Four fiends (Ahmad, Ali, Salim and Mahmood) established a Joint-Liable Company. The following box contains part of the contract of the company. Read the contents of the box and answer the questions.

The company is established to work in construction.

The name of the company is (the diamond for construction and building materials)

Ahmad will introduce (OMR 50.000). Ali will introduce (OMR 50.000). Salim will introduce a building to be a headquarter to the company. The value of this building is (OMR 50.000). Because Mahmood is a civil engineer, he will introduce his knowledge and experience in civil engineering as a share.

The profit is distributed according to the percentage of the partners in the capital of the company.
The period of the company is five years. After that, the company terminates.

The partners are liable jointly and personally toward the creditors of the company.

If one of the partners wants to waive his share to a foreigner person, two of the other partners must agree.

Each partner has right to check and inspect the commercial books of the company.

Mahmood will be the manager for the company.

Suppose that the company becomes a debtor and unable to pay its debts to the creditors. In this case, can the partners agree to terminate the company? Why?
After passing the period which is mentioned in the contract (the five years), can the partners extend this period? Explain.

The partners agreed that the profit will be distributed according to the percentage of the share of each partner in the capital of the company. But Mahmood does not have percentage in the capital because he introduced to service. Does that mean he will not get profit?

Answer rating: 100% (QA)

Solution JointLiable Company is a voluntarily association formed for the prupose of carrying on some business In this type of company members are jointly liable for debts of a company Four fiends Ahma... View the full answer