Dividing the Common Money

It is allowed for partners on common – according to article No.831 of the Kuwaiti civil law – to agree on dividing the common Money by the way which seems appropriate. According to such agreement, popularity is passed away, and the share of each of the partners is sorted by kind in common Money, this agreement could be expressed, also it is permitted to be implicit by which is called actual division, as if one of the partners can act in a sorted part of common Money equals his share, then he is followed by other partners by same acts, having benefit from their agreement of dividing in the manner in which they acted, also, everyone’s share would be the sorted part they  previously acted with.

Dividing common Money by the Way of Setting Aside, or by the Way of Liquidation

If the partners didn’t agree on dividing common Money, then, it is permitted to any of them to resort to the court by dividing request, so whether if the common Money can be divided by in kind sorting, then, it should be determined the partners shares based on the minimum share, preparing to set the lottery between them, yet, if the Money seems not possible to be divided into small shares, or if such division results in harm to the partners, so, it should be sought the (set aside) method, then, every partner should grant a sorted part of Money or common Money equals his share, if the partners agreed to do this, or it’s impossible to make division based on the minimum share.

What if seems to the court that common Money can’t be divided by sort, or its dividing by sort could reduce its value to certain extent? Then, the court should convert dividing by sort to dividing by liquidation, by the adjudication of selling the Money through auction, by the method entitled in the procedural law of forced sale – and this leads to know that making division by the (set aside) method could not be sought unless common Money division by sort is available, or the partners agreed on setting aside.

Dividing the Revenue of Common Money While Being a Common Property

The article 1/819 of the Kuwaiti civil law stipulated that every partner has the right to make use of the common property and deal with it to the limit of his share, with regard to his partners’ rights, also the article No. 838 stipulated that the shared shall be considered – alone – an owner of the set aside share, whose been owed by dividing, while his ownership for it shall be exclusive of every right arranged by other partners, unless the right has been decided by consensus, or majority of the partners according to law, and the stipulation of the two articles that the yield resulted from common Money while popularity are considered a right of all partners by the percentage of each of them share, also, the partner on common has to retain his share benefit to the partners who lay hands on what exceed their share, each one according to his share of that increase.

The Partners’ Agreement on Adapter Partition for the Common Money Benefits

All of the partners on common – according to the stipulations of articles No.818, 843, 845, of Kuwaiti civil law – have the right to agree on dividing the benefits of the common Money as adapter, each one could make use of setting aside part for a certain period, yet, if they couldn’t make agreement on the adapter partition, then the court is allowed, according to any partner’s request, to order for it.

Besides, it was stipulated on the explanatory warrant, of the Kuwaiti civil law, that the adapter partition, whether spatial or temporal, doesn’t end the common property state, but organizing – in a special way – the availability of making use of common Money, and that leads to realizing that the adapter partition, even when extending its period, doesn’t lead to the ownership – of a partner on common – to the part which was set aside that the partner had it as a share, by being authorized with it.

If you are looking for a Kuwaiti law firm that specializes in providing legal services to the securities, capital and stock market activities, you can count on us at Taqneen, Law Firm and Legal Consultations.

To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).

Facebook
Twitter
LinkedIn
Telegram
Email
Print