Questions & Answers
Questions & Answers
4 available 4 • View allPartners liability for bounced cheques issued by the director
0
Q: I am a 49% shareholder in a 10-year-old LLC Company. We have a separate Managing Director that has no shareholding in the company.
I was out of the country for an extended period of 5+ months and recently returned to the UAE. 2 weeks after my return, I discovered that salaries had not been paid to staff for the month of July.
I queried the Managing Director who was away on annual leave at the time. He told me the company was expecting money in.
I then checked with the accountant who told me the company financials were in a dire situation and updated me on receivables and payables. The Managing Director then proceeded to serve 4 weeks notice to resign.
After this, I discovered that several company cheques that he had written to suppliers had bounced and were in fact PDC's, some of which had been issued several months ago.
My questions are:
1. What recourse do we have against the MD for these liabilities?
2. What would be our best course of action to minimize shareholder liability?

Aug 21, 2018
2024
The procedures required for the cancellation of a company and visas

15
Q: I am a partner in an LLC registered in Dubai, whose license was expired in Nov 2017.
I was a passive investor stationed in India and the company was managed my senior partner and MD (Managing director) of the company who was stationed in Dubai.
The company was not managed well, the licenses were not renewed and the business activities did not take place. My last visit was in May 2017.
The MD of the company is still in Dubai on an earlier visa but didn't get in touch with me and he's not reachable.
Now, I want to start a new venture in any free zone on an individual basis. How can I cancel the earlier visa and get a new investor visa in the free zone?
Is it necessary to liquidate the old company in order to cancel the visa? Is it possible for me to cancel the visa on an individual basis and apply for new company formation?
Please guide me.


Jan 21, 2018
13243
التصرُّف الأمثل عند تعرُّض الشركة لأزمة مالية وعدم الوفاء بالالتزامات


0
س: لدينا شركة ذات مسؤولية محدودة بدبي وهي مدينة بموجب عقود مع عملاء وديون أخرى لشيكات مستحقة الدفع.
لا توجد أموال طوال العام المالي 2019 وحتي هذه اللحظة مع العلم أننا كنا وما زلنا نحاول إخراج الشركة من الأزمة وضخ أموال من جيوبنا الخاصة أملاً في استقرار الوضع المالي، ولكن حين جاءت أزمة كورونا، زاد الامر سوءًا.
كيف نتصرف عندما نواجه دعاوى قضائية؟
وما الحل؟



Apr 27, 2020
498
مسؤولية مُنظِّم فعاليات عن تأجيل إحداها بسبب الإجراءات الاحترازية
0
س: أعمل في تنظيم الفعاليات وقمت بتأجيل إحداها بناءً على قرارات الإجراءات الاحترازية الصادرة من الجهات المعنية، وحاليًا يطالبني بعض العملاء برد المبالغ المُسدّدة منهم، كما أرسل أحدهم إنذارًا من محاميه.
هل أنا مُلزَم بالسداد بالرغم من عدم إلغاء الفعالية وإنما تأجيلها لحين السماح بتنفيذها من الجهات المعنية؟ وكيف أرد على الإنذار؟

May 21, 2020
121
Legal blog
2 available 2 • View allThe Duties and Obligations of the LLC Manager in the UAE 22
In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.
Mar 25, 2020
19906
What You Must Know about Company Liquidation in the UAE 15
Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.
Mar 18, 2020
7301
Laws & Regulations
3 available 3 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.
Mar 25, 2015
29550
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148443
Federal Law No. (3) of 1987 Promulgating the Penal Code 29
This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.
Dec 8, 1987
47926

Premium
Other answers by
1556 1556 answers •
View allMy cousin has multiple penal judgments of fine and jail. How will this be calculated? 0
My cousin is in the central jail of Al Awir since October 2024 till date 20/03/25. She has 6 different penal cases all judgements are done, last one was done yesterday.
In total, she has a fine of about 135000, 1 month in jail, and deportation in 1 case.
How will this be calculated moving forward?
Also she has spent time in different police station detentions from 23rd May 2024 till October including 48 days or so in Ras al Khaima.
Mar 21, 2025
56
Can I file for mutual divorce from Dubai as an Indian resident and my husband works in Saudi? 0
Needed to know if I am eligible to file for mutual divorce as an Indian expat living in Dubai and holding an Indian passport and also have Canadian PR.
My husband is a Canadian citizen working in Saudi on a work visa.
What are my rights?
Can I ask for alimony?
Can I file for divorce from Dubai?
I have no children from the marriage.
Mar 21, 2025
91
How can I cancel my visa and POA for financial matters if I have a travel ban for company bounced cheque? 0
I am seeking urgent guidance regarding my current visa status in the UAE. I was previously employed by a company that has now shut down, but my visa is still under that company.
During my tenure, I held Power of Attorney (POA) for all financial matters. However, after a cheque issued by the company bounced, the owner revoked my POA without my knowledge.
The company officially closed last year, and the owner (a lady) has been missing since the case emerged.
No one from the company is responding, and I am currently stuck in Dubai due to a travel ban imposed on me related to this case.
I need clarification on the following points:
How can I cancel my existing visa under this closed company?
Will I be able to obtain a new visa under another company despite the travel ban?
Are there any legal blocks or restrictions affecting my visa or employment options?
What legal steps can I take to resolve this situation?
I would appreciate your guidance on the next steps and any possible solutions.
Mar 20, 2025
78
What are my options after my rental renewal offer and deposit was rejected by the owner? 0
Hello,
I submitted an offer and deposit through the trustee office, but the owner rejected it. What is the next step?
They sent an email notification stating that if not renewed within the contract's end time, 500 AED will be deducted for each additional day of stay.
Mar 20, 2025
63
How can I lift my ex-wife’s travel ban on my son and secure full custody? 0
Hello,
My ex-wife has already obtained a travel ban for my 7-year-old son, who has been living with me for more than two years without any support from her.
What should I do to get the travel ban lifted permanently? Should I file a custody case, and will it help?
How can I get full custody of my son, as his mother cannot properly take care of him?
Mar 20, 2025
65

