Liability of Directors in an LLC

Analysis

As a general principle, a limited liability company will be held liable for the actions of its manager when those actions are carried out in its name and within the scope of the manager's authority as set out in the company's Memorandum of Association.

As a general principle, a limited liability company will be held liable for the actions of its manager when those actions are carried out in its name and within the scope of the manager's authority as set out in the company's Memorandum of Association. The exception to this general principle is where the manager's activities are fraudulent.