The Egyptian Court of Cassation addressed the complex intersection of Islamic inheritance rules and modern corporate structures, ruling on whether shares in a limited liability company constitute inheritable personal property under the Egyptian Civil Code.
A deceased businessman held 60% of shares in a family-owned LLC. His second wife claimed one-eighth of the inheritance under Islamic law, while the children from his first marriage argued that the company's operating agreement restricted share transfer to family members only and excluded spouses.
The Court held that LLC shares are movable property subject to inheritance under Article 1 of the Inheritance Law (Law No. 77 of 1943), but that contractual restrictions on transfer (such as right of first refusal clauses in operating agreements) survive the shareholder's death and bind the heirs. The widow was entitled to the value of her inheritance share, but not to become a shareholder against the terms of the operating agreement.