Questions & Answers
Questions & Answers
5 available 5 • View allWinding down an LLC company and the liability of the manager after absconding
3
Q: Hi there Michael,
I am a 24% shareholder in an LLC wherein the other shareholders are our local partner with 51% shares and the partner who is listed as manager on the trade license with 25% shares.
The manager has absconded leaving behind unpaid VAT and other debts that are well over 30 days due (up to a year). No proceedings by creditors have been filed against the company and the MOA contains a general POA in favor of the Manager.
I would like to wind down the company without going through bankruptcy procedures. My understanding is that the listed manager of an LLC is personally liable for the Company's debts.
I need advice about the procedures required to wind down the company. I do not wish to go through bankruptcy procedures as the finances and management of the company were being handled by the manager. I am just the creative director of the LLC.
Please advise as soon as possible.

Jun 18, 2020
1942
Claiming entitlements from employer after receiving final settlement

1
Q: Hi,
We have a previous employee who was terminated last February, and he received his final settlement and his visa expired in April.
Then our previous manager renewed his visa in May for some personal agreement. He didn't report to work from May to July, and by the end of July, he filed a case while the previous manager was outside the country.
He is asking for 3 months' salary & 3 months' arbitrary compensation.
What can our company do?


Oct 18, 2018
918
The responsibility of a partner in a limited liability company
3
Q: Hi Sir,
I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company.
We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss.
They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money.
Now, I need to get out of this mess as I was not involved and they were not sharing any updated records.
Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors.
I am afraid to come to Dubai to discuss as the company sponsor is in touch with them.
They can put me in trouble in order to get my share.
Please advise!

Feb 4, 2020
2793
What is expected to happen after winning a commercial case for debt recovery?
2
Q: I have filed a commercial case for debt recovery against the defendant company in Dubai. I have won the case in my favor.
The defendant company's eventual owner and the managing director are Indian ex-pats based in Dubai since more than 30 years.
He is currently in Dubai and I strongly know and believe that he cannot run or leave Dubai in the immediate to long term so he will have to face the execution filed against him.
What is expected to happen (what will be each stage) after we file for execution and the expected timeline I will expect in due course before I can finally recover our funds
Please anyone can guide me in detail and in full explanations.
Thank you!

Apr 16, 2021
520
How to convince the execution judge to put a travel ban on company manager?
1
Q: Is it possible to put a travel ban on the manager of a debtor company in a civil execution lawsuit?
I asked for a travel ban on the manager of a company.
The judge refused because the identity of the manager was not declared in the trade license (But it shows in the company MOA and some final verdicts issued by the court).
I then filed a grievance against the execution decision.
But the grievance verdict was that I cannot pursue a manager to pay unless I prove mistake, fraud or deception by the manager.
So, is it still possible to put a travel ban or detention on the company manager due to the default of payment of the company, even without proving any mistake, fraud or deception of the manager?
Ref Article 186 of Cabinet Decision No. 57 On The Implementing Regulation Of Federal Law No. (11) Of 1992 On The Civil Procedure Law. The law allows travel ban/detention of any legal representative.

Oct 18, 2021
1398
Legal blog
1 available 1 • View allThere is an execution against me in the UAE; what should I do? 39
There is an execution against me in the UAE; what should I do? How do I cancel the arrest warrant and summons, and how do I deal with the travel ban? Dear readers, we present this simplified article, in which we explain the implementation procedures briefly, how the defendant can deal with them, and the options he can take to enforce the judgment smoothly while decreasing the damages of implementation as much as possible.
Apr 18, 2024
3880
Laws & Regulations
1 available 1 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29529

Other answers by
522 522 answers •
View allThe maximum notice period employers can put in the contract as per the new labor law 0
Our internal contract has a notice period of 3 months from both parties. In the new labor implementation, only one month's notice is required for less than 5 years of service.
Please advise if we can follow our internal contract since the position is very curtailed and the organization will not be able to replace the position within one month.
Sep 8, 2022
345
Annual leave salary calculation as per the new labor law 0
Dear sir/madam,
Annual leave salary calculation as per the new labor law.
Can you please clarify the correct annual leave salary rules?
Some say it is basic + HRA for the month you will take off, others say it is full salary, and somewhere I read it is basic + HRA (annual leave salary) plus the normal salary you get.
Can you please clarify?
Thanks for your valuable time and kind assistance!
Sep 7, 2022
2649
I want to dismiss an employee under article 120. Do I need to pay him the EOSB? 0
I want to dismiss an employee under article 120/44 of MOHRE labor law. I want to know if we need to pay him his complete end-of-service benefits.
Jul 26, 2022
366
What happens WPS system if my employer deposited less than my salary? 0
Dear Madam,
My salary is 5000 in WPS, but in June, my company deposited 1000 by mistake.
Is there any chance to rectify or deposit the 5000 dirhams again?
Jul 13, 2022
357
How to appeal the labor judgment if the court did not approve all my dues? 0
My employer has not paid my salary for 8.5 months. I went to the labor court, and was referred to Dubai Courts.
The judgment came and I did not receive the full claim including salaries and 3 months' compensation.
Please advise whether I can go for an appeal and what will be the time for execution.
Need your valuable advice.
Jul 9, 2022
394
Get quotes from lawyers
Find the right lawyer for your legal needs.
Submit your request and get multiple
competitive offers from
qualified lawyers.
Popular Q&A
View all Looking for something else?
Ask for advice from a lawyer