Q: Hi, During my employment with my Company, I had signed a few guarantee for a finance taken by the company amounting to more than AED 100 Million. As I was the signatory to that particular Bank account I was asked to sign the security Cheque. I have resigned 6 months ago and the cheque is still with the bank; will I be held responsible in the event the bank takes legal action if the company does not repay the loan?

Q: Hi Sir, I have been working with a company as a partner on the trade licence and working for them as an employee. I am not in the company anymore, however, during the business with them I gave a blank cheque as a security for the investment and I gave it based on trust. Now, he wanted to take personal revenge and deposited my cheque by putting an amount of AED 1 Million on that and the cheque bounced. I don't know what to do now and I need advise on this, please.

Q: I would like to file a case and claim damages for mental agony. In 2002, I had given a blank undated and unnamed cheque against a signed document for a commercial transaction. The transaction was completed and the cheque was not returned. In 2005, the said cheque was presented and it bounced. The cheque was handed over to a 3rd person (my ex-employer). This 3rd person handed over the cheque to a 4th person whom I do not even know. The 4th person deposited the cheque and got it bounced and filed a police complaint. This 4th person has apologised for his action. I forgive him but want strict action against the individual/company to whom I had given the cheque. The details were filled in as "Cash" on a cheque and only the signature on cheque was mine. Our family was on vacation in India with me in 2005, were forced to stay back in India, till date. The whole family and professional life destroyed. In 2016, thru friend in DXB, I got the complaint cancelled from Public Prosecution Office.

Q: Hi, I had given a security cheque of AED 5000 on behalf of a company I was working for as at that moment the owner was in the process of changing the bank account. Therefore on goodwill, I had given my personal cheque. I left the company and now the company is not paying the service provider and therefore the service provider has deposited the cheque even though I clearly asked them not to, as I am not part of the company any longer. I have now asked the service provider to return back my cheque and to send their collections team to the head office to get their payment sorted. Is there any way I can take this matter to the police as the company is still running and the owner is still around? All invoices were issued under the company. I would much appreciate your assistance on this matter!

Q: Hello, My friend has a ban from traveling outside the UAE due to unpaid mortgage payments. She is trying to sell the property (an apartment worth more than the remaining mortgage value) with the bank agreement. The bank told her that if she presents an MOU that someone wants to buy the apartment, they would lift the ban. My friend is asking me to sign the MOU as a buyer, she herself wouldn't sign the MOU but send it to the bank to get the ban lifted as she needs to travel urgently (her father is in the hospital dying of COVID). I do not intend to buy this property nor do I have the funds to do it. I am reluctant to sign this document, even though I want to help my friend. Would I be held accountable and have to pay a penalty fee of 10% of property value if I am the only one signing the MOU? What if the broker also signs it but my friend (the owner) doesn't? Could the bank turn to me if they find out I am not truly interested in buying the property? Thanks for your help!

Q: Hi. One of my friends has filed a cheque bounce execution case against me for AED 63000. I paid him AED 10,000 already. He kept my original passport and was not willing to give it back unless I pay him some more money. Also, his lawyer calls and threatens to get detention order issued against me if I don't pay immediately. Not sure what to do. I am willing to pay. Paid 10k also but can't pay all together as I was jobless for many months.

س: السلام عليكم، كتبت شيكات لصديق من أجل مساعدته لاستئجار محل على أن تُستبدَل عند فتح حساب بنكي خاص به، لكنه تمنع وهرب خارج الإمارات. صاحب العقار يطالبني بقيمة شيكات مرتجعة. هناك ٣ شيكات مرتجعة قيمة كل شيك ٨٤٠٠٠ درهم. ليس لي أي منفعة من العقار؛ مجرد أنني أعطيت شيكات بحسن النية لحين الاستبدال. تواصلت مع صاحب العقار وأبلغته أنه يجب عليه تنفيذ إخلاء المحل وإيقاف صرف الشيكات، لكنه يرفض. صاحب العقار أقام دعوى تنفيذ يطالب بتسديد مبلغ ٨٤٠٠٠ درهم ثم دعوى أمر على عريضة ومنع السفر بحقي. يطالب بمبلغ ١٨٨٠٠٠ درهم ومنع السفر. كيف أستطيع إيقاف ما تبقى من الشيكات حتى لا يصبح المبلغ أكبر والقضية تتوسع؟ ولكم جزيل الشكر!

Q: Dear Sir/Madam, My cousin sister asked me to use my EID to set up water and electricity for her apartment in Sharjah in 2018 for two months while her ID was being renewed. She called me in 2019 to cancel the water and electricity. The apartment management assured me that the checks and everything would be under my cousin's name, and that's how it was for the past 5 years. My cousin had bounced checks, and since the apartment management knew about the agreement, nothing was done on my behalf. New management took over this year and placed a travel ban on me for failing to pay my rent, even though I have never lived in that apartment in Sharjah. For the past few years, I have been living in company accommodation. How can I get justice since I have a travel ban?

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

An interview-format article covering the topic of the amendments to the company law in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

يلعب الشيك دوراً مهماً في الحياة اليومية سواء في ميدان المعاملات التجارية أو في ميدان المعلامات المدنية باعتباره أداة وفاء والتزام تحل محل النقود في التعامل بين الافراد. ونظراً لهذه الأهمية فقد أصبح أكثر الأوراق التجارية انتشاراً وتداولاً بين الناس، على الرغم من حداثته نوعاً ما. فالشيك لم يبق كما كان في بداية عهده أداة لسحب الودائع المصرفية لحساب الساحب ذاته، بل أصبح أداة وفاء تحل محل النقود سواء على النطاق الداخلي بالنسبة للمعاملات التي يقوم بها الأفراد داخل الدولة فحسب وزادت أهميته.

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.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.

The provisions of this Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law, known as the "New UAE Penal Code", governs criminal actions in the United Arab Emirates. The New Penal Code repeals the previous UAE Penal Code (Federal Law No. (3) of 1987 Promulgating the Penal Code).