Q: My company (Dubai mainland) forcefully made me sign as a guarantor in a cheque bounce case… A: You can appoint a lawyer to prove the bad faith of the company and that they forced you to sign. After that, the company is obligated to provide a guarantor and the ban is removed from you…

Dear questioner, You can appoint a lawyer to prove the bad faith of the company and that they forced you to sign. After that, the company is obligated to provide a guarantor and the ban is removed from you.

A company forced an employee to sign a cheque as a guarantor. What to do?

Questions & Answers

Questions & Answers

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Liability of the guarantor toward creditors in the UAE

Q: Hello, I signed as a guarantor for my brother for a company loan he took, I was a partner. However, my brother has left the country 2 years ago. Now, I have a civil case on me and the court and bank ask me to pay the amount of AED 450,000. Please advise, what happens if I am unable to pay this money?

Oct 21, 2018

4825

Liability of employee for the loan taken in the company's name

Q: I have taken a loan for a company which I was working as an Accountant. Whether I am liable for such a loan for the company? The bank has given the loan in the name of the company and the bank has taken a security cheque from my employer. In such a situation, whether any GCC ban will be there as I have left the country also?

Mar 26, 2017

3830

Liability of a guarantor after the debtor fled the country

Q: Hello I signed as a guarantor for a person's company loan for AED 500,000. The person is no longer in the country and now there is a civil case on me. What is the penalty or jail term I would be looking at? If I go through the jail term, is the outstanding amount is also cleared?

Oct 9, 2018

7462

Laws & Regulations

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Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

Dec 15, 1985

148342

Premium

Khaled Ebid

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