Questions & Answers
Liability of an LLC managing director through a power of attorney
Hello,
I would love to ask for advice.
What is the liability of managing director, who is not mentioned on the trade license but has a power of attorney to act on behalf of the owner, sign contracts and documentation, deal with banks and UAE authorities, tax returns...etc?
We are talking about an LLC company in Dubai.
And would you recommend directors and offices liability insurance?
Thank you for your help.
As a Managing Director, he is responsible for all actions of the company.
However, he will not be personally responsible if he can show that all actions have been taken with the permission of the owner and under the powers given in the POA.
It is always advisable to have insurance.
Regards,
Santanu
Dear client,
Thanks for your query,
Insurance is recommended. But if the POA holder is not a partner in the trade license, he should not misuse the powers mentioned in the power of attorney. Personally, the POA holder will not be liable.
Thanks
Hi there,
Generally, the manager on the trade license has all the responsibilities and obligations.
But given the situation of the MD who is acting on behalf of the manager through POA will be responsible in the personal capacity for all criminal actions if any.
Again the civil liabilities arising out of any such disputes will go under the heads of the company and its manager.
Thanks,
Sudhanshu Singh
