Companies Law

1. In case of the death of a partner in a professional limited liability company or a shareholder in a professional joint-stock company or a professional simplified joint-stock company, his interests or shares, as the case may be, shall be transferred to his heirs, unless the company’s articles of incorporation or articles of association stipulate otherwise. 2. In case of the death of a partner in a professional general partnership, the company shall continue to exist, and his share shall be transferred to his heirs. The deceased partner’s interest shall be valuated by an accredited valuer, or more, who shall prepare a report indicating the fair value of each partner’s share in the company’s funds on the date of the partner’s death. The heirs shall not have a share in any subsequent rights, unless such rights arise from transactions made prior to the death of said partner. 3. It may be stipulated in the articles of incorporation of a professional general partnership or in a special agreement between the heirs of the deceased partner and the other partners in the company that the heirs of the deceased partner replace him as partners in the company by converting the company into a limited partnership, joint-stock company, simplified joint-stock company, or limited liability company. If the company is converted into a limited partnership, the heirs shall have the capacity of a limited partner. 4. In case of the death of a partner in a professional limited partnership, his interests shall be transferred to his heirs, unless the company’s articles of incorporation stipulate otherwise. If the heirs decide to participate in the company, they shall have the capacity of a limited partner.