	(271562,26196,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft  wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"525\" height=\"512\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271563,26196,'MetaLink','content'),
	(271564,26196,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271565,26196,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft  wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"525\" height=\"512\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"393\" height=\"262\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271607,26200,'PostDate','2018-08-01 07:32:40'),
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	(271611,26200,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"348\" height=\"232\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271612,26200,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"393\" height=\"262\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271613,26200,'MetaLink','content'),
	(271614,26200,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271615,26200,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"393\" height=\"262\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"348\" height=\"232\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271657,26204,'PostDate','2018-08-01 07:32:40'),
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	(271661,26204,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"333\" height=\"222\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271662,26204,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"348\" height=\"232\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271663,26204,'MetaLink','content'),
	(271664,26204,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271665,26204,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"348\" height=\"232\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"333\" height=\"222\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271707,26208,'PostDate','2018-08-01 07:32:40'),
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	(271711,26208,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"308\" height=\"205\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271712,26208,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"333\" height=\"222\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271713,26208,'MetaLink','content'),
	(271714,26208,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271715,26208,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"333\" height=\"222\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"308\" height=\"205\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271760,26212,'MetaKey','content'),
	(271761,26212,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"297\" height=\"198\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271762,26212,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"308\" height=\"205\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271763,26212,'MetaLink','content'),
	(271764,26212,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271765,26212,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"308\" height=\"205\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"297\" height=\"198\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271807,26216,'PostDate','2018-08-01 07:32:40'),
	(271808,26216,'PostUrl','http://localhost:8888/tamimi/law-update-articles/seeking-your-rights-under-a-commercial-mortgage-do-not-file-a-case/'),
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	(271811,26216,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271812,26216,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"297\" height=\"198\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271813,26216,'MetaLink','content'),
	(271814,26216,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271815,26216,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"297\" height=\"198\" />The legal framework explained</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271879,26222,'PostDate','2018-08-01 07:32:40'),
	(271880,26222,'PostUrl','http://localhost:8888/tamimi/law-update-articles/seeking-your-rights-under-a-commercial-mortgage-do-not-file-a-case/'),
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	(271883,26222,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>');

INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`)
VALUES
	(271884,26222,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271885,26222,'MetaLink','content'),
	(271886,26222,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271887,26222,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"alignleft wp-image-8105\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271936,26227,'PostID','7959'),
	(271937,26227,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(271938,26227,'PostStatus','publish'),
	(271939,26227,'PostType','law_update_articles'),
	(271940,26227,'PostDate','2018-08-01 07:32:40'),
	(271941,26227,'PostUrl','http://localhost:8888/tamimi/law-update-articles/seeking-your-rights-under-a-commercial-mortgage-do-not-file-a-case/'),
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	(271943,26227,'MetaKey','content'),
	(271944,26227,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"372\" height=\"248\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271945,26227,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271946,26227,'MetaLink','content'),
	(271947,26227,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271948,26227,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"327\" height=\"218\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"372\" height=\"248\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(271966,26229,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
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	(271976,26230,'PostTitle','Seeking your rights under a commercial mortgage? Do NOT file a case!'),
	(271977,26230,'PostStatus','publish'),
	(271978,26230,'PostType','law_update_articles'),
	(271979,26230,'PostDate','2018-08-01 07:32:40'),
	(271980,26230,'PostUrl','http://localhost:8888/tamimi/law-update-articles/seeking-your-rights-under-a-commercial-mortgage-do-not-file-a-case/'),
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	(271983,26230,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"416\" height=\"277\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271984,26230,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"372\" height=\"248\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
	(271985,26230,'MetaLink','content'),
	(271986,26230,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7959&amp;action=edit'),
