Is it possible to hold a general manager responsible personally for a company debt?

Hello dear questioner,

We can help you in this matter, and if the amount is not real, we can file an accounting claim and settle the amount in installments over a comfortable period and a good installment plan, but we need more details.

For further discussion about the best legal solutions, please share your WhatsApp number.

Greetings.

What was the legal form of the company? Was it a one-person company, a multi-partner company, or a limited liability company with shares?

You can waive the debt if it was a limited liability company, and you paid your share of the capital.

Send us the case papers on WhatsApp so that we can provide you with more accurate information."

We are honored to provide you with legal support. For further inquiries about your topic, you can come to our office or contact us on WhatsApp.

Dear Questioner,

Thanks for your inquiry.

Under UAE law, a company debt can be pursued against the company's shareholders, directors, or managers if they have personally guaranteed the debt or if they are found to have committed any fraudulent or wrongful acts that led to the company's inability to pay the debt.

In your case, as the general manager of the company, you may be held personally liable for the debt if it can be proven that you have acted in a fraudulent or wrongful manner.

However, you have the right to contest the amount of the debt and negotiate a settlement with twofour54. It is important to gather evidence and documentation to support your claim that the amount is disputed.

As for examples of good settlements in this field, it would be best to consult with us as a lawyer who has handled similar cases and can provide you with specific examples and outcomes.

Each case is unique and the outcome will depend on various factors such as the amount of debt, the evidence presented, and the negotiation skills of both parties.

In any case, it is important to address the debt and negotiate a settlement as soon as possible to avoid any legal consequences. Failure to pay a debt in the UAE can result in a travel ban, freezing of assets, and even imprisonment.

It is best to seek legal advice and take the necessary steps to resolve the issue in a timely and efficient manner. Kindly do not hesitate to contact us by phone or email for further guidance.

Greetings,

Dear Inquirer

We are pleased to serve you and address your inquiries.

The company manager is only responsible for guiding the company’s funds, and he is only held accountable if his negligence in managing the company is proven.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants

Dear questioner,

As a general manager, your personal liability for a company debt might depend on various factors, including the company's legal structure, your role within the company, and any personal guarantees you've provided and there are high chances to reduce the claim and even remove the case from your name.

We have a track record of negotiation and reaching a final settlement. We are a team of lawyers having experience of more than 10 years. If you need to understand more about our team kindly share your WhatsApp number.

Hi,

Thanks for being detailed in your query!

Before explaining the process, we would like to highlight that we have a partnership agreement with most free zones in the UAE, including Media FZ in Abu Dhabi.

As a first step, since there is no clarity on why they are pursuing you personally, we request that you verify the documents.

We may also need to represent you before the FZ authority to understand the status of your matter. We have resolved many cases similar to yours, often resulting in a settlement and assistance with requesting installments.

We will confirm if there is any ban on you and will assist you until the matter is resolved and the ban is removed, if applicable.

Your case will require some initial investigation to confirm its current status, which will help us proceed with calculated steps.

Reach out to me through WhatsApp for assistance!

Dear Questioner,

You have a significant debt of 290,000 dirhams from your time as a general manager in a company in the twofour54 media free zone in Abu Dhabi. Here are the key points to consider:

1. **Personal Liability**: Generally, company debts are its responsibility, but you could be personally liable if you provided a personal guarantee, engaged in fraud, or disregarded corporate formalities.

2. **Contesting the Debt**: Gather documentation related to your role, such as employment contracts and financial records. Consulting a corporate law expert in the UAE can help you determine if you can dispute the debt.

Please contact us by phone or via email.

3. **Negotiating a Settlement**: Engaging a lawyer can aid in negotiation. Assess your financial situation and consider proposing a payment plan if a settlement isn’t feasible.

4. **Successful Settlements**: Settlements often involve reducing the debt amount or agreeing to manageable payment terms. Legal experts can help secure favorable terms by demonstrating financial hardship or disputing the debt's validity.

It's important to seek specialized advice to understand your rights and obligations regarding this historical company debt.

Thank you for your inquiry. It’s important to clarify a few key points regarding your situation.

In the UAE, depending on the company structure and the role of a general manager, personal liability may be attached in certain cases, especially when it comes to the debts of a company.

However, if the debt is in the name of the company and not in your personal capacity, we can explore options to contest the claim.

Disputes like this often require a detailed analysis of the company’s contracts, the nature of the debt, and your involvement as the general manager.

A settlement can indeed be negotiated depending on the specific facts, and I have handled several similar cases where favorable settlements were achieved.

In one recent case, we successfully negotiated a 40% reduction of the claimed amount, allowing for a structured payment plan for the remaining balance, easing the financial burden on the client.

To better assess your case and discuss possible strategies, I recommend scheduling a consultation. Feel free to reach out to me on WhatsApp or call me directly to discuss further.

Best regards,

Suhail Rana

In response to your query regarding the debt pursued by twofour54 (the media free zone in Abu Dhabi), I would like to clarify the following points under UAE law:

Personal Liability for Company Debts: Generally, under UAE law, directors and general managers are not personally liable for a company's debts unless there is specific evidence of personal guarantees or wrongdoing.

If the debt is purely a company obligation, it should not be pursued against you personally unless there is a specific legal basis (e.g., personal guarantees signed by you).

It would be important to review the original documents and contracts to determine why you are being pursued personally.

Disputing the Debt: Since you dispute the amount and believe it is incorrect, you have the right to contest the debt.

Filing an objection with relevant authorities or the court will allow you to present evidence showing why the amount is not valid or why you should not be held personally responsible.

Settlement Negotiation: Negotiating a settlement is a viable option, especially for a debt that is 10 years old. In many cases, creditors are willing to negotiate for a reduced settlement amount to avoid prolonged legal processes.

It is crucial to engage with legal experts who have experience in debt disputes in the UAE to assist with these negotiations.

Examples of Previous Settlements: Our firm has successfully negotiated settlements in similar situations, such as reducing corporate debts where personal liability was disputed.

For instance, we helped reduce a client's company debt by 40% after demonstrating that they were not personally liable and that the debt was inflated due to interest and penalties.

Each case is unique, and the outcome depends on the evidence presented and the creditor's willingness to negotiate.

Best Regards,

Omar Mosaad