Questions & Answers
Questions & Answers
8 available 8 • View allLiability of Finance Manager for bank loans of the company
0
Q: My ex-colleague was an employee in a Sharjah Hamriya Free Zone entity owned by an Indian expatriate. During his tenure as Finance Manager, he was a co-signatory to bank cheques.
He has not signed any guarantee cheques or loan agreements with banks except as a witness to the document signed between the bank and the owner. He has resigned in Dec 2015 and since then the owner of the business has run away from the UAE.
Now my colleague is under threat from the banks which have provided banking lines to the entity that he will be sued as he was also responsible as Finance Manager of the entity.
Want to know can the banks include my colleague as a party to the case? If yes, what would be my colleague's liability?
Can the bank file a criminal case & enforce a travel ban on my colleague?

Sep 19, 2017
922
Liability of employee for the loan taken in the company's name
3
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
What rights and possibilities does the beneficiary have against the guarantor?
2
Q: What is the enforcement process of a personal suretyship?
My maid agreed in writing to be the guarantor of a private loan (AED 10,000 + AED 2,000 interest fees) for a principal debtor against the beneficiary.
The principal debtor left the country and is not available. What rights and possibilities does the beneficiary have against the guarantor?

Jun 13, 2021
281
Liability of the guarantor if the person who took a bank loan stops paying
2
Q: Please help me.
I signed as a guarantor for my friend in her bank loan and they asked me for a security cheque.
My friend was on a partner visa and now she is cancelled and cannot pay anymore. I gave my cheque already to the bank and signed as guarantor.
Is it possible that the bank can give me a case if my cheque is zero?
My friend is still here on a visit visa now. She doesn't pay her loan anymore. I am scared that I have a travel ban and case now.
Please give me clarification.

Oct 11, 2021
471
How to remove a travel ban imposed on a guarantor upon debtor's death?
3
Q: Hello,
I made a personal guarantee for my brother to get the bank loans. He was not able to pay the loans and a travel ban was imposed on us.
Now my brother died and still, we have civil cases.
Please how can the travel ban be removed?
Thanks!

May 1, 2022
392
هل يحق لحامل الفيزا السياحية أن يكون كفيلاً أو ضامنًا؟

1
س: مرحبًا،
أنا دخلت إلى دبي بفيزا سياحية وباقي منها شهرين.
هل يحق لي أن أكون كفيلاً أو ضامنًا ماليًا لشخص آخر مقيم؟
وشكرًا!


Oct 30, 2022
134
What should a guarantor do when the original debtor fails to pay?
1
Q: Hello sir,
I hope you are doing well!
I had unknowingly signed a personal guarantee of a loan taken by my husband for his general trading.
Now I am liable to pay the debts when my husband has defaulted even though I was not a partner or related in the company.
I am a housewife with no source of income and have no assets or even bank accounts in Dubai under my name.
How can the court instruct me to pay the debt?

Nov 27, 2022
222
A company forced an employee to sign a cheque as a guarantor. What to do?
2
Q: Dear sir/madam,
My company (Dubai mainland) forcefully made me sign as a guarantor in a cheque bounce case without telling me anything. Dubai Court has issued a travel ban because of this and now I cannot travel.
I am not the owner nor the signatory of the cheque.
Please tell me whether the guarantor can be changed to another person. If yes, what is the procedure? And how much will it take to relieve me from this?

Jan 17, 2023
195
Legal blog
1 available 1 • View allBreach of Trust and Debts as the Base of Corporate Crime 1
This article intends to give a brief idea of corporate crime, how it happens in the corporate world, the relevance of choosing the right legal action and mechanism.
Mar 26, 2017
1290
Laws & Regulations
3 available 3 • View allFederal Law No. (3) of 1987 Promulgating the Penal Code 29
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.
Dec 8, 1987
47896
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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
Federal 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
32998

