Part Fifth: Sale of Shares and Securities

Article 937

Notwithstanding the special provisions of the Beirut Stock Exchange system, shares of any kind and negotiable securities shall be sold at public auction by the Beirut Execution Division. The other execution divisions shall send to this division the documents required to be sold by mail within sealed envelopes certified as to their value.

Article 938

It is permissible for the Head of the Execution Department, if the securities or shares put up for sale are of significance, to seek the assistance of one of the specialized personnel in the stock exchange or banks in some of the procedures threatened for the sale, and he must then decide what measures should be taken for the announcement procedures, while taking into account the legal provisions and regulations related to the sale in the stock exchange.

Article 939

The bailiff shall draw up a list containing a statement of the identity of the interested parties and their status, the type of right to be sold, its nominal and actual value, the instrument evidencing it, the securities and rights attached thereto, the designation of the opening bid price and the conditions of the auction. The execution officer shall invite the interested parties to examine the list and to state their observations or objections in a petition submitted to the bailiff to the head of the execution division within five days of their notification of the invitation, otherwise their right thereto shall be forfeited.

Article 940

The President of the Execution Department shall rule on the objections in accordance with the principles stipulated in Article 829, and he may postpone the sale for serious reasons.

Article 941

The head of the enforcement department sets a date for the sale, which is preceded by a publication and posting procedure in the same manner and within the time limits stipulated in Articles 924 to 927. If the sale is not conducted in accordance with the aforementioned conditions, the provisions of Article 931 shall apply.

Article 942

The auction shall be conducted publicly by the head of the execution division, who shall issue a final decision awarding the property sold to the highest bidder. An authentic copy of the decision for execution shall not be delivered to the purchaser except after the payment of the price and the fulfillment of the conditions of the sale.

Article 943

1. The President of the Execution Department may order the legal person issuing the original document to transfer it to the name of the buyer or to make it a bearer instrument, according to the latter's preference, unless the law or the regulation governing this document prohibits it.

Article 944

If the purchaser does not pay the price within ten days from the issuance of the award decision, the head of the execution division shall, upon the request of the bailiff or one of the interested parties, send him a notice to do so within three days. If he refuses to pay, the property shall be resold at his charge and it shall be stated in the announcements that the sale is conducted at the charge of the purchaser who refused to pay, and shall set forth the original price set for the opening bid and the price to which the first award was made. The final award decision must obligate the first purchaser to pay the difference in price together with the additional expenses incurred thereby. This purchaser shall not benefit from any increase in price.