner shall grant a merchant or trader title’. Moreover, the application of these provisions is seen - in some cases – to lead to a critical situation that concludes to the existence of partners in the company who their responsibilities are not solidarity or personally for the company’s debts and commitments, the matter that is seen contrary to the special nature of this company.

This article is divided into three sections; the first dealt with the identification of the special provisions related to partners in the solidarity company; while the second is dealing with the responsibility of partners in the company and the acceptance of new partners; finally, the timeframe of partner’s responsibility.

This study has uncovered number of crucial results, where – for example - we concluded that both of the Saudi and Jordanian legislators have stipulated some provisions that do not correspond with the special nature of this company - such as the characteristic of a partner and his entry to the company. In addition, this study reached to number of recommendations, the most important of which were attributed with modification of some special rules in order to be corresponded with the special nature of this company, whether in regard to partners’ characteristics or the number of partners in the company, in addition to the conditions required to the entry of new partners and their responsibilities.

Keywords: Solidarity Company, Solidarity responsibility, the role of a partner in the company, the entry of new partners, the withdrawal of partners, the joining of heirs.