Legal Updates

A special manager in a liquidation proceeding may interrogate officers as long as it is not for the purpose of a future lawsuit on its behalf

February 24, 2019

Special managers of an Othman association in liquidation summoned the association's CEO to an interrogation, but he contested the summons contending that the whole purpose of the interrogation was to collect evidence in order to establish a lawsuit against him.
The Supreme Court approved the summoning of the CEO for interrogation. One of the purposes of the liquidation process is to investigate the corporation's business and the events that led to its collapse, in order to locate its assets and realize its rights. Officers appointed by the Court of liquidation are empowered to summon officers to interrogation, provided that it is not in order to obtain an improper procedural advantage in an existing or future claim that there is a high level of certainty that it will be filed in the future – something that was not proven in this case.