Article 254 of Companies Law

For the conversion of a shareholding company that has borrowed by issuing bonds or sukuk, approval of the conversion resolution by the body of bondholders or sukuk holders is required, by a majority representing at least two-thirds of those bonds or sukuk. If the conversion or the settlement offered to it by the company is not approved by the aforementioned majority, or if it is impossible to convene this Law Index 1513 Home Page Companies Law Law No. 1 of 2016 Promulgating the Companies Law body, the representatives of the body of bondholders or sukuk holders must refer the matter to the Court of First Instance within thirty days from the date of publication of the conversion resolution. Bringing the action shall not suspend the conversion procedures. The court may rule to dismiss the objection, require the converting company to repay the value of the bonds or sukuk—in accordance with the terms of issue—or require the converting company to provide sufficient guarantees for payment of their value. Chapter Two Merger of Companies