In Light of the Civil Procedure Law and the New Commercial Companies Law
Workshop at the ADJD on the Liability of the Legal Representative of the Limited Liability Company
July 18, 2022
The Abu Dhabi Judicial Department (ADJD) organised a workshop on the "Liability of the Legal Representative of the Limited Liability Company in the Enforcement of Judgments against the Company", in light of the Civil Procedures Law and its regulations, the new Commercial Companies Law and the principles of justice.
In his opening speech at the workshop, Counsellor Ali Al Shaer Al Dhaheri, Director of the Judicial Inspection Division at ADJD, highlighted the importance of the various workshops organised by the ADJD, through the Abu Dhabi Judicial Academy (ADJA), in cooperation with the relevant Courts and Divisions to enhance the understanding of the legal frameworks defined by the updated or new laws and legislations, within the limits and principles established by the rulings of the Abu Dhabi Court of Cassation, with the aim of consolidating the legal opinions, interpretations, approaches and views.
Mr. Al Dhaheri said that the organisation of specialised workshops, especially those discussing legislative developments, comes in pursuance of the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of the Presidential Court and Chairman of Abu Dhabi Judicial Department, to keep pace with legal developments and adjustments, and to develop the judiciary system in order to ensure its global leadership and thus to provide the best judicial services.
The workshop, moderated by judge Sultan Al Nyadi, President of the Abu Dhabi Commercial Court, and attended by about 50 members of the judiciary, Government cases lawyers, legal researchers and representatives of different departments, discussed the most important issues related to the legal representative of the limited liability company under the Federal Law No. 32 of 2021 on Limited Liability Companies, the extent of his/her personal liability for damages sustained by the company and his/her consequential legal liability, as well as the appropriateness of a judgment against the company in case of breach of such liability, or the need to take legal action to sue the person responsible for the company and to claim the sums awarded against him/her.
Dr. Ahmad Abdalzahir, legal advisor at the Technical Office of the Undersecretary of the ADJD, explained that Federal Decree Law No. 32 of 2021 on Commercial Companies specified the acts of the legal representative of the limited liability company, which are to preserve its rights and to exercise the care of a prudent person and perform all actions that are consistent with the purpose for which the company was established and the powers granted to him under the authorisation issued by the company in this regard, and in case of failure, he/she shall be held accountable and bear the legal responsibility.
For his part, Dr. Adel Achabi, Director of the Enforcement Division at the Judicial Department, addressed the personal and joint and several liability of the legal representative of the limited liability company within the limits established by the rulings of the Abu Dhabi Court of Cassation, and the cases where his/her liability is engaged for the judicial decisions issued against the company.