Q: 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!

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!

Q: I did partnership in LLC business with one Indian last year. Recently I asked him to return my investment as he was not giving any reward of my investment. He agreed to return it. But now he is absconding because he owes some amount to an old partner who filed a police case against him. What should I do now to protect my investment or to avoid further loss? My 2nd question is: which percentage of shares will apply in case of loss? Trade license shows 15% my shares.

Q: Good day, Please, in what aspect can family matters bring about a travel ban to the UAE?

Q: Dear sir/madam, I am a partner and a manager of a Dubai-based LLC. We lost a court case against our previous employee with 100k. The company does not have money to pay. I asked two lawyers if I am personally liable, one lawyer said no, and the other lawyer said that the judge can even arrest me or place a travel ban on me. I had the full authorization of any documents, bank transactions, or business activities. Everything was 100% on me only. Now I am totally lost on which lawyer to trust and to believe. Could someone kindly get back to me with a third opinion?

Q: Is the shareholder liable if a labor court judgment is against the company?

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.

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.

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).