Questions & Answers
Questions & Answers
7 available 7 • View allLiability of company director for a bounced cheque issued by the general manager



4
Q: My brother was the director of a company in Dubai with 16 per cent shareholding with 5 other partners. They had a general manager who had signing authority.
The general manager signed cheques worth AED 7 million and disappeared. My brother lives in Kuwait. What is the impact of the bounced cheque on my brother?




Dec 30, 2020
1252
The responsibility of a manager who is not a partner for cheques
2
Q: Hi,
My name is in a UAE license as a manager with 0% percent share but with powers to act on behalf of the company.
I didn't sign any cheques. The landlord filed a civil case against the company for not paying rent.
The owner is not bothered. Anything will happen to me?

Jan 14, 2021
604
Legal status of a company general manager if the owner fled for debts
1
Q: Dear Sir,
I had a General Manager visa from an FZE company in Hamriyah Free Zone. In 2011, the owner of the company fled the UAE due to financial issues.
I was not in the UAE at that time as I used to travel once every 6 months only. When I got the news that the owner fled the country, I did not travel on that visa and let the visa expire.
I have not been to the UAE after that. I want to come back to the UAE to start a business but I do not know if have an immigration ban or blacklist since my employer fled the country.
Can you please advise if the General Manager has any issues if the owner of an FZE company fled the country due to debts?
Thanks in advance.

Jan 19, 2021
1036
The responsibility of a resigned general manager while his name is still on the trade license
5
Q: Dear sir/madam,
I am a general manager of an insurance company. However, I don't have any equity and I am not a shareholder. I am not authorized to sign a cheque and I am not a signatory in any of the bank accounts. Partners issue the cheques.
If the company has debts, will I be responsible or will it be the partner's/owners' responsibility?
I resigned from my company and have taken resignation acceptance from all the 3 partners on the company letterhead. I have completed my notice period. However, they need one more month to change my name on the trade license.
In case of any legal cases, would I be responsible?

Oct 22, 2022
466
As the manager with 0% ownership on the license, am I liable for a returned cheque?

1
Q: Dear Sir/Madam,
I work in Umm Al Quwain for a construction company. My name is on the license with 0% as the manager, and it's a sole proprietorship license.
If there is a case involving a returned cheque or a civil case against the company, will I be held responsible?
I am currently facing a travel ban, and I am employed on a salary basis with the company.


Jan 17, 2024
94
If legal issues arise and the trade license mentions the manager and the owner, who is responsible?
1
Q: The trade license of a company mentions both the manager and owner.
Who is the authorized person, if any legal issues arise?

Feb 16, 2024
407
How can I handle bounced cheque liability with my closed LLC company?



1
Q: Dear Experts,
I had an LLC company in Dubai, and one of my suppliers filed a case against my company due to a bounced cheque. The cheque was signed by the former finance manager (who had POA just to sign the cheques).
Now, this supplier has made the employee a party in the case alongside the company and imposed a travel ban on the signatory (finance manager). My company has been closed for the past year.
I need your expert advice on this matter. First, I want to secure the release of my former employee, and then I need to know how to protect myself from this liability, as the company is closed and I do not have the funds to settle the liability.
Please Advise!




Aug 13, 2024
150
Legal blog
2 available 2 • View allBounced Cheques in the UAE: What You Need to Know in 2024 291
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.
Oct 15, 2024
221907
The Duties and Obligations of the LLC Manager in the UAE 22
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.
Mar 25, 2020
19833
Laws & Regulations
3 available 3 • View allFederal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
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.
Sep 7, 1993
33000
Federal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29524
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3528

Premium
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278 278 answers •
View allWhat are the legal consequences of my partner's voluntary withdrawal from our company? 0
Hello,
My partner voluntarily withdrew from our company which we established in Dubai, United Arab Emirates.
We established this company on July 1, 2024. Until now, there is no income or revenue. What is the legality?
Apr 9, 2025
66
Getting my children back from the UAE after my ex-husband took them to avoid divorce 0
Hello,
I'm in Canada, and I filed for divorce. My husband, who owns a real estate company in Abu Dhabi, kidnapped our children and took them to the UAE to avoid the divorce and force me back to him.
My children are twin boys, 8 years old, and a 10-year-old girl. What can I do?
I want to follow them and take my children back, but he says his local Emirati connections will file criminal cases against me and have me jailed if I go there. What can I do remotely?
Does the UAE return kidnapped children to their mother? In the UAE, a guardian cannot legally kidnap their own child; what does this mean for my case?
If I report him, what happens to my children? Will they be held until I arrive to take them?
Mar 3, 2025
63
I have video recording of my husband beating me. Can I show this in the child custody hearing? 0
I have a video recording of my husband beating me in our garden.
Can I show this in the child custody hearing?
It was filmed with my phone camera
Mar 19, 2025
49
Can a DTC holiday home permit be used as proof that my landlord re-rented the property after evicting me? 0
Hello,
My landlord vacated the property with 12 months' notice, stating he would live there himself.
However, he started renting the property through the holiday homes system.
Is a permit issued by the DTC for a holiday home valid proof to prove that he is renting and to claim compensation?
Mar 18, 2025
45
Can I file a case against a friend for privacy breach if he claimed I scolded him for his act? 0
On Jan 2, 2025, one of my close friends did a privacy breach and recorded me and my van in some specific place.
On Feb 5, when I called and asked him why he did this to me, he went and gave a complaint that I scolded him and threatened him.
The same case was later closed by the PP when we negotiated outside the station and apologized.
At this juncture, can I file a privacy breach case against him, which happened on Jan 2, 2025, and on Feb 5 I scolded him only for the privacy breach that happened on Jan 2?
Mar 18, 2025
56

