Q: The question is connected with an LLC company from Dubai. I am the only employee. I am not sure if I can use Director titles for people not listed on the company organization chart (not employed). I need to sign an agreement with 2 signatories on our side. The second signatory is a contractor from abroad (contracted through a Polish/European entity). Can I give him a Power Of Attorney, so based on Dubai law - can he sign documents on behalf of the LLC? Which title can we use for him as a person which has a Power of Attorney from LLC or me: Managing Director OR Account Manager? Can we create a power of attorney only in English? Is it mandatory to use Arabic?

Q: I am a 49% shareholder in a 10-year-old LLC Company. We have a separate Managing Director that has no shareholding in the company. I was out of the country for an extended period of 5+ months and recently returned to the UAE. 2 weeks after my return, I discovered that salaries had not been paid to staff for the month of July. I queried the Managing Director who was away on annual leave at the time. He told me the company was expecting money in. I then checked with the accountant who told me the company financials were in a dire situation and updated me on receivables and payables. The Managing Director then proceeded to serve 4 weeks notice to resign. After this, I discovered that several company cheques that he had written to suppliers had bounced and were in fact PDC's, some of which had been issued several months ago. My questions are: 1. What recourse do we have against the MD for these liabilities? 2. What would be our best course of action to minimize shareholder liability?

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.

س: مرحبًا، أنا مواطن من دولة عربية وعملت في دبي. أثناء عملي سجلوني بالشركة بصفة مدير عام ومفوّض بالتوقيع مع تثبيت اسمي على رخصة الشركة. علمًا بأن الشركة ذات مسؤولية محدودة. خلال تلك الفترة وقّعت على شيكات وتم صرفها من قبل المستفيدين ولكن بعد ذلك قدمت استقالتي وألغيت إقامتي في الإمارات وقدمت طلب إلغاء اسمي من رخصة الشركة بصفة مدير عام. بقي شيك واحد من الموقَّع عليهم غير مصروف وهو 21 ألف درهم بدل إيجار مكتب. لم يُصرَف الشيك من البنك بسبب عدم وجود الرصيد لصرفه؛ علمًا بأنني غادرت البلاد في هذه الفترة وألغيت إقامتي ولكن استغرقت الشركة 4 أشهر لإلغاء اسمي من الرخصة واستبداله بمدير آخر. كما أنه هناك شيكات أخرى أصدرتها الشركة مُوقَّعة من مفوِّض آخر بالتوقيع ولم تُصرَف حتى الآن. من الواضح أن الشركة عليها التزامات مالية أخرى ولم يتمكن الشركاء من حلها. علمًا بأن الشركة قد أغلقت دون إعلان إفلاس. أرغب في الاستفسار عن الالتزام القانوني بحقي بخصوص الشيك الموقَّع وأي التزامات قانونية أخرى مترتبة على الشركة وارتباطي بها. في حال سفري إلى السعودية أو أي من دول الخليج، هل يترتب على ذلك أي ملاحقة؟

Q: السلام عليكم، هل تحمي تصفية الشركة ذ.م.م المدير العام من تنفيذ شيكات أوامر أداء كونه هو الموقِّع بالنيابة عن الشركة قبل التصفية؟

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.