Liability of Directors of Limited Liability Companies (“LLC”)

Analysis

In principle, a company is a legal person in its own capacity to create rights and bear liabilities, and as such can own property, enter into contracts with other parties and be involved in any dispute with other legal people.

In principle, a company is a legal person in its own capacity to create rights and bear liabilities, and as such can own property, enter into contracts with other parties and be involved in any dispute with other legal people.  The company can only enjoy those rights and incur those liabilities through decisions made by those that own, control or may be one or more directors of the company. The day to day management of a company is usually entrusted to its directors. The Commercial Companies Law of Qatar, No. 5 of 2002 (“The Law”) imposes duties upon directors of a Limited Liability Company “the Company” based on the particular nature of the company. However, each company's constitutional documents should include the directors' duties, responsibilities and any limitation upon their authority. What is the liability of the directors for any unlawful act and what remedies are imposed?