‘Bar association to sue companies for not hiring legal advisers’

AMMAN — The Jordan Bar Association (JBA) will soon take legal action against companies that have not abided by the 2014 JBA Law which stipulates assigning lawyers as legal advisers, a JBA official said Thursday.

The amended law was endorsed on July 16, 2014 and went into effect three months later, JBA Vice President Rami Shawawreh told The Jordan Times, expecting the lawsuits to start in February or March next year.

The JBA addressed these companies to implement the amended law, but many of them have not committed to it, he said.

“The decision protects both companies and their clients, in addition to helping secure jobs for lawyers,” Shawawreh added.

He noted that the article was already listed in the 1985 JBA Law, but the 2014 version reduced companies’ capitals and, therefore, widened the included firms.

Article 43 of the JBA Law stipulates that public and private joint stock companies, limited liability firms with capitals higher than JD20,000, and foreign companies and their branches, agencies, representatives or regional offices, are required to hire legal advisers, Sharawreh explained.

“Companies and institutions registered at development or free zones, the Aqaba Special Economic Zone Authority or the Petra Development and Tourism Region Authority — regardless of their capitals — are also included,” the JBA official added.

Nonprofit entities and other types of companies with capitals of at least JD50,000 are also required to hire legal advisers, according to Shawawreh, who said that around 7,500 companies out of some 40,000 have adhered to the law.

“Around 2,500 lawyers have benefited from the amendment so far, and a lawyer can be the legal adviser for up to five companies at the same time,” he said.

Violating companies have to pay the JBA’s Company Fund JD5 for each day they did not hire a lawyer since October 16, 2014, the JBA vice president said, explaining that the lawsuits would be for fine-collection purposes.

Article 43 of the law also stipulates that the company or institution has to sign a contract with the lawyer and present written notification of the legal adviser’s name to the JBA within 60 days of the signing.