Legal Responsibility of Limited Liability Company’s Director

Abstract

Abstract This study tackled legal responsibility of limited liability company’s director, by explaining the nature of limited liability company, the way of appointing its director, and defining his/her duties and powers towards the company. The key problem of the study examines the extent of the civil and penal responsibility of the Director or the board of directors towards the company. For this purpose, the study adapted both descriptive and analytical approach to analyze texts of the articles. This research concluded that, on the one hand, limited liability companies are of a mixed nature, and that, on the other hand, the responsibility that rests on the director or the board of directors is not limited to civil responsibility; there is a penal responsibility as well if they commit acts that constitute a crime which is punishable. Therefore, they will be subject to the Penal Code, the Companies Law, or any other law during their work period. The study concluded with recommendations, the most important of which is that a supervisory board must be established to manage the company in case of negligence or error, which led to the company reaching a debt loss of 50% and obliging the director or the board of directors jointly to pay the company’s debts if their negligence or fraud is proven. Keywords: Limited Liability Company, Legal Liability, Partner, Company’s Manager