Responsibility for supplier payments in an LLC company – manager or partners?

Dear Questioner,

Yes, the partner is responsible for the company’s debts to the extent of each partner’s share in the company.

Dear Questioner,

According to UAE law, all partners in a limited liability company (LLC) are jointly and severally liable for the debts and obligations of the company.

This means that if the company is unable to pay its debts, the creditors can pursue any or all of the partners for payment.

In your case, as a partner with a 33% share, you are responsible for a proportionate share of the company's debts.

This means that if the company is unable to pay its debts, you may be held responsible for 33% of the total amount owed.

The manager of the company may also be held responsible for the company's debts, as they are responsible for managing the company's finances and ensuring that all debts are paid.

However, as a partner, you are also responsible for monitoring the company's financial activities and ensuring that all debts are paid.

It is important to note that if the company is unable to pay its debts, the creditors may pursue any or all of the partners for payment.

This means that even if you are not actively involved in the business, you may still be held responsible for the company's debts.

To protect yourself from any potential liabilities, You can contact us at our toll-free number to understand your rights and responsibilities as a partner in an LLC.

Dear Questioner,

As long as you are a partner in a limited liability company, you are responsible with the partners for all of the company’s activities.

Dear Inquirer,

Hope you are doing well!

According to UAE law, as a partner of an LLC company, you are jointly and severally liable for any payment liabilities of the company.

This means that if the company is unable to pay its debts, the creditors can pursue you for the full amount owed, regardless of your level of involvement in the business.

It is important to note that the manager of the company may also be held personally liable for any payment liabilities if they are found to have acted negligently or fraudulently.

However, as a partner, you cannot escape liability by simply stating that you are not actively involved in the business.

To protect yourself from potential liabilities, it is important to have a clear understanding of the company's financial situation and to regularly review and monitor its financial activities.

If you have any other queries, you can reach us through email or via mobile.

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Best Regards,

MennaTullah

Dear Questioner,

As a partner in a Dubai mainland LLC with a 33% share and no active involvement in the business, your liability for supplier payments is generally limited to your capital contribution, which is 33%.

This means you wouldn't be personally responsible for the entire debt if the company fails to pay its suppliers.