Q: Hi, I run a trading company and we have 2 partners. My name is also in the license as a partner. 1. If the other partner ran away from the company with money, will I be responsible for the supplier payments & other dues if anything remains on the company because I am the other partner? Will I face legal action if they file a complaint? 2. If the other partner is signing the cheque on behalf of the company, and the cheque bounces for no money, will I be responsible for that because I am also a partner? Can they put a cheque bounce case for me although I didn't sign the cheque?

Q: 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.

Q: Hi, I would like to ask about the company, where I am working for the last 5 years. We are W.L.L. company and the local partner was a sleeping partner. The other partner was Indian and he took a loan from the bank on the company's name and used it for his personal use and drained it in other business. He increased the creditors and now he left the country. At this situation, the local partner comes to know about his intention of not coming back. Now, all the responsibility falls upon the local partner's shoulders. The company has creditors of around BD 140,000 / and a bank loan of BD 160,000/, which is impossible to pay by the local partner. For running business outstanding, mostly companies has cheques issued by the Indian partner (Local partner is not authorized to sign any cheque according to MOA), and the bank has guarantee papers signed by the local partner. Can you please advise how we can save the local partner and file a case against the Indian partner?

س: زوج وزوجة، الزوجة مالكة لشركة بنسبة 50‎%‎ ولديها شريك أجنبي يملك بنسبة 50‎%‎. الشريك مخول بالتوقيع في كافة المعاملات البنكية للشركة والزوجة كذلك لها ذات الصلاحية. بعدها، غاب الشريك الأجنبي عن الشركة وسافر. ومازالت الشركة نشطة والعمال لايستلمون رواتبهم والشريك قام بتحويل جميع أموال الشركة إلى حسابه الخاص دون علم الشريك الآخر. ثم تحصلت الزوجة الشريكة على شيك، فقام الشريك الأجنبي بفتح بلاغ خيانة أمانة واستلم زوجها الشيك. فما هو الحل القانوني من ناحية جزائية وتجارية؟

In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.

Sometimes this seems very simple to incorporate a company in the UAE, however, investors must seek professional advice before taking this important business decision to avoid any future legal implications.

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.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.