Q: Am I liable for my father’s company debts? My name was not included on the list of shareholders. I held no shares. I am not the manager on the license… A: Even if you are a shareholder, you are not liable for the debts of the company unless you signed a personal guarantee…

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Personal liability for the debts of the father

Am I liable for my father’s company debts?

My name was not included on the list of shareholders. I held no shares. I am not the manager on the license. I have never signed any cheque or issued any payment on behalf of the company.

I have worked in the company for the past 3 months, and have signed internal company documents.

Anitha Rajeev

Al Nassar Advocates & Legal Consultants

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26 Dec 2018, 13:33

Dear Questioner,

Good evening.

Thanks for keeping in contact.

As long as you are not a shareholder of the company, you are not liable for the debts of the company.

Also, you should not be part of the MOA of the company.

Please contact me via phone, WhatsApp, or email.

Regards,

Anitha Rajeev

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Nikhat Sardar Khan

Kochhar & Co Inc. Legal Consultants (Dubai Branch)

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26 Dec 2018, 16:57

Even if you are a shareholder, you are not liable for the debts of the company unless you signed a personal guarantee as the shareholders are not liable but the company is - unless the company is a professional license where the shareholders are personally liable.

So if you didn't sign or accept any obligations wrt to a third party, you don't have to worry. No one can force you to pay just because you are the son.

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