Law No. (36) of 2012 on property and asset management of certain persons

Law No. (36) of 2012

on asset and property management of certain persons

The Interim National Transitional Council

Upon review of:

• The Victory Statement of the 17 February Revolution issued on 22 February 2011;
• The Constitutional Declaration issued on 3 August 2011;
• The internal regulation of the National Transitional Council;
• The bylaws of the National Transitional Council’s activities;
• Public interest considerations;
• Deliberations of the National Transitional Council session held on Wednesday 02/05/2012;

issued the following law:

Article (1)

The assets and properties of the persons listed in the table attached herein, as well as the assets and properties of the spouses and children of the natural persons thereof, shall be placed under the control of a General Receiver.

Other assets or properties may be included in the abovementioned table by a Cabinet decree if deemed in need to be placed in receivership.

Certain persons living abroad may be added to the same table.

Article (2)

At the proposal of the Minister of Justice, the General Receiver shall be appointed by a Cabinet decree and shall have the grade of a court of appeals counsellor. The Receiver shall act on behalf of the persons referred to hereinafter for the management of their assets and properties or of assets and properties for which they hold actual management power, depending on their share of capital, or those in which they possess stock, bonds, shares or stakes regardless of the percentage thereof. A Cabinet decree may be issued to appoint private receivers entrusted with the management of some of the aforementioned assets and properties. In this regard, private receivers shall enjoy the same rights bestowed upon general receivers in accordance with the provisions of this law and within the limits determined by a decision of the Minister of Justice.

The General Receiver shall have the right to direct, oversee, and control the private receivers’ exercise of their duties.

Article (3)

The General Receiver shall be in charge of receiving, inventorying and managing the assets. In particular, he shall be entitled to take all necessary measures to collect the amounts due to the persons whose assets and properties are governed by the provisions of this law or any rights added in the future, to pay their debts and cash their dues, to provide quittances, and to sell perishable items thereof, whether totally or partially, or sell assets with high maintenance costs. With regard to industrial or commercial business, the General Receiver may engage in all aspects of normal work practice. He shall have the right to settle or waive all debts or part thereof, and to litigate in the name of the persons governed by this law in his capacity as their deputy.

Article (4)

With the written authorisation of the Minister of Justice, the General Receiver may sell assets and properties and liquidate industrial or commercial business. In particular, he may request the dissolution or liquidation of any company, or approve such dissolution.

Article (5)

Upon the approval of the Minister of Justice, the General Receiver shall appoint the necessary employees and delegates to assist in managing the assets and properties referred to in Article (1) of this law or those added in the future, whether by delegation or secondment of civil servants with practical experience in this field, with the consent of their respective entities.

Article (6)

It is prohibited to enter into any contracts, transactions or commercial operations, be they financial or otherwise, whether personally or by mediation, with or for the benefit of any of the persons whose assets are placed in receivership in accordance with this law, except through the General Receiver.

Article (7)

Without prejudice to the provisions of Article (12) of this law, any transaction conducted from 1 February 2011 up to date of entry into force of this law concerning the assets or properties owned by the persons subject to the provisions of this law, whether such transaction involves the concealment or smuggling of assets and properties, or aims to achieve an illegal personal financial gain, or contravenes the relevant legislation in force, shall be null and void and shall not be contested before any entity in Libya.

Article (8)

None of the persons referred to in Article (1) may initiate a civil or commercial action before any judicial authority in Libya, or proceed with any action heard before the said authority, if such action concerns the assets in receivership.

Article (9)

Obligations arising out of a contract, transaction or process conducted for the benefit of one of the persons referred to in Article (1) prior to the entry into force of this law or to the decision placing the assets in receivership, may only be executed with the consent of the General Receiver and the written authorisation of the Minister of Justice. No contract, process, or transaction conducted in violation of Article (7) of this law may be executed.

Article (10)

Every natural or legal person in Libya or abroad, be it a manager, supervisor, bailee or possessor of movable or immovable assets or of rights owned personally or by mediation by the persons subject to the provisions of this law, or a creditor or debtor thereto of any amounts or rights regardless of their nature, shall submit to the General Receiver a true and complete account of such rights and assets, supported by related papers and documents, on the dates and in the manner prescribed by the decision of the Minister of Justice.

