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?

Q: Hi, I have been given a special power of attorney by my company owner to represent the company. However, now that the company is not performing well financially and there is some outstanding to be cleared by the company to service providers like Etisalat and a few others as well. In such circumstance when the company is liable to pay the amount and the owner is not coming back from India due to medical reasons, what is my position in all this?

Q: The question is connected with an LLC company from Dubai. I am the only employee. I am not sure if I can use Director titles for people not listed on the company organization chart (not employed). I need to sign an agreement with 2 signatories on our side. The second signatory is a contractor from abroad (contracted through a Polish/European entity). Can I give him a Power Of Attorney, so based on Dubai law - can he sign documents on behalf of the LLC? Which title can we use for him as a person which has a Power of Attorney from LLC or me: Managing Director OR Account Manager? Can we create a power of attorney only in English? Is it mandatory to use Arabic?

Q: I am a partner in an LLC company with 50% shares each. Since I am not staying in UAE I had given partner all the Power of Attorney to run the business. I need to know if my partner defaults in any payments for license renewal or non-payment of salary. Will I still be held responsible for his actions or since he's having all the rights he is responsible? Kindly advise.

س: السلام عليكم، شركة ذات مسؤولية محدودة يمتلكها شريكان بنسب ٥١% و٤٩%. صاحب النسبة الأعلى يختص بالإدارة كما جاء في عقد التأسيس ولكنه حرر (توكيلاً خاصًا واعتماد بالتوقيع) لشخص آخر أوكله بمهام الشركة؛ مثل تعيين العمالة وإنهاء الخدمات والرواتب وما نحو ذلك. مَن منهما يعتبر المدير الذي يُقَاضَى أمام المحاكم العمالية؟

س: السلام عليكم، شركة ذات مسؤولية محدودة بها مدير شريك (حسب عقد التأسيس) ولكن لديه شخص آخر يقوم بمهامه (بموجب توكيل خاص واعتماد توقيع). عند مقاضاة الشركة، مَن يصدر بحقه أمر الضبط والإحضار؛ المدير الشريك أم الوكيل؟

Q: Dear Sir/Madam, Is it possible for license partners to give power of attorney to another person to manage the business without the consent of the owner?

Q: Asalamu Alaikum, I have a question about one partner who took over all the business and blamed the main partner of the business who started this business with his investment. The partner lied and used a fake signature to trap him. He threatened him with jail. The main partner gave him a power of attorney in his absence. But he needs to use it with the approval of his main partner. He has purposefully kept his company in the red for the last eight months. We need legal assistance in this case to get out of this situation.

Q: Dear Sir/Madam, I work in Umm Al Quwain for a construction company. My name is on the license with 0% as the manager, and it's a sole proprietorship license. If there is a case involving a returned cheque or a civil case against the company, will I be held responsible? I am currently facing a travel ban, and I am employed on a salary basis with the company.

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.

With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.

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.

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.