Premium
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1543 1543 answers •
View allHow much time do I have to start paying after the verdict in the appeal court? 0
Hello,
How much time do I have to start paying after the verdict in the appeal court?
And what's the probability of freezing my account or traffic file if I’m paying?
Apr 11, 2025
69
What does Cabinet Resolution No. 1 of 2022 mean with exempting supervisory roles from the provisions of the Labour Law? 0
Dear colleagues,
According to Article 15 of Cabinet Resolution No. 1 of 2022 (“Executive Regulations”), employees occupying supervisory roles are exempt from the provisions of the Labour Law and the Executive Regulations in relation to maximum working hours only if they possess powers equivalent to those of the employer.
Could you please clarify what is meant by "if they possess powers equivalent to those of the employer"?
Currently, we have heads of departments who report to the directors. Will they be eligible for overtime?
Also, those who have a POA to sign contracts will they be eligible?
Or, those who temporarily replace the CEO while he is out, will they be eligible?
Apr 10, 2025
60
Can I stay home if my boss doesn’t pay my salary on time? 0
Hello,
Can I stay home if my boss doesn’t pay my salary on time?
Apr 10, 2025
55
نزاع بين شركاء مفوضين بالتوقيع على المعاملات البنكية للشركة بشأن شيك وتحويل أموال 0
زوج وزوجة، الزوجة مالكة لشركة بنسبة 50% ولديها شريك أجنبي يملك بنسبة 50%. الشريك مخول بالتوقيع في كافة المعاملات البنكية للشركة والزوجة كذلك لها ذات الصلاحية.
بعدها، غاب الشريك الأجنبي عن الشركة وسافر. ومازالت الشركة نشطة والعمال لايستلمون رواتبهم والشريك قام بتحويل جميع أموال الشركة إلى حسابه الخاص دون علم الشريك الآخر.
ثم تحصلت الزوجة الشريكة على شيك، فقام الشريك الأجنبي بفتح بلاغ خيانة أمانة واستلم زوجها الشيك.
فما هو الحل القانوني من ناحية جزائية وتجارية؟
Mar 27, 2025
69
What are the penalties for employing workers without a visa? 0
Hello,
Kindly let me know the statutory provisions relating to the penalty for letting employees work without a visa and the amount of penalty to be paid by the employer.
Apr 9, 2025
51

Other answers by
249 249 answers •
View allAssistance with clearing a police case and lifting a travel ban in the UAE 0
Good day!
I have rental disputes and got a settlement plan 8 months ago.
But I did not pay the settlement because at the moment of applying for the settlement plan, I had a job offer and lost it because of the travel ban and the visa could not be processed.
I have another personal police case where I already paid an amount of 18,000 and the claim was 40,000 dirhams. Now that I did not continue paying, the plaintiff put the case again.
I have another offer letter now and I want to get a clearance certificate within 48 hrs, or else I might lose this job as well.
Kindly advise
Sep 7, 2022
314
I bought a new vehicle from the dealership with a hidden defect. What can I do? 0
I bought a new vehicle from the dealership [-----] and after 5 min of using the car, an alert popped up. Less than 24h later I informed the dealers of the issue.
After struggling with them about it, I finally brought the car to service at their company and they have confirmed the part needs to be fully changed.
I’m telling them I cannot accept a faulty car and demand either a refund or another vehicle. So far they’ve been less than cooperative.
Oct 5, 2022
242
How to know the judgment when the portal says "decided"? 0
Dear sir/madam,
There is a case against me in a commercial, full-jurisdiction court. Sorry if I'm getting this wrong. I have not participated in the case and on the advice of my UK lawyers, I have not been represented there in Dubai.
Upon checking the portal, it says a judgment was reached yesterday, but I can't see further details. So my questions are:
1) Do judgments happen behind closed doors or in front of the lawyers? (the plaintiffs have lawyers)
2) How long does it usually take for the verdict to be public and for me to see the outcome of the case?
The only thing it says online is the word "decided".
Oct 19, 2022
661
Getting deported from the UAE while the medical checkups are good. What to do? 0
Hi there,
I got deported from the UAE for failing medical but when I reached my country, I have done several medical checkups but everything is OK; HIV negative, no hepatitis B, etc.
I don't know if there was a mistake or a misfortune for me. I am wondering if they can allow me to come back to Dubai.
Sep 1, 2022
751
Is it mandatory to visit the CID in person to update my records? 0
Respected Advisors,
I have been involved in a few criminal cases since 2017, but all of them were cleared by this year. I have obtained release letters for all the cases from the public prosecution office through an online portal.
Recently, I also received my residence visa. After the visa process was completed, I applied for a PCC online. However, the request was rejected.
I contacted the 901 office, and they advised me to visit the CID. I arranged for a power of attorney to be granted along with all the necessary documents to update the system.
Twice I was told to come in person, but I am hesitant to do so because of my previous negative experience.
Could someone please advise me whether I must go in person or if the person holding the power of attorney can handle the process?
Thank you!
Nov 15, 2023
666
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