Q: I am a partner and I have a partner visa in one of the courier companies in Dubai. The partners in Dubai are showing a big loss…A: The manager can conduct any banking dealings on behalf of the company without consulting the partners if the company’s establishment contract stipulates that…

Dubai, UAE

2783

The responsibility of a partner in a limited liability company

Hi Sir,

I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company.

We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss.

They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money.

Now, I need to get out of this mess as I was not involved and they were not sharing any updated records.

Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors.

I am afraid to come to Dubai to discuss as the company sponsor is in touch with them.

They can put me in trouble in order to get my share.

Please advise!

Premium

Mohamed Bakheet

Mohamed Bakheet Advocates & Legal Consultants

Chat

Hire

Meet

4 Feb 2020, 07:38

What is the type of the company?

For example, limited liability or what exactly?

4 Feb 2020, 10:16

Limited liability company.

4 Feb 2020, 10:29

The partner in the limited liability company is asked about his share in the company.

According to the company’s founding contract, the manager can conduct any banking dealings on behalf of the company without consulting the partners if the company’s establishment contract stipulates that.

4 Feb 2020, 10:39

But one partner posted on his Facebook account offering profits and shares to get money which I opposed and the loan is taken on the company’s letter pad keeping company as guarantor.

4 Feb 2020, 10:57

We can help you to know.

Just contact us via phone or email.

4 Feb 2020, 11:12

The current situation of the company imposes yearly contract renewal and no enough cash for renewal.

Now both Dubai partners are asking us to give our share because they have one investor ready to become a partner but nothing for us.

They have put extra charges on us to pay, but I don't want to leave my partnership without compensation.

4 Feb 2020, 11:21

As for the managers in the limited liability company, they shall be responsible for the company and others for any cheating activities.

The director is also obligated to compensate the company for any losses and expenses due to mismanagement or misuse of his powers according to the commercial law and in accordance with the company’s founding contract.

4 Feb 2020, 11:25

My status is a partner, am I responsible also?

4 Feb 2020, 11:26

The manager is the only responsible one in case of fraud and serious error.

4 Feb 2020, 11:53

Thank you sir!

I will definitely be in touch with you by next week in Dubai, but I am afraid if I travel to Dubai, they can do any action against me.

Can the company sponsor put me in any kind of trouble in my absence (absconding or travel ban)?

4 Feb 2020, 12:28

The company sponsor is in Dubai?

4 Feb 2020, 13:25

Yes, Emarati.