Article (261)

A Limited Liability Company is a company in which the number of partners does not exceed fifty partners, and each of them shall only be liable to the extent of his share in the capital. If the number of the partners falls below two, the company shall turn, by force of law, into a single person company unless the company completes the number within thirty days from the date of pooling the company's shares into the hands of one partner.

The company shall not be incorporated nor its capital be increased nor any borrowing be made through public subscription. It shall not issue negotiable shares or bonds, and the transfer of partners' shares in it shall be subject to their right of retrieval and to the special terms and conditions included in the company's memorandum of association as well as to the provisions of this law.

Article (262)

A Limited Liability Company shall not undertake insurance or banking activities or fund investment for the account of third parties in general.

Article (263)

A Limited Liability Company may have a special name, and such name may be derived from its purposes, and it may include the name of a partner or more. The name of the company shall be followed by the phrase (with Limited liability).

Such particulars shall be mentioned in all the company's contracts, invoices, advertisements, papers and publications, or else the company's managers shall be jointly liable to the extent of their private property towards third parties.

Article (264)

The company's capital must be adequate for realizing its objectives. It shall not be less than what is determined in the Executive Regulation of this law. In all cases the minimum capital must not be less than twenty thousands Bahraini Dinars.