Shareholder & Partnership Disputes

Under the Jordanian Companies Law No. 22 of 1997, every partner has the right to inspect the company's books and records (Art. 24), to receive their proportional share of profits, to seek the removal of an authorised manager who exceeds their authority (Art. 20), and to petition the court to expel a partner (Art. 23) or to dissolve the company on grounds such as continuous breach or substantial damage (Arts. 32-34).

A business partner may be removed only by court order under Article 23 of the Jordanian Companies Law, upon petition by any other partner demonstrating grounds such as continuous breach of contract, competing with the company without written consent of all partners (Art. 21), or conduct that makes continuation of the partnership impossible.

A Jordanian LLC may be dissolved by mutual agreement, expiry of its term, achievement of its object, bankruptcy, reduction to a single partner, or by court order under Articles 32-34 of the Companies Law. Where accumulated losses reach 75% of paid-up capital, the company must be liquidated unless the general assembly resolves at an extraordinary meeting to recapitalise by at least half the losses (Art. 75). A court-appointed liquidator may be requested if the partners cannot agree.

Yes. A partner who misappropriates company funds, competes in breach of Article 21, or makes unauthorised decisions may be sued both civilly (for damages and profit disgorgement) and criminally (for breach of trust under Article 422 of the Penal Code). An interim injunction or freezing order may be sought to preserve company assets pending final judgment.

Yes. If the partnership or shareholders' agreement contains an arbitration clause, disputes are arbitrated under the Jordanian Arbitration Law No. 31 of 2001, which follows UNCITRAL Model Law principles. Court-annexed mediation is also available under the Mediation Law No. 12 of 2006, and mediated settlements are enforceable as reconciliation contracts.