Questions & Answers
How to clear liability after leaving a mainland company?
I was a partner in a mainland company. During my tenure, I had given a personal guarantee for a bank loan for a mainland LLC company.
I have exited the company. The company is in poor financial condition. I wanted to know if the personal guarantee will/can be enforced if the company fails to pay the bank debt.
Can my personal assets in the UAE and INDIA be called upon?
Dear Client,
Good day!
If you have officially exited from the company, you still need to have CID check to see if there are cases or none against you or the company.
We will see if there's any case against you then, you have to represent, confirm and show the documentation that you no longer a partner in the company and clear yourself.
However, if you will not be able to provide documentation, there might be a judgement against you.
In this judgement, if you have not attended the case then, you have the right to reopen the case, explain to the judge and clear your liability from thereon.
If you are asking if there is judgement and you don't represent and explain to the judge, yes, there is a possibility of enforcement in India accordingly to the new law any judgement in the UAE court can be enforced in India.
For further assistance, please feel free to contact us via phone or email.
Thank you!
