Personal and joint liability of partner in limited liability company in UAE federal corporate law No. 32 of 2021

Abstract

The limited liability company (LLC) is regarded as a significant contributor to the national economy. Many people use it because they believe their liability is limited to the amount of their capital share. The UAE lawmaker recognized this in the Commercial Companies Law No. 32 of 2021, when it identified cases in which the partners’ liability for debts and obligations becomes personal and joint in the event of violation of the law or fraud by the partners or managers of the company. As a result, the capital is not the only guarantee for the creditors of the company. This study aims to analyze the legal texts and elucidate the cases in which the partners' liability is regarded personal and joint.

Keywords

• Limited liability
• Personal liability
• Joint liability