Article (11)

All natural or legal persons shall provide a satisfactory statement of every conveyance, usufruct, or right of use agreement concerning any movable or immovable assets, or any assignment agreement regardless of the nature of the transferred rights, or any agreement that entails modification of any civil or commercial enterprise or of the partners’ position among each other if a person subject to this law is a party thereof. Such statement shall be submitted on the dates and subject to the terms and conditions specified by the Minister of Justice.

Article (12)

The Minister of Justice may decide to disregard the agreements for which a statement shall be submitted in accordance with the provisions of Article (10), if the statement is not submitted on the specified date or if the statement is incorrect.

The Minister may decide to disregard agreements of unspecified date or those issued prior to the Cabinet decrees mentioned in Article (1), Paragraphs (2) and (3) of this law, if firm reasons exist for questioning the validity thereof.

The Minister may also refuse to approve any conveyance agreement concluded as a donation or any commutative contract that contributes to hiding such assets from receivership, regardless of the date of conclusion of such agreement or contract.

Article (13)

Concerned parties may appeal the decisions issued by the Minister of Justice as prescribed by the provisions of the previous article before competent courts within sixty days from their notification of the decision subject to appeal.

Article (14)

All persons referred to in Article (1) of this law, and all occupants or holders of assets and properties subject to the provisions of this law shall hand over such assets and properties to the General Receiver. Persons referred to in Article (10) shall hand over to the General Receiver all movable and immovable assets and all documents in support of the rights described in the statements submitted thereto, and shall allow the General Receiver to take charge of the same. The General Receiver shall determine the dates, procedures and methods of delivery of the assets, properties and documents.

Article (15)

The General Receiver may terminate lease contracts of any person living abroad whose assets are in receivership, without prior notice or indemnification for the termination of the contract before the expiration thereof.

Article (16)

The Minister of Justice may determine a monthly allowance for the family of the person whose assets are in receivership, to be deducted from this person’s assets commensurate with the average income in society.

Article (17)

The provisions of this law shall not be applicable to:

Salaries, wages, or the equivalent thereof, and retirement pensions that are paid to persons referred to in Article (1) of this law.

Article (18)

The specified remunerations or salaries of the General Receiver, subordinates thereof and private receivers, as well as the expenses of asset management shall be deducted from the revenues of the assets and properties in receivership according to a percentage determined by the Minister of Justice. The Minister shall also determine the value of such remunerations, salaries, and expenses and the disbursement conditions thereof.

Article (19)

The General Receiver and his subordinate receivers shall submit to the Minister of Justice a report on their management of the assets and properties in receivership within one month from the date of assuming their duties in order to be examined and approved by the Audit Office.

Article (20)

The General Receiver, subordinate receivers thereof, and the employees and delegates referred to in Article (5) and determined by the Minister of Justice shall have the capacity of judicial officers with regard to the implementation of the provisions of this law.

Article (21)

Managers of banks, companies, commercial and industrial enterprises and other public or private entities shall provide the General Receiver, his subordinate employees and delegates as well as private receivers upon request all data concerning the accounts, deposits, and assets of persons referred to in Article (1) and the books or other papers related to such accounts, deposits, or assets.

Article (22)

Persons in charge of the management of assets and properties subject to the provisions of this law, or those in possession thereof, shall continue to manage the same until transfer thereof to the General Receiver.

Article (23)

Penalties

Without prejudice to any harsher penalty stipulated by other laws, any person who violates the provisions of Articles (6), (7), (9), (10), (11), (14) of this law shall be punished by imprisonment for a minimum period of two years and by a fine of fifty thousand dinars at most.

The same penalty shall be imposed on any debtor or creditor who submits an inaccurate statement with the intention of smuggling payable rights or assets. In addition to the aforementioned, the court shall decide to submit to the General Receiver all assets, papers and documents that should be delivered or for which a statement should be submitted.

Any violation of the provisions of Articles (21) and (22) of this law shall be punished by imprisonment for a maximum period of two years and a fine of at least thirty thousand dinars.

Article (24)

Any provision contrary to the provisions of this law shall be repealed.

Article (25)

This law shall enter into force from its date of issuance and shall be published in the Official Gazette and the media.

Interim National Transitional Council – Libya

Tripoli

Monday 11 Jumada al-Thani 1433 AH

Corresponding to 02/05/2012 AD

Attached Table of Law No. (36) of 2012

on asset and property management of certain persons