What is the liability of a partner at an LLC company in UAE?

A Limited Liability Company (LLC), as defined by Article 71 of UAE Federal Law No 2 of 2015, concerns commercial companies (New CCL) and came into force on July 1, 2015, replacing the existing Federal Law No: 8 of 1984 and its amendments concerning commercial companies. LLC is a company where the number of partners is at least two but shall not exceed 50. A partner shall be liable only to the extent of the share in the capital. A single natural or corporate person may incorporate and hold an LLC. The holder of the capital of the company shall not be liable for the obligations of the company other than to the extent of the capital as set out in its Memorandum of Association.

 Therefore, as per the article, the general rule is that a shareholder in an LLC is responsible only to the extent of his share /shares in the capital of the company. The exception to this general rule, as the court has reasoned, is that such a shareholder will be held personally liable, if he has exploited the principle of the independent liability of the company, as a means to conceal fraudulent acts or misappropriation of funds of the company in order to cause harm to his partners or creditors. In such a case, the protection bestowed by law for a shareholder in a limited liability company will not apply. He will be held liable in his personal capacity for such dispositions in a way that such liability will extend to his personal assets.
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