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QUESTION: A bank in Qatar holds my signed blank cheque against a personal loan. My company has just terminated my services and I am unable to pay my debts. What action can the bank initiate if there are outstanding payments? My friend had a similar situation and the bank filed a criminal case. Suppose if I did not receive the notice to attend the court, what will happen?
VT, Doha
ANSWER: The bank may file a criminal complaint by virtue of the cheque deposited with the bank, and the case can be referred to the court in order to claim the outstanding amount.
According to Article 180 of the Qatar Criminal Procedure Code, if the defendant who has been duly summoned fails to appear before the court on the date specified in the notice or did not authorise an attorney to represent him where such representation is permissible, the court renders the judgment in his absence, after considering the documentation.
In the event the notice was delivered to him personally and the court finds no excuse for his non-attendance, the judgment is considered in attendance.
The transfer of employment
Q: A few years ago, I had transferred my visa to the company I now work with after receiving a good offer from it. But from July, I had not received any salary and the company management is asking me to leave. They will not grant no-objection certificate for sponsorship transfer. Can I have any legal right to get the NOC? What will be the effect if there is a legal dispute with the company?
KI, Doha
A: As per the prevailing laws and regulations, the transfer of employment or grant of no objection is at the sole discretion of the current employer and not as a matter of right of the employee. Qatar’s Labour Law does not provide any such right. Article 4 of the Entry and Exit Law prohibits the granting entry for work to one who earlier resided in the country to work only two years after the date of departure unless otherwise supported by written consent of the previous / current sponsor.
Under Article 12 of the Entry and Exit Law, appropriate authority may transfer sponsorship temporarily if there is a legal dispute between the sponsor and the expatriate worker. In all other cases, employer at its discretion should grant the same.
Defective goods
Q: We procured some items from a supplier and after some months we found them to be defective. We sent a notice to the supplier,asking for replacement of the defective items. Last week, we received a legal notice, stating that the supplier was not liable for the defects as per law and they mentioned Article 112 to substantiate their point.
FV, Doha
A: Under Article 112 of the Trading Regulation Law, the buyer shall notify the seller about the existence of the shortage or defect or lack of conformity within 15 days from the date of real delivery to him. However, parties may agree to lengthen or shorten this period or exempt the buyer from taking that period into account. If the buyer didn’t notify the same within the period specified, then his claim will be heard only if the defect or shortage or lack of sold item’s conformity with the specifications is not possible to be detected by the usual methods.
Go for amicable settlement
Q: Is it legal to terminate the employment contract without any reason? My company terminated my employment contract, paying all my entitlements. But my landlord doesn’t agree to terminate the lease contract and to return the cheques which I have given to him as advance rent. He wants two months’ rent as compensation for the termination. Is it viable to file a case for termination of this lease contract?
XE, Doha
A: As per Labour Law, an employment contract of indefinite duration is terminable by notice and no reasons to be established by either of the parties. Approaching the court for the termination of lease contract will be a time-consuming process and the court may also order to indemnify the landlord for the early termination of the contract. The contract is always the prevailing legal agreement between the contracted parties. Thus, no party can arbitrarily terminate the contract before the end of its term unless with the consent of other party. Hence amicable settlement will be ideal.
*Please send your questions by e-mail to: leges@qatar.net.qa
LEGAL SYSTEM IN QATAR
The increase in the company share capital is not permissible unless the value of the share capital has been paid in full.
As per Article 191, the share capital of the company may be increased by virtue of a resolution of the extraordinary General Assembly and after the approval of the Ministry. The resolution shall disclose the amount of increase and the issue price of the new shares. The extraordinary Assembly may authorise the Board of Directors to determine the date of implementation of this resolution, provided it shall not exceed one year from the date of issuance.
The capital amount will be increased by one of the following ways: (1) issuing new shares; (2) merging the reserve or a part of it or profits into the capital; (3) converting the bonds into shares; and (4) issuing new shares against non-monetary consideration in kind or assessed rights.
According to Article 193, the subscription in new shares shall be governed by the rules applicable to the subscription in original shares. The new shares shall be issued at a nominal value equal to the original share value. However, the Extraordinary General Assembly may approve a premium on nominal value of the share and determine the amount, subject to the approval by the Ministry. This share premium shall be added to the legal reserve. The shareholders have the right of priority to subscribe new shares.
As per Article 196, the Board of Directors shall publish a notice in two local newspapers, of which one shall be in Arabic language, and on the website of the company, if any, notifying the shareholders of their priority in subscription, its commencement and expiry date, and of the prices of the new shares.
The allocation of the shares to applicant shareholders shall be in accordance with the percentage of their existing shareholding, provided that it does not exceed their respective applications. The remaining shares shall be distributed among the shareholders who had applied for shares more than their shareholding percentage, and the remaining shares shall be offered for the public subscription or otherwise disposed of subject to the approval of department. If the capital increase includes contribution in kind, the provisions pertaining to the evaluation of shares in kind shall apply, provided that the Extraordinary General Assembly shall supersede the statutory general meeting.
According to Article 198, if new shares were offered for the public subscription, a subscription prospectus shall be issued which shall include the following: (1) the reasons for the increasing capital; (2) the resolution of the Extraordinary General Assembly concerning the increase of capital; (3) The Company’s capital at the time of issuing the new shares, the amount of the proposed increase, the number of new shares, and the share premium, if any; (4) the statement of contributions in kind or evaluated rights, if any; (5) A statement of the dividends distribution by the company during the past three years preceding the capital increase; and (6) the declaration of the auditor on the authenticity of the information included in the prospectus. The prospectus shall be signed by the Chairman of the Board and the auditor who shall be jointly responsible for the authenticity of the information included.
As per Article 199, in case of increasing the capital by capitalising the distributable reserves, the company shall issue bonus shares to shareholders in proportion to the number of shares each shareholder holds or by increasing the nominal value of share equal to the increase in the capital, provided that the shareholders shall not be liable to any financial burdens arising from such act.
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