The scope of personal responsibility of the partners in Saudi professional corporation.

Abstract

The scope of the partners’ personal responsibility towards the company is a broad topic. Medium- and large-scale organisations are based on partnership deeds and agreements, and every country has different rules and regulations regarding the scope and responsibility of the partners. This study focuses on the same context and evaluates the rules and regulations that are imposed in the region of Saudi Arabia (KSA). In KSA, recent policies differ from other regions regarding the responsibility of partners towards organisational performance. The study aims to analyse the scope of the personal responsibility of the partners in the Saudi Professional Corporation. Moreover, the study focuses on identifying the responsibility of professional partners in limited and unlimited liability companies. In KSA, the partners’ professional responsibility is to provide conditional services that are defined and agreed upon as per the agreement, which ensures that the partner continues with the professional work until the end of the agreement. The Saudi Arabian Companies Law states that a company can keep its original name if it wishes to transform into a self-owned company with limited liability. The legislator advises mentioning this data alongside the company’s name. As a joint stock company often has a strong credit, it is trusted and credited, which makes it a company with strong credit. A limited liability is characterised by weak credit, which is represented by the company's liability due to the lack of capital, which does not achieve sufficient security for creditors.