	(271987,26230,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"372\" height=\"248\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8045\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/lnkl.jpg\" alt=\"\" width=\"4288\" height=\"1612\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Here is your typical scenario: you are a bank and have entered into facility agreements with your clients against which possessory pledges over movable assets have been granted (that is, not a mortgage on land). Your client breaches the agreement and this has triggered your entitlements under the mortgages; You file a civil case before the court to give effect to the mortgage and invoke your rights, correct?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Far from it. You could be in violation of the applicable procedures of enforcing a possessory pledge. A recent judgment revealed that filing a civil case for the enforcement of a possessory pledge is the incorrect way, in terms of procedure, to claim the rights thereunder which may led to the dismissal of the case. The trap is an easy one to fall into.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Case background</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant, a bank, had filed proceedings relying on Article 1128 of Law No.22 of 2004 Promulgating the Civil Code (\"the Civil Code\") for the enforcement of its rights under a possessory pledge granted in connection with a facility agreement with the Defendant. Article 1128 defines a possessory pledge as a debt security issued by the debtor to the creditor where the creditor has the right to retain the collateral secured under the pledge until the debt is fully paid. The Article, which does not apply to mortgages on land, states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Possessory pledges shall be defined as a contract by which a person undertakes, by providing security for a debt owed by him or by a third party, to deliver to the creditor or to a stakeholder appointed by two contractors, a property which entails a material right to the creditor who is thereby authorized to retain the property until the debt is fully paid, and to have priority over normal creditors and creditors of a lower rank after acquiring his right from the price of this property, no matter under whose control it may be.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The court dismissed the case, deciding that Article 1128 was inapplicable to the case at hand because it was the incorrect procedure. The correct procedure that the Claimant should have pursued was to apply for an injunction order – which is in itself a fast-track procedure.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The legal framework explained</strong></p>\r\n<img class=\"wp-image-8105 alignright\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_373266265.jpg\" alt=\"\" width=\"416\" height=\"277\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The decision of the Court is the result of a domino effect of a series of interlocking legal provisions, leading to the following conclusion: a commercial entity, such as a bank, carrying out commercial activities is subject to the provisions of the commercial law. The commercial law on possessory, movable asset pledges requires that an injunction order is first applied for in order to enforce a commercial mortgage.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The sequence prescribed by law should be observed by any party wishing to enforce a possessory pledge in Qatar and develops as follows:</p>\r\n<p dir=\"LTR\" align=\"LEFT\">First and foremost, under Article 1156, the Qatari Civil Code expressly defers itself to any commercial laws where the latter provide for particular provisions regarding possessory pledges. As such, Law No. 27 of 2006 Promulgating the Trading Regulation Law (the \"Commercial Law\") does contain provisions particularly addressed at possessory pledges. Article 233 of the Commercial Law defines commercial mortgages-namely:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"Commercial mortgage means transferring property as the debtor’s security for a commercial debt.[…]\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When is a possessory pledge considered a commercial mortgage? The answer is where it is related to commercial activities undertaken by commercial entities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Article 12 of the Commercial Law, states that anyone performing a commercial activity in their own name as their occupation taking on any commercial form is considered as a commercial entity/trader. Applying the same to the above-mentioned case, does a bank fall under the above category? It may be unclear on the face of it, but Article 5(1) of the Commercial Law expressly states that banking transactions fall under the ambit of commercial activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Thus, where a possessory pledge is deemed to be a commercial mortgage based on the above, Article 241 of the Commercial Law expressly provides the way that the rights under such mortgages can be enforced, namely, that the creditor shall seek ‘an injunction order to sell all or part of the mortgaged property.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The above provisions, in light of the Civil Law’s deference to the Commercial Law, together led to the conclusion that the enforcement of possessory pledges, which are considered to be commercial mortgages, shall be sought via an injunction order. Where an injunction order is neglected, the case may be dismissed.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion - So, what do you do?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you have a possessory pledge over movable assets and you wish to exercise your enforcement rights, make sure you:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">determine if the pledge is a commercial mortgage or not and, accordingly;</li>\r\n 	<li dir=\"LTR\">identify the correct legal procedures to enforce that pledge.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">If the possessory pledge in question is a commercial mortgage, always start by applying for a fast-track injunction order in the Qatari Civil Courts. That is not to say that filing for an injunction order is immune to dismissal or that enforcement is certain, it is at discretion of the Court to grant the injunction. However, at the very least, abiding by the correct claim procedures: (a) eliminates the risk of dismissal based on procedural incorrectness, and/or (b), potentially increases the chances of success when filing a case on the merits. Should an application be correctly brought by way of an injunction order, and be dismissed, a bank can then attempt alternatively to bring a case on the merits arguing that all other \"correct\" forms of the claim have been exhausted and rejected.</p>'),
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	(272084,26239,'PostDate','2018-08-01 07:32:04'),
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	(272088,26239,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(272089,26239,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(272090,26239,'MetaLink','content'),
