Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.
Find out moreWe are excited to unveil our inaugural Environmental, Social, and Governance (ESG) Report, highlighting our dedication to responsible and sustainable business practices.
From our efforts on cutting carbon emissions to promoting diversity and inclusion initiatives, offering pro bono legal aid, and aiding local communities, each initiative underscores our profound commitment to fostering positive change in our communities and beyond.
Delve into our journey of progress and future aspirations.
Read NowAhmed El Amoury - Senior Associate - Litigation / Employment and Incentives / Legislative Drafting / Insurance
Background
The Claimant entered into a murabaha agreement with a limited liability company (LLC). A dispute arose from the said agreement and the Claimant commenced court proceedings against the LLC and its manager alleging that the LLC conducted illegal activities. The Claimant sought an order from the Court requesting that the LLC and the manager jointly and severally repay the Claimant’s monies.
The Court of First Instance and, on appeal, the Court of Appeal held in favour of the Claimant and ordered the LLC and the manager jointly to repay the Claimant’s monies. The manager and the LLC filed a further appeal with the Court of Cassation arguing that a manager cannot be liable for the contractual obligations of a company.
The Court of Cassation decision:
The Court of Cassation disallowed the appeal and decided the following:
Comment on the judgment
Notwithstanding that it may be a simple task to ascertain whether or not an entity is a company with limited liability, the failure of managers of such company to make it clear to all persons that the company they are dealing with is a limited liability can shift liability to such managers personally.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.