The Shareholder Of The Right To Exit From The Joint-Stock Company Upon Its Merger (A Comparative Study In Iraqi And Egyptian Law)

Abstract

The right to freedom is one of the most important and inherent rights of a human being. The importance of this right becomes clear when a person wants to do something, whether this work is a civil work or a commercial work. If he wants to practice a specific commercial work, such as his participation in a company, such as a joint-stock company, for example, we find him choosing this. He works with his freedom and will, so this participation is not considered a confinement to him. On the contrary, this company is keen to give the shareholder the freedom to enter and leave it, as this advantage is considered one of the most important advantages that these companies enjoy. Because the goal of these companies is a financial goal and not a personal goal, in other words, the capital is the goal that these companies seek, not the person of the shareholder, and therefore the shareholder’s exit from them does not affect their survival and sustainability. Accordingly, the shareholder has the right to leave the company, especially if he does not wish to remain in it in the event that the company takes another path to maintain its existence and continuity, including merging with other companies. Therefore, most legislation, including comparative Egyptian legislation, grants the shareholder the right to leave the company upon its merger and obtain his shares in different ways. Legal and agreement, while there is no text in Iraqi legislation that allows the shareholder to leave the company in this case.

The research concluded with a statement of the legal regulation of the merger of joint-stock companies, and the effects of this merger, the most prominent of which is protecting the rights of the shareholders of these companies, such as granting them the right to object to the merger decision, which was stipulated by Iraqi and Egyptian legislators, and the right of the objector to leave the company in the event that he does not wish to remain in the company. When they were merged, as stipulated by the Egyptian legislator, the research reached some results and recommendations.