The legal merger of the companies entails the removal of the legal personality of the merged company. All the rights and obligations of the merged company are transferred to the acquiring company according to the provisions of Article (238) of the Jordanian Companies Law. While the legal requirements mentioned in the said article include the continuity of leases, the Jordanian judiciary, represented by the Court of Cassation, has ruled that leases do not devolve to the merging company of according to Article 5 (c-3) of the Landlords and Tenants Law. Hence, this article examines the question of whether leases should be part of the general succession under Article 238 of the Companies Law despite the provisions of the Landlords and Tenants Law, a question that has not been examined by the courts. The article concludes that an explicit reference to succession to leases should be introduced in Article 238.
Publishing Year
2019