IRAQ Law and Practice Contributed by: Ahmed Al-Janabi, MENA Associates in association with AMERELLER
10. Litigation 10.1 Frequency of Litigation
11. Activism 11.1 Shareholder Activism
Litigation in connection with M&A is very rare in Iraq. The share transfer process is direct and straightforward, which generally prevents dis - putes from escalating to court-level litigation. 10.2 Stage of Deal While litigation in M&A deals is rare in Iraq, when disputes do arise they typically occur at one of two stages. • Payment of consideration – litigation may occur if there are issues in fulfilling the pay - ment obligations outlined in the transaction. • Non-fulfilment of seller duties – disputes may also be brought when the seller fails to meet the agreed obligations, which can impact the completion of the transaction. 10.3 “Broken-Deal” Disputes Lessons from Pending Transactions in Early 2020 Iraq did not encounter any pending transactions directly disrupted by COVID-19 in early 2020. Although lockdown measures caused delays across all transactions, both parties experi - enced these delays equally, and no deals were broken. Consequently, no significant disputes arose, and there are no major lessons learned from that period.
Shareholder activism is not a significant force in Iraq. There is very little focus on such activism, and it does not play a substantial role in influenc -
ing corporate decisions. 11.2 Aims of Activists
Activist efforts aimed at encouraging compa - nies to enter into M&A transactions, spin-offs or major divestitures are virtually non-existent in Iraq. There is little to no organised shareholder activism in this area, and such activities do not influence corporate decision-making in the juris - diction. 11.3 Interference With Completion In Iraq, there are virtually no activists focused on M&A, and as such, interference with the comple - tion of announced transactions is not a concern.
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