Other answers by
77 77 answers •
View allCan the tenant exit the lease contract early after losing access to gas? 0
There was a gas pipe explosion in our building and the whole floor is unhabitable.
So we are located on another floor, gas usage was cut and had to rely on electric plates which takes longer time to cook and there is the fear of fire if left unattended.
Gas will be reinstalled after 3 months and we wish to terminate the contract early because we cannot use the gas which is one of the facilities we agreed for in the contract and we feel unsafe in the building because every now and then the alarm goes on.
They gave us an option to move to their other buildings but will even be farther from work plus the transportation costs will increase.
Do we have to pay penalty charges for a situation that is not our doing? We are already having heart palpitations whenever there’s an alarm?
Oct 24, 2019
410
Is it possible to terminate an employee due to her bad attitude 0
Good morning,
We have given an employee a final warning due to attitude and creating fights with employees.
Last time, she did the same thing after that she left the office early without informing the manager (she informed the owner of the company which is not the direct report) after that she was absent for 2 days without informing the same.
She sent a message to the owner of the company, but the owner did not reply nor approve her reason for being absent.
Is it valid that I serve her termination?
Thank you!
Oct 20, 2019
617
Filing a case for higher maintenance and possibility of travel ban 0
I'm an Australian non-Muslim expat resident for 10 years. My wife is the same, as are our three children, ages 19,16 (girls) and 11 (boy).
I have opened a case for divorce in Australia, and the hearing is in November. My wife wants to take me to court in the UAE regarding child maintenance.
I currently pay 35% of my monthly salary to my wife for child support. She wants more. I am due to leave the country next July permanently.
If she opens a court case, will that stop me from leaving? Has she got a case for more money?
Sep 12, 2019
1832
Removing a travel ban requested by the guardian of a child 0
My question is about my son who has a travel ban for the past four years.
I am a divorced woman and the travel ban is from his father. I want to move back to my home country as I don't have any emotional or physical support here.
My parents are old and would like to move back for good. I have tried discussing this matter with his father but unfortunately, the matter is still unresolved.
I am willing to let go of all financial support in order to go back. Please let me know if this can be resolved in any way.
Jul 30, 2019
5467
The impact of a company shareholder on closure decision by majority 0
Hi,
I am a partner of a Dubai based (mainland) company. Due to the financial restraints, the investor (shareholder) has decided to close the company.
Now, I want to know if they can do this without my consent as the sponsor 51% and partner 26% have decided this. My share is 24%.
Jun 27, 2019
728

Other answers by
25 25 answers •
View allA property is subleased without landlord's consent. How to evict subtenant? 0
Dear Consultant,
Good morning!
I have a rented property in Dubai. In March 2024, when I went to visit my flat, I found a subtenant inside. He informed me that he rented from "my tenant" and is paying on a monthly basis.
This occurred without my consent, and his cheques return unpaid. I have heard from my friend about many options to vacate my unit and sue the original tenant.
I would appreciate your advice on the subject matter as a consultant.
Many thanks!
Apr 11, 2024
111
إلغاء الاتفاق واسترداد المبالغ المدفوعة لشقة قيد الإنشاء 0
أود الاستفسار عن رسوم مقاضاة مطور عقاري اشتريت منه وحدتين عقاريتين.
تم دفع 30% من قيمة العقار + جميع رسوم دائرة الأراضي والأملاك ولكن منذ 7 أشهر يماطل المطور في تسليمي العقد. ولا أعتقد بأن المبالغ المدفوعة تم إيداعها في حساب الضمان.
أيضاً، المشروع متأخر والثاني لم يبدأ بعد مع أنه من خلال نموذج الحجز مذكور بأن عمليات الإنشاء بدأت والتسليم في ديسمبر 2019.
أريد رفع دعوى لفسخ العقد وإرجاع جميع المبالغ المدفوعة. هل الدعوى مضمونة؟
لا أريد تضييع الوقت في تقديم شكاوى لدائرة الأراضي والأملاك.
وأنا من إمارة أخرى وليس لي الوقت للذهاب إلى دبي للشكوى ومراجعتهم. أريد توكيل محامي مختص للانتهاء من الأمر.
Feb 10, 2019
2651
The possibility of appealing a jail sentence for bounced cheques 0
Hi,
I needed to know if the court issues a judgment of 2 or 3 months jail term in cheque bounce case, is there a way to reverse the judgment or avoid the sentence? Possibly if the creditor withdraws the case?
I have received a judgment of a jail term of 2 months for AED 1 Million security cheque bounce against a loan that is 75% paid off and a 3 months jail term for multiple cheques to a single supplier valued at AED 48,000.00 approx.
What can I do avoid jail terms and wondering how AED 48k cumulative value would result in jail term?
Appreciate a solution for this.
Thanks.
Oct 7, 2018
3822
هل يعتبر إنهاء عقد العمل غير محدد المدة فصلاً تعسفياً؟ 0
تحية وبعد،
إنهاء عقد عمل موظف غير محدد المدة بدون سبب، هل يعتبر تعسفي؟
Oct 2, 2018
1202
Requirements and procedures accompanying application to corporate loan 0
IS THIS TOPIC FAMILIAR TO YOU ?
1) A company from the UAE has a subsidiary abroad (100% of the shares).
2) The subsidiary would like to contract an investment loan and the bank is asking for a surety contract issued by the mother company.
3) A legal opinion is necessary to basically present:
3.1) Which conditions the surety contract should comply with in order for the surety contract to be valid and enforceable?
3.2) If any limitation (territorial, financial limit, time to claim, competences, signing procedure that has been followed, or any other, etc) is present in respect of a surety contract assumed by a company from the UAE toward a foreign bank while supporting its subsidiary from abroad.
3.3) What is the legal procedure that applies when enforcing a surety contract that is a related to a subsidiary from abroad (actions / estimated cost / estimated time)?
Jun 6, 2018
581
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