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The liability of partners when the company defaults in making payments

I am a partner in an LLC company that has faced many labor cases and judgments by the court.

In the current situation, the company is not able to pay, will there be any travel ban on the partners?

Thanks!

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Colin Biggers & Paisley Lawyers (Middle East)
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4 Jan 2021, 10:18

Dear Questioner,

The manager of the company is usually liable if the company defaults in making payments.

However, we need to check the Memorandum of Understanding of the Company and any relevant documents such as board resolutions passed by the directors to check if other partners are liable for any default.

In the event the other partners are liable, then we need to perform a search on the cases filed against partners in the UAE.

Please send us a copy of the Memorandum of Understanding of the Company and board resolutions via email to review the same and advise you properly on the next steps.

Thanks!

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