The stance of the Jordanian judiciary on the litigation of partners in a general partnership company

Abstract

The present study aims to shed a light on the stand of the Jordanian judiciary on the conflict between the general partners in the general partnership company. It sheds a light on the problematic issues related to Article (26) and Article (27) of the Jordanian Corporate Law. Article (26) acknowledges the general partnership state of the partners. It suggests that it’s permissible to have a conflict between those partners and terminate the company. However, it doesn’t permit taking actions on the assets of the parents before taking actions on the assets of the company. That contradicts the general partnership principle which suggests that the liability can’t be divided.  This problematic issue led to the emergence of several questions about the possibility of having a conflict between the partners without terminating the company. The decisions of the Jordanian Court of Cassation vary in this regard. In some decisions, the latter court permitted having a conflict between the partners without terminating the company. In other decisions, it didn’t permit that. The study found that the judicial judgment suggesting that it’s permissible to have a conflict between the partners without terminating the company can’t be actually implemented. That’s because it’s impossible to take actions on the partners’ assets before taking actions on the assets of the company which isn’t a party in the initial case. Thus, taking actions on the company’s assets isn’t permissible.  Thus, the researchers recommends amending Article (27) which allows the company’s creditors to terminate the company and have dispute with the partners jointly or separately provided that the company is notified first.