Kuwait Court of Cassation principle number 1339

A creditor of a general partnership has the right to demand payment of the debt from the partnership alone, from any partner who was a member at the time of contracting, or from the partnership and the general partners together, without restriction. Rationale thereof: the unlimited liability of the general partners in their private assets. Articles 4, 22 of Law 15 of 1960, as amended. - Forfeiture of creditors’ right of recourse against the general partners upon their failure to object to the decision to convert the company within sixty days from the date they are notified thereof by registered letter. Expiry of this period without bringing an objection action. Effect thereof. Forfeiture of the right of the general partners’ creditors to bring it. - Failure to give notification of the company’s conversion. Effect thereof. The creditors’ right to security by recourse against the general partners is not forfeited. Rationale thereof. An example concerning failure to notify the creditor of the conversion of a general partnership into a limited liability company. - 254 - Obligation