Questions & Answers
Liability of company director for a bounced cheque issued by the general manager
My brother was the director of a company in Dubai with 16 per cent shareholding with 5 other partners. They had a general manager who had signing authority.
The general manager signed cheques worth AED 7 million and disappeared. My brother lives in Kuwait. What is the impact of the bounced cheque on my brother?
Dear questioner,
As the cheques are not signed by your brother, therefore it does not impact him.
Kindly contact us directly for a detailed discussion on this.
If need be, kindly contact us by phone or email for further assistance.
Article 632 of the UAE Commercial Transactions Law states that "The bearer of the check has recourse to the drawer, endorsers and other obligors if he presented it on the legal date and its value was not paid."
For more details and legal advice, please contact the office by e-mail or call.
If a cheque is issued by a manager, then in the criminal court, the manager will be individually liable for consequences but a civil case can be registered against the company for recovery of the amount and in that case travel ban and arrest also will be only for the manager, however, the court can siege the company assets against the court order.
You may contact me directly via phone or email for further consultation.
Dear Client,
Good day!
They can file a bounced cheque case against your brother. It is possible for you to file a criminal complaint against the manager, explaining his embezzlement of the money and breach of trust.
You file a case against him so that that judgement can help you on the cases filed against you.
For further assistance, please feel free to contact us by phone or send an email.
Thank you.
