On 14 May 2026, the Investment and Trade Court issued a judgment in a dispute between a number of partners and a company, ruling to accept the withdrawal of the partners represented by Al-Bidda Law Firm, while the company continues to exist among the remaining partners, and obligating it to pay the value of the withdrawing partners’ shares.
The dispute centered on reconciling the right of certain partners to end their association with the company and receive the financial consideration due for their shares, with preserving the continued existence of the commercial entity and ensuring that its continuity would not be affected by their departure. The firm’s team presented the clients’ legal position and submitted the documents relating to their ownership of the shares, their request to withdraw, and the financial consequences arising therefrom.
The court resolved the dispute by severing the relationship between the withdrawing partners and the company, without this resulting in the termination or dissolution of the company with respect to the remaining partners. It also gave effect to the financial consequences of the withdrawal, ruling that the company must pay the value of the shares of the partners whose request to exit was accepted.
This outcome is of practical importance in disputes involving family-owned and closely held companies where it may become impossible for certain partners to continue together, as it demonstrates that terminating the membership of one or more partners does not necessarily entail the demise of the company, provided the withdrawal can be arranged in a manner that safeguards the financial rights of those exiting and allows the remaining partners to carry on the business.
