Q: Hi Sir, I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company. We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss. They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money. Now, I need to get out of this mess as I was not involved and they were not sharing any updated records. Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors. I am afraid to come to Dubai to discuss as the company sponsor is in touch with them. They can put me in trouble in order to get my share. Please advise!

Q: I’m a 50% shareholder and director in an FZ-LLC company in Dubai Development Authority. One of our employees made an unpaid salary case against us and won it in court. We have appealed the decision. My partner, the owner of the remaining 50% and a local has his name as the general manager of the company on the license. Since our company is not in a financial position to pay these dues, I want to understand what my maximum liability will be. A quick reading online shows that the court can place travel bans on the general manager and hold him personally liable. Does the liability extend to me as well? Are there any other liabilities?

Q: I am a partner in an LLC company that has faced many labor cases and judgments by the court. In the current situation, the company is not able to pay, will there be any travel ban on the partners? Thanks!

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.

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.