	(272091,26239,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7960&amp;action=edit'),
	(272092,26239,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" />Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" />The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
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	(272294,26259,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
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	(272296,26259,'PostDate','2018-08-01 07:32:04'),
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	(272303,26260,'PostID','7960'),
	(272304,26260,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(272305,26260,'PostStatus','publish'),
	(272306,26260,'PostType','law_update_articles'),
	(272307,26260,'PostDate','2018-08-01 07:32:04'),
	(272308,26260,'PostUrl','http://localhost:8888/tamimi/law-update-articles/guiding-charter-for-family-owned-businesses-in-saudi-arabia/'),
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	(272310,26260,'MetaKey','content'),
	(272311,26260,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft  wp-image-8108\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_574104421-2-1024x1024.jpg\" alt=\"\" width=\"521\" height=\"521\" />Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(272312,26260,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
	(272313,26260,'MetaLink','content'),
	(272314,26260,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7960&amp;action=edit'),
	(272315,26260,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft  wp-image-8108\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_574104421-2-1024x1024.jpg\" alt=\"\" width=\"521\" height=\"521\" />Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;'),
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	(272322,26261,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
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	(272324,26261,'PostDate','2018-08-01 07:32:04'),
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	(272333,26262,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
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	(272335,26262,'PostDate','2018-08-01 07:32:04'),
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	(272343,26263,'PostType','law_update_articles'),
	(272344,26263,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(272345,26263,'PostStatus','publish'),
	(272346,26263,'PostDate','2018-08-01 07:32:04'),
	(272347,26263,'PostUrl','http://localhost:8888/tamimi/law-update-articles/guiding-charter-for-family-owned-businesses-in-saudi-arabia/'),
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	(272350,26263,'UserAgent','Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
	(272351,26263,'CurrentUserID','8'),
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	(272353,26264,'PostID','7960'),
	(272354,26264,'PostTitle','Guiding Charter for Family Owned Businesses in Saudi Arabia'),
	(272355,26264,'PostStatus','publish'),
	(272356,26264,'PostType','law_update_articles'),
	(272357,26264,'PostDate','2018-08-01 07:32:04'),
	(272358,26264,'PostUrl','http://localhost:8888/tamimi/law-update-articles/guiding-charter-for-family-owned-businesses-in-saudi-arabia/'),
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	(272361,26264,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Ministry of Commerce and Investment (\"MoCI\") issued a Guiding Charter for Family Owned Businesses (\"Charter\") on 02-08-1439H corresponding to 18-04-2018G.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article will provide a summary of the key provisions of the Charter and the added benefits it will bring to family owned businesses in Saudi Arabia (\"FOBs\" or the \"Company\" as the case may be).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs play an important role in Saudi Arabia’s economy, investment environment and job market. However, despite their various contributions to the economy, FOBs have at times failed to realize their full potential due to various factors some of which include a lack of transparency with respect to the management and operations of the Company, inadequate succession planning and the absence of a well-defined dispute resolution mechanism for addressing conflicts within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although the Charter is not binding, the issuance of the Charter is a welcome development as its main aim is to promote the growth of FOBs in Saudi Arabia, and provide them with a set of guiding principles that will allow them to operate in line with international best practices and standards.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To which Companies does the Charter apply?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter is intended for use by FOBs that are incorporated as closed joint stock companies in Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FOBs that are listed on the Saudi Arabian stock exchange (the \"Tadawul\") as open joint stock companies are already subject to the Capital Market Authority’s corporate governance regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, the vast majority of FOBs operating in Saudi Arabia are not listed on the Tadawul. MoCI therefore recognized a need to fill this gap by establishing protocols for FOBs to follow.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Saudi Arabian Companies Law issued by Royal Decree no. M/3 dated 28-01-1437H corresponding to 11-11-2015G (as amended) (the \"Companies Law\") will take precedence over the provisions of the Charter as the Charter is meant to be complementary to the Companies Law and provide a set of guiding principles for FOBs to implement in conjunction with their existing regulatory obligations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What are the Charter’s Objectives?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The objectives of the Charter include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Provide a guiding framework for FOBs to operate in an efficient and growth-oriented manner in conformance with international best practices and standards.</li>\r\n 	<li dir=\"LTR\">Provide a common vision for family members with respect to the Company’s values and strategic objectives.</li>\r\n 	<li dir=\"LTR\">Enhance accountability and control mechanisms for the shareholders of FOBs.</li>\r\n 	<li dir=\"LTR\">Set-up well-defined strategies and protocols that promote transparency and govern the interaction of the family within the Company.</li>\r\n 	<li dir=\"LTR\">Achieve a proper and fair balance between the interests of the family members and the interests of the Company.</li>\r\n 	<li dir=\"LTR\">Put succession plans into place (for both ownership and management) to ensure their survival and orderly transition.