How can I maintain a travel ban on an LLC manager in a labor case despite claims of independence?

Dear Questioner,

A key point to argue is the personal responsibility of the manager, especially in the context of a Limited Liability Company (LLC).

Even though an LLC is a separate legal entity, the manager is still personally accountable in cases where their actions have contributed to the failure of the company to comply with its obligations.

The manager’s role in overseeing the company's operations, financial decisions, and compliance is critical.

If the manager has failed to respond to enforcement measures (such as blocking of bank accounts and property), this could be seen as a deliberate attempt to avoid the company’s obligations.

The court should be reminded that as the manager, the individual holds a personal responsibility to ensure that legal and financial obligations are met, and their lack of cooperation can be interpreted as an attempt to frustrate enforcement.

The argument that the manager is an independent actor, and not personally liable for the company’s obligations, is not entirely valid in cases where the manager’s actions are directly contributing to the failure of the company to pay its debts.

The manager’s direct involvement in company affairs, including the failure to respond to inquiries, justifies the imposition of measures like the travel ban to ensure they comply with the enforcement actions.

Greetings,

Can you send the case papers on WhatsApp so that we can provide you with more accurate information?

Yes, a limited liability company has an independent personality from its founders.

However, if the manager, despite the company’s wealth, delays payment, legal measures can be taken against him, such as a travel ban, etc., but the request must be justified with sound legal justification.

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

Dear Questioner,

Thanks for your inquiry!

- Any potential harm or loss that could occur if the travel ban is lifted, such as the defendant fleeing the country or disposing of assets.

- The fact that the court has already approved the travel ban and that the defendant has only raised objections after the ban was imposed.

- The defendant's previous actions and lack of cooperation in the execution process, which have caused delays and hindered the plaintiff's ability to receive their rightful dues.

- The importance of enforcing court orders and ensuring that justice is served in a timely manner.

- The fact that the travel ban is a temporary measure and can be lifted once the defendant complies with the court's orders.

- Any other relevant evidence or arguments that support the need for the travel ban to remain in effect.

Kindly do not hesitate to contact us via phone or email for further guidance.

Greetings,

Dear Questioner,

To maintain the travel ban imposed on the director as a representative of a limited liability company, you can use the following points and arguments in your response:

1. Personal liability of the director:

Although a limited liability company has a separate legal personality, directors can be held personally liable for the financial obligations of the company if they are found to be acting in a manner that is not in line with the interests of creditors or neglecting their duty to enforce court judgments.

The director’s failure to respond to court enforcement constitutes a breach of his legal responsibility as the legal representative of the company.

2. The principle of independence in limited liability companies:

You can explain that the principle of independence does not protect directors from enforcement actions when they are taken to protect the rights of creditors in the event of the company’s failure to cooperate.

Under UAE law, courts can take measures to protect the rights of creditors if there is evidence that directors are acting in bad faith or are avoiding their obligations to enforce court judgments.

3. Explain that the travel ban was necessary:

Assure the court that the travel ban is a necessary measure due to the defendant’s repeated failure to respond to all enforcement attempts.

Explain that all other measures have failed to get the defendant to comply, and that the travel ban is a last resort to pressure to ensure compliance.

4. Evidence of the defendant’s actions and non-compliance:

Provide the court with a list of all enforcement actions you have taken (blocking accounts, seizing property, etc.), and highlight how the defendant has refused to cooperate with each one.

Show the court that the defendant’s repeated failure to respond constitutes a failure to cooperate with the debtor’s judicial enforcement, and confirms your need to take the travel ban action as a means of protecting your rights.

Dear questioner,

We need to argue his authorizations on company matters, emphasize the manager's role as a representative of the LLC, and highlight any instances where the manager personally signed documents or made representations on behalf of the company.

After this, we should highlight how the manager's actions (or lack thereof) have directly contributed to the company's non-compliance and the subsequent enforcement proceedings.

If you need further clarification, kindly share your WhatsApp number.