Partners in a Limited Liability Company Will Be Jointly Liable If It Is Not Registered in the Commercial Register and the Words "Limited Liability" Are Not Added To Its Name in Business Dealings

in Arab Law Quarterly
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Abstract

The Abu Dhabi Court of Cassation held that a company and the partners therein will be jointly liable even if the company was a limited liability company, if the partners or the manager of the company failed to register the company with the Commercial Register as a limited liability company and publish a Memorandum and Articles of Association of the company according to the Commercial Company Law. The Abu Dhabi Court of Cassation further held that if the company failed to declare the legal status of a limited liability company and to print the words "limited liability company" on its letterheads, and its office name plate, the partners therein will be jointly liable as a partnership.

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