Requirements of Acquiring the Capacity of Merchant by Brokers in the Yemeni and Egyptian Laws: A Comparative Study

Abstract

A broker’s acquisition of the capacity of a merchant, whether natural or corporate, would place him in a legal status different from other people. The problem of this study is that many people engage in the business of brokerage without realizing the requirements of the legal status they get into, and without understanding the rules of this issue in their minds.  The study aimed to shed light on the requirements brokers should possess in order to acquire the capacity of a merchant as well as other matters pertaining to this issue. This issue was addressed within the framework of Yemeni and Egyptian legislations, supported by Fiqh opinions and judicial judgments where possible. The researcher used the descriptive, analytical and comparative method as per the research requirements. The study concluded that Yemeni Commercial Law (1991) considers brokerage a commercial business in all cases, regardless of the broker’s capacity or intention. Also, engaging and practicing the profession of brokerage independently by any person who has the commercial capacity would make the broker obtain the capacity of a merchant, whether be it commercial or civil brokerage. It was recommended to add a stipulation to the law which makes it obligatory for the broker to have a work permit so as to regulate the business of brokerage and ascertain the availability of requirements for becoming a broker and acquiring the capacity of a merchant.