Commercial and Corporate Law
Commercial and Corporate Law tests commercial acts, trader status, company formation, governance and insolvency. The West Bank applies the Jordanian Commercial Law No. 12 of 1966 and companies legislation; Gaza follows Egyptian-based commercial rules, with Palestinian amendments. The exam expects you to separate civil from commercial obligations and to apply registration formalities.
Core rules
- Trader status depends on habitual professional commercial activity; commercial acts include supply, agency, brokerage and banking.
- Companies acquire legal personality on registration. LLCs and public shareholding companies have capital, governance and disclosure rules.
- Directors owe loyalty and care; self-dealing requires approval and disclosure. Shareholders may challenge invalid resolutions.
- Bankruptcy and insolvency prioritise creditors and require court supervision.
Worked example
An LLC director signs a supply contract with a company owned by his brother without board approval. The company discovers the conflict and refuses to pay. The director must disclose the interest and obtain approval. If he failed, the transaction may be challenged and he may be liable for the company's loss. The supplier's good faith matters, but the director cannot hide behind the company.
Traps
Confusing a civil partnership with a registered company; missing commercial-register formalities; assuming limited liability protects directors from personal fraud; ignoring shareholder approval rules.