Is it possible to appoint more than one manager in the company? Is it a must that the manager should be one of the partners?
We are setting up a Limited Liability Company (LLC) company and we have some queries in this regard: A) Is it possible to appoint more than one manager in the company? B) Is it a must that the manager should one of the partners? C) Is it possible to determine a certain period for the employment of such manager? If no period has been determined, what is the legal period for the manager’s employment in this event? D) Is 51 per cent for the local sponsor a must even if he is not the real partner?
Article No.235 of the Commercial Companies Law states the following: A limited liability company shall be managed by one manager or more [who] shall be selected from the partners or otherwise, provided that they shall not exceed five. Managers shall be appointed in the Memorandum of Association the company or in a separate contract for specific period or without limitation. Article No. 236 of the same law states that if a manager is appointed in a Memorandum of Association without limitation of a specific period, in such an event, such manager shall remain in the company for the duration of the company unless the Memorandum of Association provides for the possibility to remove the same. Finally, the requirement of 51 per cent of the company shares for the local sponsor is a must as per the law. Finally, after attesting the memorandum, I advise the questioner to sign a side agreement mentioning that the local sponsor is not the real partner.
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