01
Legal issue
Transfer of a company to a new owner does not affect the legal person’s pre-existing obligations to good-faith beneficiaries.
02
Published principle
The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.
This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.
A legal person has its own name, independent patrimony and a representative who expresses its will; the representative’s acts are attributed to the legal person itself. Accordingly, transfer of ownership of a company from one proprietor to another, by any means, does not affect valid obligations previously incurred through the former proprietor. Those obligations remain binding on, and enforceable against, the company unless the law expressly provides otherwise.
03
Applicability
The principle concerns continuity of the legal person’s own obligations. It does not automatically determine personal liability of the former or new owner, novation, debt assumption, guarantees or an asset sale as distinct from a share transfer. This is an account of the published principle, not a full judgment translation.
04
Related instruments
- Rules on separate corporate legal personality
05