Questions & Answers
How to protect my interests as a partner at the incorporation of an LLC
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.
Dear questioner,
We hope your day goes well!
We need to review the company's articles of incorporation to find out who the director is, his authority and a copy of the power of attorney.
Please send us a copy of the documents, it will be a great opportunity to advise.
You may contact us by phone or email.
Dear Client,
Good day!
A power of attorney or authorization letter is to delegate your authority to the third party. But it does not dissolve you from the rights and responsibility.
If you are a partner in the company you are responsible for your liability. The authorized person is only authorized to act on your behalf of whatever you instruct the person.
Authorization can be to anybody, you can authorize any person with limited authorization or general authorization but that doesn't remove the liability or your responsibilities over the company, shares, project or payments.
For further assistance, please feel free to contact us by phone or send us an email.
Thank you.
