Dissolution of companies and partnerships: causes and effects in accordance with the legal environment in Kingdom of Saudi Arabia

Abstract

The term dissolution of the company refers to the expiration of the legal relationship between the partners, in different words the dissolution of the moral character of the company. Basically, commercial companies are established for the purpose of achieving the objective and the profits which are impossible for each partner to achieve alone, so partners work hardly to keep this company standing and ongoing practicing its commercial activities.in this paper focuses on the most prominent reasons for the expiry of commercial companies, whether partnerships or corporations, whether by the expiration of the definite-period of the company on the Saudi System for Companies. Also each company represents a person with a moral character who is entitled to legal capacity which enables it to acquire the rights and bear the liabilities the same as the natural person. The company is entitled to practice its activities with the assigned purposes of establishment and to conclude all legal acts including selling, purchasing, renting, leasing and whatsoever. Gaining the moral character capacity makes the company entitled to be plaintiff or defendant in case of disputes with other parties. Thus, in this scientific paper shall discuss the independent reasons which are entitled by the companies in its capacity as moral persons, moreover it can go beyond to other factors as well as being dependent by liability against other companies liabilities, and having a deputy to represent this company. It is also entitled to have the nationality of the country where its management office is located.