المواجهة التشريعية لتصرفات الشركة تحت التصفية

Abstract EN

Article (179 / 2) of the amended Iraqi Corporation Law-(21) of the year (1997)-abolishes any transaction, assignment, or any other action for the fund of a corporation, which is being liquidated, if there is preference for certain creditors to others through the act of fraud.

This same article, in paragraph 3, also certifies the abolishment of all the bonds of mortgage or those that set a certain privilege on the corporation's fund and assets, and which (the two kinds of bonds) are made three months before the commencement of the corporation's liquidation process; that is unless the corporation is financially sound after the completion of the liquidation process.

This abolishment affects only what transcends the sum which was paid to the corporation, with the legal interests, in return for those bonds at the time they were created or after.

This paper will focus on the period of time, which is three months long, that precedes the liquidation process; the period which the legislator has set to make the abolishment includes the actions which have occurred during this period, and that are meant to arrange a privilege on the corporation's fund and assets.

This paper will attempt to answer a number of inquiries about this specific topic.

Among them are: can this period of time be considered as the 'Period of Doubt' during bankruptcy, and this is due to the resemblance between the prescribed rules for the actions of the former period with those ones for the actions that the bankrupt trader carries out during the 'Period of Doubt'? Then does this period of time come as a replacement for the Period of Doubt' that the commercial law has stipulated in the rules of bankruptcy, considering the latter law takes the place of the former one in what it regulates? Or is this period added to the 'Period of Doubt' so the longest period includes the shortest? And in which standards is it calculated? Rules of bankruptcy, however, affects the trader, whether individual or corporation; a thing that makes rules of bankruptcy and abolishment (compulsory or permissive) for the actions that occur during this period apply for the trader, again, whether individual or corporation.