Q: Hi, During my employment with my Company, I had signed a few guarantee for a finance taken by the company amounting to more than AED 100 Million. As I was the signatory to that particular Bank account I was asked to sign the security Cheque. I have resigned 6 months ago and the cheque is still with the bank; will I be held responsible in the event the bank takes legal action if the company does not repay the loan?

Q: Hi Mr Younis, I require help to sort out my father's legal issues pertaining to a company he had. There are dues with a bank in the UAE and his partner who was also a signatory on the cheques has managed to remove his cases and has left my father to deal with the liabilities albeit he was the one who misused the company funds. I have two questions: 1) How can someone who was a partner of a company absolve themselves of al legal recourse albeit their signature is on all bounced cheques? 2) Would your law firm be able to help with getting the cases resolved and getting my father's business partner take the responsibility for his share of the liabilities? Thank you

Q: Hi Rajasree, I am trying to seek help for my brother's business in the UAE which is under financial distress right now and some cheques have bounced. Additionally, labour payments were not done for the last 3 months. His health deteriorated due to the stress and he left the country about 1.5 weeks ago. We would like to file for bankruptcy and liquidate the business. Please let me know if your firm can help with this. Thanks. Best regards, A.Dec

س: كانت زوجتى تعمل محاسبة لإحدى الشركات فى الإمارات، ثم تمت تصفية الشركة. فوجئت زوجتي بوجود ٣ قضايا عليها بعد مرور 5 سنوات على إغلاق الشركة.

س: لدينا شركة ذات مسؤولية محدودة بدبي وهي مدينة بموجب عقود مع عملاء وديون أخرى لشيكات مستحقة الدفع. لا توجد أموال طوال العام المالي 2019 وحتي هذه اللحظة مع العلم أننا كنا وما زلنا نحاول إخراج الشركة من الأزمة وضخ أموال من جيوبنا الخاصة أملاً في استقرار الوضع المالي، ولكن حين جاءت أزمة كورونا، زاد الامر سوءًا. كيف نتصرف عندما نواجه دعاوى قضائية؟ وما الحل؟

Q: For a business loan, a cheque has been issued on behalf of the company and is signed by its manager for 557000/-. The company now is under liquidation (an order is issued by the court). Can the bank present the cheque to the police once it bounced, subsequent to the company's failure to pay the installments? If yes, under the above circumstances, what happens? How much fine it may attract from the prosecution other than a civil case by the Bank? Kindly advise!

س: السلام عليكم، أنا مدير وشريك بنسبة ٢٠% في شركة ذات مسؤولية محدودة. الشركة متعثرة ماليًا بسبب عدم تحصيل مستحقاتها ووجود أحكام قضائية ضدها وشيكات مرتجعة. الشركاء يرفضون عزلي على الرغم من تقديم استقالتي ويرفضون إفلاسها. ما المسؤولية القانونية؟ وكيف أخرج من الشركة بدون عواقب قانونية؟

The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.

Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.

للشركات كما للإنسان، دورة حياة. وحيث يبدأ الشيء، فلا بد له من نهاية، ولا باقي إلا الله. وإنه حيث نظم القانون نشأة الشركة، وعقد تأسيسها، فإنه كذلك لم يغفل تنظيم قواعد حلها وتصفيتها، ذلك لأن هذه القواعد بالغة الأهمية والحساسية، فهي تنظم طريقة أداء ديون كافة دائني الشركة، وتحصيل حقوقها، وتوزيع الأرباح أو الخسائر على الشركاء بعد بيان ما لها وما عليها. ونعرض في هذا المقال لهذه الإجراءات بحسب ورودها في قانون الشركات الإماراتي بإيجازٍ غير مخل.

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.

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

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.