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
1316
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
654
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
1105
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
539
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
133
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
495
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
207
Legal blog
2 available 2 • View allBounced Cheques in the UAE: What You Need to Know in 2024 292
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
223857
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
20138
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
33126
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
29628
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
3587

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How can my kids learn about their father's condition without contacting his family? 0
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Can my husband take our 2-year-old daughter abroad without my consent? 0
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