Other answers by
305 305 answers •
View allالضمانات التي تحصل عليها شركة التمويل مقابل إعطاء قرض 0
حصلت على قرض شخصي وكريدت كارد من مؤسسة للتمويل بإجمالي ٥٠ ألف وتعثرت لفترة والآن يطالبونني بدفع مبلغ ٢٠٠ ألف درهم بالفوائد وكنت أعطيتهم شيك بقيمة ٤٢ ألف وقتها.
سؤالي:
هل يوجد سند لأمر داخل عقد القرض (الأبليكيشن) الخاص بالشركة التي وقعت معها في البداية؟
أم لا يملكون ضمانًا آخر يُمكِّنهم من مقاضاتي به سوى الشيك الذي أعطيته لهم فقط؟
مع جزيل الشكر!
May 19, 2021
498
تقديم دعوى ضد مقاول استلم دفعتين من المال وأوقف العمل 0
هناك مشكلة مع مقاول إذ اتفقنا على بناء ملحق داخل منزل خاص ووقعنا العقد واستلم أول دفعة.
اشتغل حسب العقد واستلم الدفعة الثانية وأوقف العمل ويرفض المواصلة. تبين لي بعدما حاولت أن أقدم شكوى ضده أنه يستخدم ختم وعقد لشركة منتهية في سنة 2013 ولا يوجد لديه أي ترخيص.
كيف أستطيع أن أشكوه وبنفس الوقت أواصل البناء؟
May 20, 2021
973
Can the wife file for maintenance in the UAE after judgement in home country? 0
My wife and I are non-Muslims. Divorce was settled in our home country court which decided that I am the custodian of the children and no alimony has to be paid to her.
Children are living with me here in the UAE. However, she still resides here in the UAE using a tourist visa. She is planning to file a Maintenance Case against me in the UAE Family Court.
Can she do that?
Am I obliged to pay her alimony?
Dec 7, 2020
1399
ماذا بعد الحصول على حكم في قضية عمالية؟ 0
فصلتني الشركة فصلاً تعسفيًا وقمت بمقاضاة الشركة والحمد لله حصلت على حكم بمستحقاتي المالية من رواتب متأخرة ومكافأة نهاية الخدمة.
تقدمت بطلب تنفيذ ولم تدفع الشركة لي أي مبالغ حتى الآن!
ما الخطوة الواجب فعلها في هذه الحالة؟
Oct 8, 2020
569
Cancellation of an off-plan property and seeking refund 0
Hello
I bought an off-plan apartment with a developer, paid half and the other half was supposed to be paid on receiving the apartment which was supposed to be received end of 2019.
But they postponed it till March 2020, and now the project is way behind and no improvement at all as I'm in phase 2 and they are still building phase one.
What can I do to get my money back?
Sep 26, 2020
692

