Solidarity professional companies

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Solidarity professional companies

Types

The new law defines the partnership company in a way that was not mentioned in the previous law, as it is a company between people of natural capacity in which they are personally responsible in all their money and jointly for the company’s debts and obligations, and the partner in it acquires the status of a merchant.

One of the advantages of the new system is that it allowed the exemption of the new partner from joint liability in previous debts if the partners agreed on that, and the agreement was declared by regular means. Article 20 also added a case that was not included in the previous system, which is if he is expelled from it by a final judgment from the competent judicial authority, so he is not responsible for the debts and obligations that arise in her debt after the month of his eviction.

Characteristics of Solidarity professional companies

The partnership company is characterized by a set of characteristics that differ in nature from the characteristics of other types of companies. These characteristics can be summarized as follows:

Advantages of Solidarity professional companies

Disadvantages of Solidarity professional companies