Companies Law

1. A company may be converted to another form of company pursuant to a decision issued in accordance with the conditions prescribed for amending the company’s articles of incorporation or articles of association, and after it meets the conditions of incorporation, registration, and publication prescribed for the form of company into which it is converted. 2. The conversion of a company into a simplified joint-stock company requires the unanimous approval of the partners or shareholders. 3. Owners of sole proprietorships may transfer the assets of such proprietorships to any form of company incorporated in accordance with the provisions of this Law. The incorporation shall not entail relieving the owners from liability for the debts and obligations of the sole proprietorships incurred prior to the incorporation of the company, unless the creditors explicitly agree thereto. 4. Without prejudice to the right of a company to convert pursuant to paragraph (1) of this Article and to the conditions of incorporation, registration, and publication of a joint-stock company, a general partnership, limited partnership, and limited liability company may be converted into a joint-stock company if requested by the partners owning more than half of the capital unless the articles of incorporation provide for a lower percentage, provided that all of the company’s interests are owned by persons related by consanguinity or affinity, or include interests owned by an endowment or interests arising from a partner’s bequest. Any condition in violation of this paragraph shall be deemed null and void.