Société Civile d’Avocats Taouti et Meguerba
Quarterly Newsletter Issue 02 May 2011
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Contents Leader From Desk
Algerian Law
Public procurements
Labor law (Internal Settlement) Foreign Law
Business & CSR
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Leader This second issue shows our determination to continue publishing a newsletter in three languages (Arabic, English and French), but it will be issued separately. But since its Content is king, and that we don't sell some « stuff », and that our readers aren't looking to buying anything from Us, we offer to our readers relevant information about our other customers' activities, and, most importantly, to provide information that could lead to solutions and speak directly to the specific reader. However, as a multiservice law firm our clients are from different sectors or markets such as energy and mining, electronics, industry buildings, Food industry, real estate promotion, banking, etc. Therefore, the content of our newsletter had to address in every issue solution for a specific audience, or give some practical information about one or two niches, or inform on a specific position to one of these sectors. Ibrahim Taouti From our Desk Pro Bono Activities As part of its Pro Bono activities (for the public good), and in its significant advocacy efforts calling for enhanced national thinking and action on the human rights of older persons, Lawhouse supported the Seniors’ Association of Algiers, which organized under the chairmanship of our colleague Sir Abderrahmane Ouhachi, and the patronage of the Minister Responsible for the Family and Status of Women, Saadia Nouara Ja'far, at the place-room graciously loaned for this purpose by the Algerian Olympic Committee headed by Mr Rashid Hanafi, a commemorative meeting devoted to the international day for Seniors. Various stakeholders were present, like Dr. Mohamed Lamari, chairman of the Committee on Medical Ethics Faculty of Medicine in Algiers. Nowadays, Algeria has 3.5 million seniors (10% of the population). This number is increasing at an unprecedented pace given the extension of life expectancy, and this proportion will rise to 22 per cent by 2050. Unfortunately the increase in numbers has also shed light on the lack of adequate protection mechanisms, and on the existing gaps in programs to address the situation of older persons. Today, Act on older people voted in December 2010 is still waiting for implementing rules. Algerian Law Algerian law is characterized by statutes and codification which is the quasi systematic collection of rules into official compilations, such as civil or commercial codes. But many laws are out of codes. Nevertheless, trough the bilingual publication (Arabic and French) in the Official Gazette, Algerian legislation and regulation become accessible and easy to comprehend. Thus, reading the Official Journal allows each entrepreneur or consumer to discover and learn the rules. Legal certainty that ensues is a major advantage for citizens, enabling them to anticipate the outcome of litigation and to assess the financial risks of legal action. _______________ Official Gazette Twelve (12) Orders has been published on the Official Gazette of 20 April 2011 (O.G. No. 24) to clarify the rules for public procurement. Three Orders (of March 23, 2011) are intended to designate members of the National Commissions of three types of public procurements (1) Studies and Services (2) Supplies and (3) Work. And nine other Orders (of March 28, 2011) are intended to define the margins of preference granted to Algerian supply products as well as Algerian companies, the procedures to formation and operation of groups of public orders, registration and removal from the list of banned operators from bidding, the patterns of exclusion, the forms of investment commitment and of letter to submit, the declarations to sign and for integrity and, finally, the modalities to direct payment to subcontractors. For your information, the last Code of Public Procurement (Presidential Decree of October 7, 2010) applies only to markets and expenditure items financed partially or totally by the State budget. It aims to increase the participation and competitivity of domestic suppliers and providers in the public tender process. The new rules contains anti-corruption provisions, and firstly and notably, the increase from 15 to 25% of the maximum preference margin to the domestic firms with a capital held in majority by Algerian or to the Algerian member of a group of enterprises and to local products and services for public tenders bids. Secondly, its Article 24 clarify the obligation to include a mandatory commitment of the foreign bidder « to invest in a partnership, in the same field of activity, with an Algerian company, whose capital is held principally by Algerian residents ». This commitment must be included in the offer to not be rejected. Judicial Algerian Precedents Labor Law Since 2004 the Social Chamber of the Algerian Supreme Court has ruled (Court ruling No. 254071) that the Internal Settlement (Règlement intérieur) cannot be implemented (or amended) unless it : 1) is communicated to the Labor' inspection, and 2) is filed in the Labor Court of territorial jurisdiction. Such decision shows that the Algerian structure of Labor Laws is determined by both legal and social norms, which are either general or special (collective agreements, internal regulations). But the list of goals and content of different standards in labor law reveals a complex and hierarchical structure where the labor courts play an important role. If your company has Internal Settlement already bearing the stamp of the Labor Inspector, you should file a copy to the court to make it applicable. Foreign Law Western Countries The Future of the Bar suggests greater competition, change, and opportunities for law firms, that must following to national and international standards on Legal Services to introduce new practices such as offshore legal outsourcing. 2011 is not just a new year, it's the second decade of the 21st century in which the legal world might be turned upside down. Along with other factors, offshore legal outsourcing is likely to continue to be among the leaders of the law revolution. In the new, client-centric legal world, legal services providers can no longer rely on privileged positions. Lawyers and law firms must deliver value. That's to insure a high-quality that offshore legal outsourcing is all about. This is the first reason why this process is likely to continue to boom throughout the new decade. France A new arbitration decree (No. 2011-48 of January 13, 2011), which came into force on 1st May 2011 aims to bring Paris up to speed with other rival seats. Geneva, for example, offers more stability (political and economic), neutrality, simplicity (only one recourse to the Federal Court instead of two in France: appeal court and Court of cassation), and the number of international referees (highest number in the World). And, despite the overarching influence of common law, modern arbitration owes much to the influence of civil law. Business LG Electronics has decided last summer to set up its first-ever European research and development center in Poland. LGE chose Wroclaw over London. The role of this center is to adapt LG's product range to the European market. There will be a particular focus on televisions, refrigerators and washing machines. It would employ around 300 researchers and engineers. The Center would run within 2015. BP agrees to $1 billion settlement with Moex [USA]: Moex…one of BP's minority partners in the blown-out Deepwater Horizon well, has agreed to pay the British oil company $1.065 billion to settle all claims between the companies over the accident in the Gulf of Mexico. BP said…that it would continue to pursue its other minority partner, Anadarko, the rig operator Transocean and cement contractor Halliburton to pay their share of billions of dollars in cleanup costs, oil-spill damages and pollution fines. BP Chief Executive Bob Dudley said…"MOEX is the first company to join BP in helping to meet our shared responsibilities in the Gulf, and Mitsui, through MOEX USA…is showing great corporate citizenship in standing behind its affiliate and making a contribution to meet the costs of this tragic accident". Source: Associated Press, 20 May 2011 |