Article 43 of Companies Law

The creditors of a partner in respect of a personal debt may not attach the company’s assets; rather, he may attach his debtor’s interest. If a partner’s creditor initiates enforcement proceedings against his debtor’s interest, he may agree with the debtor and the company on the method and terms of sale. In this case, the interests shall be transferred in accordance with the provisions set out in Article 40 of this Law. If no agreement on the method of sale is reached within fifteen days from the date of attachment, the interest must be offered for sale at public auction in accordance with the procedures prescribed in the Civil and Commercial Procedure Law. The reserve price shall be determined after valuation of the interest in accordance with the first paragraph of Article 11 of this Law. Except for the partner whose interests have been attached, the sales judge shall grant the partners three days to express their objection to the person who submitted the highest bid joining the company. If none of the partners submits an objection within the said period, a judgment awarding the auction shall be issued, and the company’s memorandum of association shall be amended on the basis of the judgment awarding the auction. This amendment shall not be effective against third parties unless all registration procedures have been completed. The company or any of the partners may—even before a judgment awarding the auction is issued—pay the partner’s indebtedness to the attaching creditor. The company may also, within the said period, redeem—for the benefit of the partners or some of them—a portion of the attached interests sufficient to pay the creditor’s debt. If any of the partners objects to the successful bidder joining the company, and the company or the partners have not paid the attaching creditor’s debt or redeemed the interests in accordance with the provisions of the preceding paragraph, the sales judge shall issue a judgment dissolving and liquidating the company and appointing a liquidator. The judgment issued in this regard shall be subject to appeal in accordance with the law. Chapter Four Rights and Responsibilities of Management