Premium
Other answers by
1306 1306 answers •
View allCan I file for mutual divorce from Dubai as an Indian resident and my husband works in Saudi? 0
Needed to know if I am eligible to file for mutual divorce as an Indian expat living in Dubai and holding an Indian passport and also have Canadian PR.
My husband is a Canadian citizen working in Saudi on a work visa.
What are my rights?
Can I ask for alimony?
Can I file for divorce from Dubai?
I have no children from the marriage.
Mar 21, 2025
91
How can I cancel my visa and POA for financial matters if I have a travel ban for company bounced cheque? 0
I am seeking urgent guidance regarding my current visa status in the UAE. I was previously employed by a company that has now shut down, but my visa is still under that company.
During my tenure, I held Power of Attorney (POA) for all financial matters. However, after a cheque issued by the company bounced, the owner revoked my POA without my knowledge.
The company officially closed last year, and the owner (a lady) has been missing since the case emerged.
No one from the company is responding, and I am currently stuck in Dubai due to a travel ban imposed on me related to this case.
I need clarification on the following points:
How can I cancel my existing visa under this closed company?
Will I be able to obtain a new visa under another company despite the travel ban?
Are there any legal blocks or restrictions affecting my visa or employment options?
What legal steps can I take to resolve this situation?
I would appreciate your guidance on the next steps and any possible solutions.
Mar 20, 2025
78
How can I lift my ex-wife’s travel ban on my son and secure full custody? 0
Hello,
My ex-wife has already obtained a travel ban for my 7-year-old son, who has been living with me for more than two years without any support from her.
What should I do to get the travel ban lifted permanently? Should I file a custody case, and will it help?
How can I get full custody of my son, as his mother cannot properly take care of him?
Mar 20, 2025
65
I supplied goods to a client who fled the country without paying. Can the employer hold me liable for that? 0
I work in sales and did a transaction worth AED 156k. We supplied goods to a client, but he did not pay us and eloped with the goods and money.
Now the company is asking me to pay for the losses. Advise if this is legal.
Apr 18, 2025
14
What can I do if my tenant is not providing rent cheques nor responding to renew the tenancy contract? 0
Hi,
I am a landlord and need advice on the following scenario.
- The contract with my tenant expired in Sep 2024. Upon requesting the renewal, the tenant mentioned that she is out of the country and will sign the renewal contract and provide the rent checks. In the meantime, she paid the first quarter of rent through a bank transfer.
- After 3 months, when the next quarter's payment was due, she deposited the next quarter's rent into my bank but did not sign the contract renewal despite my follow-up with her multiple times. At this time, she had returned to Dubai.
- Now the next quarter payment is due, however, the tenant is not responding to WhatsApp or answering calls. She is NOT paying rent or renewing the contract.
What action can I take since she is not answering my calls or messages?
She does not have a valid contract or Ejari, and her rent is delayed by 1 month. All WhatsApp messages are delivered, but she chooses not to respond.
Apr 18, 2025
19

Premium
Other answers by
233 233 answers •
View allCan a registered company work with a freelancer who does not have a freelancer permit? 0
Hello,
Can a registered company work with a freelancer who does not have a freelancer permit?
At the same time, they are employed by another company.
Mar 21, 2025
59
Terminated for performance issues without prior warning while on vacation. What should I do? 0
Hello Sir,
I am facing an issue with my employer. I work in the private sector in the UAE, and my employment visa expires in June 2025.
After two years, I traveled to my home country for vacation, and one week after my arrival, the company sent me an email terminating my employment due to performance issues.
However, I was never given any prior warning or written notice. The termination email also did not mention any notice period or other details.
I would like to know my rights and what I should do in this situation.
Mar 25, 2025
71
Can the new owner use the old eviction notice to re-rent at a higher rate? 0
Hello,
My landlord issued an eviction notice stating an intention to sell.
He has since sold the property before the eviction date, and now the new owner intends to use the old notice to evict me and re-rent the apartment at a higher rate.
Is this allowed?
Mar 24, 2025
119
Am I allowed to wear a burka during the divorce hearing at the family court? 0
Hello,
Am I allowed to wear a burka during the divorce hearing at the family court?
Apr 16, 2025
45
How can I cancel my current visa immediately without serving notice? 0
Hello,
I got an offer letter from another company. I want the immediate cancellation paper before 20th April.
I don't have time to submit my notice period registration. What should I do?
Please give me the best advice!
Apr 4, 2025
90

Other answers by
11 11 answers •
View allClaiming second wife's rights from husband residing in the UAE 0
Hi sir,
I am my husband's second wife. We married in Pakistan. Our marriage is not registered in the UAE.
Now, he abandoned me and has not sent me a visa.
Can I come to the UAE and file a case against my husband?
Dec 12, 2022
234
Is it better to file a case against husband for alimony before giving birth? 0
Dear sir/madam,
Am I allowed to start opening a case against my husband for alimony and support if I have not given birth yet?
Or do I have to wait until I give birth and then open a case against him?
Nov 20, 2022
273
Clearing the judgement of a cheque case and returning to the UAE 0
Hi,
Since 2018, I have cheque case amount of AED 345000. During my absence, the court has sentenced me for 18 months of jail.
Now I'm in India. How can I clear with the use of POA and how long will it take to clear? I have to return back to the UAE asap.
Jan 27, 2021
606
Options for dealing with a divorce case while being abroad 0
Is it possible to have a divorce case and leave the country?
Do I have to stay in the UAE if the divorce is still not done?
The procedures are very slow and I cannot be in the UAE in the upcoming months.
What are the options for dealing with the divorce and the court while being abroad?
Jun 29, 2020
1250
Filing a criminal case of physical abuse against the husband 0
My husband physically abused me and I went to do a medical report.
Do I have to open a criminal case against him or I can use the medical report only in Dubai Court?
Jul 1, 2020
2553
Get quotes from lawyers
Find the right lawyer for your legal needs.
Submit your request and get multiple
competitive offers from
qualified lawyers.
Popular Q&A
View all Looking for something else?
Ask for advice from a lawyer