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QUESTION: I was working as a manager with a contracting company in which I hold 34% of shares. My partners were working with other local firms and I was managing the company. I have left the managerial post because of some personal issues. Is it mandatory to hold shares in a company to be its manager in official records? Maintaining my position as manager, is it possible to appoint more managers?
UJ, Doha
ANSWER: According to relevant provisions of the Commercial Companies Law, the limited liability company shall be managed by one manager or more which shall be selected from the partners or otherwise.
Managers shall be appointed in the Articles of Association of the company or in a separate contract for specific period or without limitation. There is no such restriction to appoint a non-partner as the manager and to appoint more than one manager as per the law.
Any resolution made to appoint or replace the manager shall not be effective against others unless it is registered in the commercial register.
Complaints about products
Q: We have been supplying products to an MEP company in Qatar and until recently, it hasn’t raised any complaints on them. The MEP company has now merged with another firm and the manager in charge has also been changed. The new manager has made many queries on the supplied materials and related things. Now he has issued a notice that the materials supplied by us have to be replaced as they don’t meet the requirements. We had been supplying these products for many years and the old manager had approved previously supplied items. If the contract does not provide any specification, what is the law?
VN, Doha
A: According to Article 684 of the Civil law, if the contractor provides all or any of the materials, such materials shall be with the agreed specifications or shall be adequate for meeting the intended purpose. When the contract is silent on specifications, the contractor must use standard materials set by current practice.
End-of-service entitlements
Q: Our company shares have been sold to another partner because of financial issues and the new owner has terminated many employees without paying any benefits, asking them to approach their former employee for them. Shall we approach the Labour Department for due entitlements? Whether the new partner is liable to pay the benefits or not? Some of the employees were terminated under Article 61 of the Labour Law to get exemption from paying the end-of-service benefits. Do we have any chance to initiate legal action on such termination?
EW, Doha
A: According to Article 52, the employment contract shall not terminate on transfer of ownership of the company/employer. The new owner shall be jointly liable with the former employer for payment of the employee’s entitlements. The aggrieved employees can approach the labour department for their benefits.
An employer may take an action against his employee based on Article 61. But in all cases, the employee shall be entitled to have resort to the Labour Department and the court if he feels the action was unfair.
Lease contractextension
Q: My lease contract ended on July 31 this year and we continue to stay on the premises. We had informed the landlord on our willingness to renew the contract and he did not make any objection at that time. He has now issued a notice stating that our contract is no longer valid, asking us to vacate the premises within a week. Is our contract legal or not? Do I have the legal right to stay on the premises?
OS, Doha
A: The lease is valid. According to Article 626 of the civil laws, even after the expiry of the lease, the lessee continues to enjoy the leased property to the knowledge of and without objection on the part of the landlord, the lease is deemed to be renewed upon the same conditions but for an indefinite duration. The landlord is not allowed to evict the lessee from the premises before the contract expires as long as the lessee is paying the rent without due.
Power of attorney
Q: I have issued a power of attorney without any power for the attorney to appoint a third party. In any event, can this attorney appoint another?
AS, Doha
A: Article 89 of the Civil Laws stipulates that an attorney may not appoint a third party to act on his behalf unless the law or agreement permit such appointment.
*Please send your questions by e-mail to: leges@qatar.net.qa
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