QUESTION: We are engaged in real estate business and we sublet the leased property. One of our tenants in an apartment is not paying the rent. Three months’ rent is due from him. We have his post-dated guarantee cheque which we collect from our tenants as security deposit. He is not ready to vacate the premises prior to the expiry of contract. We approached the rental court but it did not accept the case because the lease agreement is not registered. We then approached the owner for registering the lease agreement, but he refused to do so as it incurs a huge amount. Is it mandatory to register the lease agreement? Is it possible to register our contract with the tenant? Is there any legal issue if we use the guarantee cheque for payment due?
OI, Doha

ANSWER: Lease agreements should be registered by the landlord at the Office for Registration of Lease Contracts at Ministry of Municipal Affairs and Agriculture. The lease contract must be registered in order for the landlord to be able to bring a claim in respect of the lease agreement before the Rental Dispute Settlement Committee or court. 
The registration office shall charge an annual registration fee of 1% of the annual rental value of the premises, to be paid by the landlord. As the contract with the tenant is sublease of the premises, the main lease contract registration is mandatory for the registration of the sublease agreement. 
Lessor can deposit the security cheque for the recovery of unpaid rent. The tenant cannot raise the defence that cheque was issued as a guarantee; the cheque is a tool of payment and it’s not an instrument of credit.

Being drunk in a public place

Q: When I was waiting for my friend outside my accommodation, police stopped by and interrogated me. They found me drunk. Police filed a case against me and took me to court. I have paid a fine and have settled the case before the public prosecution. But, now I come to know that in the criminal court there is a case against me. And it’s the same issue. What may be the offence they have charged on me? 
HM, Doha

A: According to Article 270 of the Qatar Penal Laws, anyone who is found drunk on a main street or anyone who disturbs others due to intoxication shall be punished for not more than six months and a fine of not more than QR3,000 or both. The payment that you made at the public prosecution is not fine or settlement amount, it is the bail amount. 

Summons to witness

Q: I have received a notice to appear before the criminal court for a case in which I am a witness. The incident happened a long time ago. I don’t remember my statement to the police during investigation. If I don’t appear, how will it affect me? Is there any problem if I appear and say that I don’t remember the fact of the case? 
FG, Doha

A: If the witness fails to appear before the court, after summoning him in accordance with the law, the court may postpone the case to reissue the summon, or order to arrest and bring him before the court. 
If the witness fails to attend for the second time or to take the oath or testify without an admissible reason, the court may, after hearing the statements of the Public Prosecution, make him subject to the provision of Article 179 of the Penal Code. 
As per Article 179 of Penal Law of Qatar, if the person being a witness refused to appear, take oath or otherwise withholds testimony without any valid reason for such refusal shall be punished with imprisonment for a term not exceeding six months or a fine not exceeding QR3,000 or both. Such witness shall be exempted from punishment, if he/she appear prior to the issuance of judgment in subject matter.
According to Article 202 of the Criminal procedure, if the witness claims that he does not remember the fact or his testimony in the hearing contradicts the former testimony or statement, the part of his testimony related to the incident may be read out from his statement during investigation or from the record of collected evidence. 

Liability of shareholders

Q: I hold 5% shares in a company in Doha. The company is in loss and several of its cheques have bounced because of insufficient funds. I don’t have signatory right in the company. I wish to travel out of Qatar by the end of this month. Am I personally liable for the bounced cheques or for the liability of the company?
CY, Doha 

A: The signatory of the dishonoured cheque shall be held liable for cheating and the prohibition of travel may be imposed upon him. The shareholders of the company are not liable for the offence of cheating due to dishonour of cheques. In case any other claim related to the company, shareholders are not responsible unless they have guaranteed or undertaken to pay such claims.
In a civil case judgment against the company, the execution will be on the company assets and within the limits of the share capital.

* lPlease send your questions by e-mail to: leges@qatar.net.qa (Mobile:55813105)

LEGAL SYSTEM IN QATAR

According to article 95, the public shareholding company is administrated by an elected board of directors, and the article of association of the company shall define its formation, the number of its members, and duration of its membership provided the number of its members shall not be less than five and shall not exceed eleven. 
The tenure of board members is set for a period of three years, except the first board of directors, tenure could be five years and they can be re-elected more than once unless stated otherwise in the articles of association. 
The general assembly elects the board of directors by secret ballot. As an exception, the founders may appoint the first board of directors.
As per article 98, except for the government representatives in the public shareholding companies, or the persons holding shares of at least 10% of such companies, no person may in his personal capacity or in the capacity of being the representative of any corporate person, be a member in the board of directors of more than three public shareholding companies having its principal place of business in the state. 
A person may not be a chairman or the vice-chairman of the board of directors in more than two companies having its principal place of business in the state.
In all cases, no person shall, neither personally nor as a representative of corporate person, be a delegated member of the management in more than one company having its principal place of business in the state; or be a member of the board of directors in two companies of similar activity.
According to article 99, if the state becomes a shareholder in a public shareholding company, each such shareholder shall have the right to nominate its own representative to the board of directors in proportion to the shares it owns instead of participation in electing members of the board of directors. The number of such board representatives shall be deducted from the total number of the board members for election purposes. 
The state shall have exclusive right to dismiss such representatives and replace them with others at any time. The representatives assigned in the board of directors shall have all rights and obligations equal to those of the other elected members. The state will be responsible for the works of its representatives towards the company, its creditors, and its shareholders. The representatives of the state in the board of directors of the public shareholding companies, are exempted from offering security shares for their membership.
The board of directors shall elect by secret ballot a chairman and deputy chairman for one year, unless the article of association provides for another term, which shall not exceed three years. The board of directors may elect by secret ballot one or more members delegated to management and who shall have the right to sign for the company jointly or severally as decided by board resolution.
As per Article 101, if there is vacancy in the board of directors, it shall be occupied with the highest number of votes among those who did not succeed in obtaining the board of directors membership. If anything prevents him from occupying the position, the next in order shall fill the vacancy; and the new member only completes the term of office of his predecessor.