Questions & Answers
Questions & Answers
3 available 3 • View allIs the manager of an LLC company liable for dishonored cheques?


2
Q: In 2020, I was the manager of a company that had an office in a free zone in Dubai.
At the time, the partners did not have bank accounts/cheques in Dubai, and to make payments, 4 cheques from a third person were provided, who in addition to the 4 cheques, also provided an undertaking letter attached to the lease agreement.
We carefully pay this person the amount related to the lease, as well as the value of all cheques. However, this person did not honor the payment of the last cheque.
Now the free zone has opened a case against the company for the non-payment of rent.
My question is, will the company be held responsible?
If the company is held liable, am I as a manager liable in some way? And will I be responsible for paying this personally?
The company no longer exists and I am the only partner who still lives here, in addition to having been the general manager.



Sep 22, 2022
463
Liability of an LLC managing director through a power of attorney


3
Q: Hello,
I would love to ask for advice.
What is the liability of managing director, who is not mentioned on the trade license but has a power of attorney to act on behalf of the owner, sign contracts and documentation, deal with banks and UAE authorities, tax returns...etc?
We are talking about an LLC company in Dubai.
And would you recommend directors and offices liability insurance?
Thank you for your help.



May 8, 2020
1423
The responsibility of a resigned general manager while his name is still on the trade license
5
Q: Dear sir/madam,
I am a general manager of an insurance company. However, I don't have any equity and I am not a shareholder. I am not authorized to sign a cheque and I am not a signatory in any of the bank accounts. Partners issue the cheques.
If the company has debts, will I be responsible or will it be the partner's/owners' responsibility?
I resigned from my company and have taken resignation acceptance from all the 3 partners on the company letterhead. I have completed my notice period. However, they need one more month to change my name on the trade license.
In case of any legal cases, would I be responsible?

Oct 22, 2022
527
Legal blog
1 available 1 • View allThe Duties and Obligations of the LLC Manager in the UAE 22
In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.
Mar 25, 2020
20061
Laws & Regulations
4 available 4 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29601
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
33088
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3571
Federal 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
47983

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Do I have to pay the value of training to the company in case of terminating the contract? 0
Salam,
My company has filed a complaint against me in MOHRE related to training fees.
This is the clause mentioned in my contract:
"The Second Party shall be obliged to pay back the value of the training (which is estimated at an amount of 10000 AED) when they terminate the employment contract based on their own free will (within One Year) from the date of commencement of their contract, without prejudice to the First Party's legal or contractual obligations. (the amount agreed on for the value of the training period must be commensurate with the employment period of the employee)"
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