Questions & Answers
Partners liability for bounced cheques issued by the director
I am a 49% shareholder in a 10-year-old LLC Company. We have a separate Managing Director that has no shareholding in the company.
I was out of the country for an extended period of 5+ months and recently returned to the UAE. 2 weeks after my return, I discovered that salaries had not been paid to staff for the month of July.
I queried the Managing Director who was away on annual leave at the time. He told me the company was expecting money in.
I then checked with the accountant who told me the company financials were in a dire situation and updated me on receivables and payables. The Managing Director then proceeded to serve 4 weeks notice to resign.
After this, I discovered that several company cheques that he had written to suppliers had bounced and were in fact PDC's, some of which had been issued several months ago.
My questions are:
1. What recourse do we have against the MD for these liabilities?
2. What would be our best course of action to minimize shareholder liability?
Hello there,
With reference to your inquiry, kindly be informed that we can assist you via filing the necessary lawsuit (case) against the said managing director.
But in order to do that, we need to review all the relevant documentation, starting from the MOA & AOA.
If you do require our services, please don't hesitate to contact us via (elkhatib.legal@outlook.com).
Kind regards.
