Questions & Answers
Is the manager of an LLC company liable for dishonored cheques?
In 2020, I was the manager of a company that had an office in a free zone in Dubai.
At the time, the partners did not have bank accounts/cheques in Dubai, and to make payments, 4 cheques from a third person were provided, who in addition to the 4 cheques, also provided an undertaking letter attached to the lease agreement.
We carefully pay this person the amount related to the lease, as well as the value of all cheques. However, this person did not honor the payment of the last cheque.
Now the free zone has opened a case against the company for the non-payment of rent.
My question is, will the company be held responsible?
If the company is held liable, am I as a manager liable in some way? And will I be responsible for paying this personally?
The company no longer exists and I am the only partner who still lives here, in addition to having been the general manager.
Yes, the company and its legal representative (the manager) will be held responsible.
You said the last cheque has been transferred to the third person in order to pay the rent, is it correct?
As we understand you are the General Manager and have signing authority.
The cheque which has bounced was issued by your company account. Right?
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