AMMAN – 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, conflict-free environment, attractive to investors and compatible with international legislations.
Dr. Talal Abu-Ghazaleh summarized the main recommendations discussed by the participants and pointing on that not individuals who should not be penalized for institutions’ shortfalls and deficiencies, andthat it is important to differentiate between the responsibilities of the administration and that of the investor.: “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.
Dr. Abu Ghazaleh stressed the importance of involving stakeholders in the law amendment or decision-making processes. This allows for solutions that satisfy all parties and achieve the ultimate goal of keeping investors rather than alienating them, he said.
Duringthe 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. 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 current judicial decisions issued by the Jordanian Judiciary of which explicitly some 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 in the process of develpoing a final report that includes recommendations for decision-makers and relevant entities to address deficiencies and current challenges in order to protect current investments and to preserve the rights of the nation and its citizens.