</li>\r\n 	<li dir=\"LTR\">Provide a well-defined mechanism for the timely resolution of any family disputes that may occur, and to ensure that such disputes do not impede decision-making within the Company.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8108\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_574104421-2-1024x1024.jpg\" alt=\"\" width=\"322\" height=\"322\" />Shareholders’ Assemblies</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, shareholder meetings are conducted through the Ordinary General Assembly and Extraordinary General Assembly (collectively referred to as the \"Shareholders’ Assemblies\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Shareholders’ Assemblies are required to hold all of their meetings in accordance with the provisions of the Companies Law and the Company’s articles of association.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolutions passed during any meeting held by the Shareholders’ Assemblies are valid and binding upon all of the family members in the Company, regardless of whether such family members attended the meetings in which the resolutions were issued.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is entitled to submit a written request to the Board of Directors to invite the Ordinary General Assembly (or the Extraordinary General Assembly as the case may be) to convene provided the written request contains justifications for convening the Ordinary General Assembly. In the event the Board of Directors fails to respond to the Family Board’s written request, then the Family Board (discussed in further detail below) is entitled to seek the written approval of family members representing at least 5% of the Company’s share capital in order to obligate the Board of Directors to invite the Ordinary General Assembly to convene.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure that the Company operates in an institutional manner, family members are prohibited from taking any adverse actions that would prevent the Shareholders’ Assemblies from exercising their functions set out in the Companies Law, the Company’s articles of association and Charter.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Family Board</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter prescribes the formation of a Family Board. The Family Board’s competencies include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Monitor the overall performance of the Board of Directors and ensure they are compliant with the provisions of the Companies Law and the articles of association of the Company. For this purpose, the Family Board can provide an opinion on potential candidates for the Board of Directors. They also have the authority to investigate whether any member of the Board of Directors is engaging in an activity that is detrimental to the Company such as whether there is a potential conflict of interest or unauthorized disclosure of the Company’s trade secrets.</li>\r\n 	<li dir=\"LTR\">Resolve any disputes that arise between family members that may affect the Company’s operations (further details on the dispute resolution mechanism will be provided below).</li>\r\n 	<li dir=\"LTR\">Consider recommendations from family members for the investment of the Company’s assets and presenting them to the Board of Directors for their approval.</li>\r\n 	<li dir=\"LTR\">Take any necessary actions to ensure that new generations of family members are trained and prepared to manage the Company in the future.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The competencies of the Family Board cannot be in direct conflict with the competencies of the Shareholders’ Assemblies and Board of Directors under the Companies Law, the articles of association of the Company and the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is recommended for a Family Board to be formed when there are more than 12 family members in the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order to ensure the Family Board exercises its competencies in an effective manner, there should not be more than 6 Family Board members. Members of the Family Board are elected by secret ballot at a special meeting held for this purpose. Members should be elected based on their personal and professional capabilities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A member of the Family Board is not permitted to be a member of the Board of Directors or the executive team of the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Family Board members is restricted to 3 years, and a member is not permitted to be on the Family Board for more than 2 consecutive terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Elections for Family Board members take place under the direction of an Election Committee consisting of 5 family members or any other members appointed by the Ordinary General Assembly. A member appointed to the Election Committee is prohibited from serving as a Family Board member. The Election Committee is required to hold elections for the Family Board members at least 25 days prior to the end of their term. The Election Committee should ensure that the election process is held transparently and impartially.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board should have a Chairman and Deputy-Chairman. They are selected by the Family Board members through secret ballot under the supervision of the Election Committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Family Board is required to hold at least 4 meetings each financial year. The Family Board should hold a special meeting prior to any meeting held by the Shareholders’ Assemblies in order to consider the agenda items and to make any recommendations it considers necessary within the scope of its competencies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The majority of the Family Board members should be present in order for a meeting to be valid. Resolutions issued by the Family Board will need to be approved by a majority of the members present at the meeting. In the event of a deadlock, the Chairman will have the casting vote. The Chairman will invite the Family Board to convene when requested to do so by 2 or more members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Family Board members are entitled to receive remuneration for attending meetings. Remuneration will be equivalent to what is prescribed to Board of Directors members who attend meetings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As referenced above, the Charter prescribes a multi-tiered mechanism for the resolution of any disputes that may occur between family members.