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QUESTION: I have issued a postdated bearer cheque to someone who later reported that he had lost it. What are the procedural formalities to cancel the cheque?
XD, Doha
ANSWER: If a bearer cheque is lost, a complaint should be lodged with the nearest police station and court proceedings are to be initiated to get the cheque cancelled. As per Article 588 of the Trade law, if a bearer cheque is lost or destroyed, the owner shall be entitled to submit an objection to payment of its amount to the drawee. The objection should include the cheque number, amount, name of its drawer and every other particular that may assist the identification of cheque and the circumstances surrounding its loss or destruction.
The bank shall refrain from paying the amount of the cheque to its holder when it receives the objection and shall set aside the value of the cheque until the matter is settled. The bank shall, at the expense of the objecting party, publish the number of the lost or destroyed cheque, its amount, the name of its owner, the name of the objector and his address in a daily local newspaper issued in Arabic. Any disposal of the cheque after the date of this publication shall be null and void.
Lease agreement terms and conditions
Q: We are engaged in real estate business and have rented an apartment for two years with sub-lease rights. Now, one year has finished and we face difficulties to pay rent on time due to market conditions. We discussed on the termination of contract but the landlord is not agreeing to that. Can we file a case stating our difficulties to continue with contract and to terminate the same?
GH, Doha
A: The lease agreement is valid for two years with the set terms and conditions including the rent and no one may terminate the same unless otherwise than mutual agreement.
However, Article 632 of the civil laws of Qatar stipulates that in the event of serious unforeseen circumstances that arise in connection with either party which makes the continuation of the lease unduly burdensome to such party, the court may, on demand by such party and upon a comparison of the interests of both parties, terminate the lease and fairly indemnify the other party.
Selling shares to partners
Q: I hold 20% of shares in a company in Doha and there are some disputes with my foreign partner. Now I wish to sell the company shares I hold but the partner is not willing to purchase them for a reasonable consideration. Is it mandatory to sell the shares to the partners? Is it possible to sell shares to third party? Please advise.
OI, Doha
A: According to Article 238 of commercial Companies law, if any partner who intends to sell his share to any person other than partner of the company for consideration, he shall notify the other partners of the assignment terms through the company manager unless the Article of Association of the company stipulates otherwise. Upon receipt of such notice, the manager shall notify the partners. Each partner is entitled to request for the recovering of the share for its real price and on the same condition. In the event of disagreement over the price, the company’s auditor shall fix that price as on the recovery date. The said partner shall be free to dispose of his shares, if no partner requests recovery of the share after thirty days from the date of notification.
Calculation of leave wages
Q: I head the accounts department of a contracting company based in Doha. When we paid leave salary to one of our employees recently, he made a complaint, stating that his payment should be made on his total salary, including allowances, not on basic salary. The company considers only the basic pay for leave salary; transport and mobile allowances are not paid. Accommodation is provided by the company. As per the labour law, do we need to pay leave salary including all allowances ? Is it mandatory to pay salary before the employee’s leave starts?
VP, Doha
A: Basic wage is the basis for the calculation of sick leave benefits, leave wages, end of service gratuity. Allowances shall not form part of the basis for this calculation. Basic wage shall not include over-time, living and family allowances or any other periodic bonuses or remuneration, transport or travel allowance or any contribution by employer in any scheme set up for the benefit of workers.
The employer shall pay the worker the wage due and the leave wages before proceeding on annual vacation. Article 68 of the Qatar Labour Laws stipulates that the employer shall pay to the worker, before the worker takes his annual leave, the wages to which the worker is entitled for the work he has performed up to the date of taking the leave in addition to the leave wages to which the worker is entitled.
*Please send your questions by e-mail: leges@qatar.net.qa (Mobile:55813105)
LEGAL SYSTEM IN QATAR
According to Article 130, the general assembly shall be chaired by the chairman of the board, or by his deputy or by a person delegated by the board of directors for that purpose. If the mentioned persons failed to attend the meeting, the general assembly shall appoint among the members of the Board of Directors or the shareholders to preside over the meeting. If the general assembly discuss an issue related to the chairman of the meeting, it shall appoint a Chairman from among the shareholders.
The following conditions are mandatory for the general assembly meeting to be valid: (1) An invitation to the Ministry must be forwarded at least three days before the date of meeting to delegate a representative to attend the meeting; (2) Unless the Article of Association stipulate a higher percentage, the meeting should be attended by the shareholders representing at least 50% of the capital. If the quorum is not present, another meeting should be convened within fifteen days from the date of the first meeting after serving notice; and (3) the presence of company’s auditor.
As per Article 133, voting at the general assembly shall be held in the manner stipulated in the Articles of Association. Votes are polled through secret ballot if the resolution relates to election of board members or dismissal or initiating any legal action against board members or a request by the Chairman of the Board or a number of the shareholders that represent at least one tenth of those present in the meeting. The members of the Board shall not participate in voting for the general assembly resolutions related to their acquittal from responsibility.
The resolutions passed by the general assembly, in accordance with the provisions of law and the Article of Association shall be binding on all shareholders, irrespective of their attendance in the meeting or approval to those resolutions. The Board of Directors should execute the resolutions as soon as they are issued and notify the Ministry with a copy within fifteen days since their issuance.
According to Article 134, the minutes of the meeting shall be recorded in writing and shall include details of the shareholders present at the meeting or their representatives, the number of shares in their possession personally or by delegation, the number of votes assigned thereto, the resolutions passed, the number of supporting or dissenting votes and the summary of the meeting deliberations. The minutes of the general assembly meetings are recorded in a special register. A copy of the minutes of general assembly should be sent to concerned department within a period of one month from the date of meeting.
As per Article 136, without prejudice to the rights of bona fide third parties, any resolution issued in violation to the provisions of this Law or the Article of Association shall be null and void.
Any resolution, made in favour of or causing damage to, a particular group of the shareholders or that may afford a special privilege to the Board members or any other person regardless of interest of the company shall be abrogated. In the event of abrogation of a resolution, such resolution shall be deemed not existing with regard to all the shareholders. Board of Directors should publish the abrogation of resolution in two local daily Newspapers, of which one shall be in Arabic language, and on the website of the company, if any.
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