The legal regulation of commercial company groups in the Libyan Commercial Activity Law No. (23 of 2010) (A descriptive analytical study)

Abstract

This study examines the Legal Regulation of Commercial Company Associations Under the Libyan Commercial Activity Law. It is a descriptive-analytical study aimed at analyzing the elements and nature of company associations under the Libyan Commercial Activity Law, attempting to understand the legal relationships between companies, determining their responsibilities toward one another, and their collective liability toward third parties. This is achieved by reviewing the essence of company associations by defining them and outlining their legal characteristics, distinguishing them from other similar systems, clarifying their legal nature, and specifying the provisions that regulate such associations according to the Libyan Commerial Activity Law. This study concluded that a joint venture agreement is one of the named contracts in the Libyan commercial Activity Law, which the legislator regulated in Articles from 312 to 315. It represents a temporary agreement in which companies come together to complete one or more specific operations while retaining their independent legal personalities, without any merger or amalgamation of these companies. In some provisions regarding the joint venture, the commercial legislator referred to the legal rules governing a partnership company, particularly in organizing the joint venture’s relationship with third parties. The study concluded the necessity of conducting in-depth research on the subject of corporate conglomerates, especially competitive studies with other systems to achieve maximum benefit. It also concluded the necessity of making legislative amendments to establish more detailed regulations addressing all regulatory aspects, regarding management, and the distribution of responsibilities among its parties, as well as enacting legal provisions that clearly govern the legal relationship between the parties of the conglomerate and the relationship of the conglomerate with other, while avoiding reference to the provisions of the partnership company.