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Initially, private discussions are held between members of the Family Board to determine the reasons for the dispute and the most optimal way forward to resolving the dispute. The Family Board assigns the Chairman or one of its members who do not have any involvement in the dispute to take the lead in amicably resolving the dispute. The Family Board member assigned to resolve the dispute will then hold discussions with the disputing parties in an effort to resolve the dispute in a manner that is in the best interests of both the family members and the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the event the dispute cannot be settled amicably, a conciliation body consisting of non-family members will be formed in an attempt to settle the dispute in a fair and impartial manner. The Family Board, in consultation with the disputing members, will determine the scope and composition of the conciliation body.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the conciliation body referred to in the preceding paragraph cannot be formed or is unable to resolve the dispute, the Family Board will recommend the disputing parties to resolve their dispute through arbitration or a court. The Family Board will need to take necessary measures to ensure that this does not have an adverse effect on the Company’s operations. The Family Board should continue to make an effort to resolve the dispute until a final binding decision is issued by the arbitration tribunal or court. When a final binding decision is issued, the Family Board should ensure that this decision is implemented.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Board of Directors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Similar to what is provided in the Companies Law, the Board of Directors has wide ranging authority to manage the affairs of the Company and maximize its value. All shareholders are prohibited from interfering with the Board’s functions or the executive team of the Company, unless they are members of the Board or the executive team.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Board members of the Company will be elected by the Ordinary General Assembly. The recommended number of Board members should be between 5 and 9.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A Chairman and a Deputy Chairman will need to be elected by the Board of Directors through secret ballot. The Chairman of the Board of Directors is not permitted to hold an executive position within the Company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When electing Board members, the Ordinary General Assembly should take into consideration each candidate’s personal and professional capabilities such as his or her ability to lead, competence, financial expertise and medical fitness.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The term of the Board of Directors cannot exceed 3 years. Board members may be re-elected for 1 or more terms.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The CEO of the Company is selected through a resolution issued by the Board of Directors. It is not permissible for the CEO to be the Chairman or Deputy Chairman of the Board of Directors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form an Advisory Board to assist it with its functions. The members of the Advisory Board should have the necessary experience and competence to assist the Board of Directors in developing strategic objectives to ensure the Company’s continuity and growth. The Board of Directors is tasked with establishing the bylaws for the Advisory Board which must then be submitted to the Ordinary General Assembly for approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Board of Directors has the authority to form additional committees as it deems necessary to assist it with its functions.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sale of Shares</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Any shareholder who intends to sell all or part of his or her shares in the Company will be required to notify all of the shareholders in writing through the Board of Directors. Each shareholder may exercise their priority right to purchase the shares put up for sale within 30 days from the date of notification. In the event 30 days elapse and no shareholder exercises his or her right to purchase the shares, the shareholder may proceed to sell the shares to a third party. It should be noted that this procedure will not be applicable to any transfer of shares by legal inheritance.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Company Policy</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A human resources policy should be developed for the Company that contains clear rules for employing a family member, which will address issues such as qualifications, experience, performance, evaluation and termination.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is not permissible to create a position for the specific purpose of appointing a family member. Additionally, it is not permissible to terminate, without a valid justification, an employee who is not a family member in order to replace him or her with a family member instead.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The salary of an employee, whether or not a member of the family, should be commensurate with the employee’s position, responsibilities, academic qualifications and level of performance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The work of a family member employed in the Company should not be subject to the supervision of another family member. In addition, no more than 1 member of the family should work in the same department unless it is in the best interests of the Company.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Additional Provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A family member is entitled to submit a proposal to amend the Charter. The Family Board will assess the proposal to amend the Charter and prepare a report on its findings which will be presented to the Ordinary General Assembly for its consideration and approval.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The articles of association of the Company should be amended in order to be commensurate with the provisions of the Charter.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Charter should be reviewed by shareholders on a regular basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is advisable for the Charter to include the names and signatures of each shareholder of the Company on the final page.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\nIn conclusion, even though the Charter is merely a guide and is not mandatory for FOBs operating in Saudi Arabia, its issuance is nevertheless a positive development as it will raise a general awareness amongst FOBs of the importance of implementing proper governance frameworks and point the way to international best practice and standards and allow them to increase their contribution to the local economy. It may also provide a roadmap for the enactment of future legislation that will be binding on FOBs.\r\n\r\n&nbsp;');

