Q: My associate was working as CEO (employee) in an entity in Sharjah. The owner has left the country with unsettled bank loans. (1) Can the Bank put the CEO in jail charging him that he was operationally responsible for the bank borrowings? (2) What defence my associate can get from the UAE Law?

Q: My ex-colleague was an employee in a Sharjah Hamriya Free Zone entity owned by an Indian expatriate. During his tenure as Finance Manager, he was a co-signatory to bank cheques. He has not signed any guarantee cheques or loan agreements with banks except as a witness to the document signed between the bank and the owner. He has resigned in Dec 2015 and since then the owner of the business has run away from the UAE. Now my colleague is under threat from the banks which have provided banking lines to the entity that he will be sued as he was also responsible as Finance Manager of the entity. Want to know can the banks include my colleague as a party to the case? If yes, what would be my colleague's liability? Can the bank file a criminal case & enforce a travel ban on my colleague?

Q: Hello Sir, I would need legal representation in an expected cheque bounce case with banks due to unpaid EMI for company loans. Total value will be AED 1.9 Million with 5 banks. Largest is AED 900K and two are below 100K. Please advise how to proceed.

Q: I took a loan of around AED 350,000 in Sept or Oct 2016 (24 out of 48 instalments have been paid and the outstanding amount is AED 248,585). Last year in Aug 2017, I was made redundant from my job. The gratuity which was transferred to the bank was not released to me. That amount took care of my instalments till Sept. 2018. The recovery person called me for the Oct. instalment but I told him I do not have a job or money to pay him. I read in the news that since last year jail term has been abolished for expatriates. I need to know if the bank files a case against me how much do I need to pay as a fine and what is the worst the bank can do about it. I had a previous loan with the same bank and then I topped it up. Can you tell me the fines for both Dubai & Abu Dhabi as I am not sure which region they will file the case? The bank is Dubai based but I got the loan in Abu Dhabi.

Q: Dear Sir / Madam, Greetings from Dubai! Our commercial group has been established in Dubai since 1963. Due to the recent turbulence in the economic conditions in the region, the banks have withdrawn the support for our financial facilities provided to our company which has lead to default in honouring our commitments. While we are trying to manage the situation, the banks have filed criminal/civil cases against our companies. Let me know if your esteemed organization can help us amicably restructure the outstanding debt with the bank so that we can continue to focus on reviving our business. Thanking you!

Q: What happens if you are not able to pay any money even after the judgement/execution of a civil case? If there are no assets that can be claimed? There were a genuine business loss and no money to settle with the bank/court. Please advise

Q: We have an LLC company in Dubai for the last 12 years. We have bank liabilities with one of the UAE banks for which our sponsor has given a personal guarantee. To remove his personal guarantee he has agreed to make a partial settlement of the loan but needs confirmation from the company that when we win one of the arbitration cases and money which we get in Dubai court, he should have first right over that receivables from Court. The receivable amount will be more than what he will pay to banks. 1) Can we create such an agreement and will Dubai court accept this? 2) What is the procedure we can do and give him the confidence to pay money to the bank?

Q: Dear sir/madam, I have received an SMS from the Dubai court that a travel ban has been issued to me due to cheque execution. What should I do?

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.

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.