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.
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:
This characteristic expresses the most important characteristic of joint venture companies, as by virtue of this characteristic, each partner acquires a personal responsibility, that is, he has his own person and not others, and a joint responsibility, meaning that each partner acts as a guarantor for the rest of the partners, not only with his share of the capital, but also with his own money if the need arises.
The nature of the role played by the joint partner represented in his entitlement to manage the company, guarantee debt guarantees, and so on, makes it imperative for him to acquire the status of a merchant. As a consequence, the bankruptcy of the joint partner is declared in the event of the company's bankruptcy, and the opposite is not true.
As previously mentioned, partnership in partnership companies is based on the natural personality of the partners, and this explains the nature of this partnership, which is often based on personal knowledge, and therefore the assignment of one of the partners to others may not satisfy the rest of the partners. However, it is permissible to agree from the beginning that one of the partners has the right to assign his share to specific people. Then the joint partner can assign his share to this partner in the light of this prior agreement, which was accepted by the rest of the partners.