Companies Law

1. If a partner or shareholder in a professional company temporarily loses his professional license, he shall immediately cease to work at the company until the license is restored. If he is the sole practitioner of such profession among partners or shareholders, or if he is the sole owner of the professional company, the company shall cease to practice the profession until the license is restored. If such cases occur in a professional company owned by more than one person, the company’s articles of incorporation or articles of association shall specify the manner of distributing the company’s profits or losses. 2. If a partner or shareholder in a professional company permanently loses his professional license, he shall be deemed to have withdrawn from the company, unless the company’s articles of incorporation or articles of association provide for his continuation as an unlicensed partner or shareholder, subject to the terms, conditions, and rules referred to in Article 200(4) of this Law. 3. A professional company shall cease to practice its profession if a partner or shareholder in such company who is the sole practitioner of said profession from among the partners or shareholders permanently loses his professional license or the company is solely owned thereby; or if the sole practitioner of said profession dies or assigns his interests or shares. In such case, the company shall be granted a grace period of six months to rectify the situation in accordance with the provisions of this Law. The Minister may extend said period for a similar period if he deems it in the interest of the company. The company shall terminate upon the lapse of said period without rectifying the situation. Companies Law