Commercial Company’s Right for Establishing Companies - An analytical study -

Abstract

It is well known that people are free to establish commercial companies to achieve the goals they aim to achieve, including profit, but it must be noted that the right to establish companies is not limited to the natural person, but the legal person has the right to establish companies to achieve their purposes within the limits of the law, and if we take into account that commercial companies, in turn, are legal persons in themselves, so the question arises about the extent of the commercial company's right to establish another commercial company? Especially since the Iraqi legislator, in Article (12) of the amended Iraqi Companies Law, did not address the details of this right and the extent of its conflict with the purposes of establishing companies and the risks that arise from them. Therefore, this research aims to show the extent of the commercial company’s right to establish other commercial companies by accreditation on the analytical approach to the texts of the amended Iraqi Companies Law No.21 of 1997. The research found a conflict between the provision of Article (12/Second) of the amended Iraqi Companies Law with the provision of Articles (4) and (6) of the same law, and we made a set of recommendations in this area to remove the conflict.