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02 December 2020

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Law No. 5 of 2002, promulgating the Law of Commercial Companies

Law Summary Record Type: LawNumber: 5Date: 25/05/2002 Corresponding to 14/03/1423 HijriNumber of Articles: 348Status: In force

Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 03/08/2002 Corresponding to 25/05/1423 HijriPage from: 17

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Article 324
Starting Date: 02/10/2002

Without prejudicing to any severer punishment stipulated in any other law, imprisonment not exceeding two years and a fine of not less than ten thousand and no more than one hundred thousand Qatari Riyals, or either of these two punishments, shall be given to:

Any person who wilfully enters into documents of shares or debentures or negotiable instruments false information or information that is inconsistent with the provisions of this Law and any person who knowingly signs any such documents.
Any founder who knowingly includes in the Memorandum of Association of limited liability company false information related to the distribution of shares or stocks among partners or related to the payment of their value.
Any person who, mala fide evaluates shares in kind submitted by the partners at more than their actual value.
Every founder or manager who invites the public for subscription in the stocks or shares of company other than shareholding companies or partnerships with shares, and any person who offers such documents on behalf of the company.
Any person who, mala fide, distributes profits or dividends or interests in a manner inconsistent with the provisions of this Law or with the company Memorandum of Association and any Auditor, who, mala fide, while knowing their inconsistency, approves such distribution.
Any auditor or any person who works in his office who deliberately makes a false report on the result of his auditing or who willfully conceals substantial facts in the report which should be presented to the general assembly pursuant to provisions of this Law or if he trades in shares belonging to the company whose auditing he is responsible for or if he divulges the company secrets.
Any liquidator who deliberately causes damage to the company or partners or creditors.
Any public official who divulges a secret which he obtains or if he willfully enters false information in his reports or wilfully conceals facts that affect the result of these reports.
Any person who forges in the company records or willfully enters false information or prepared reports presented before the general assembly that includes false statements which affect the assembly resolutions.
Any manager, manager, member of the Board of Directors or employee thereof who divulges company secrets or willfully attempts to cause damage to company activity or if he has a direct or indirect interest with any authority to conduct operations which cause an effect on prices of stock or negotiable instruments issued by the company.
Any other contravention of the provisions of this Law.