How can I handle bounced cheque liability with my closed LLC company?

Dear Questioner,

According to UAE law, the signatory (finance manager) is responsible for the bounced cheque, as they were the one who signed it.

However, as the company is now closed, the liability falls on the company itself.

In order to get the travel ban lifted for your ex-employee, you will need to settle the liability with the supplier.

This can be done through negotiations with the supplier or through a court settlement.

If you are unable to settle the liability, the supplier may file a case against the company and the court may order the company's assets to be liquidated in order to pay off the debt.

If the company does not have enough assets to cover the debt, the court may also order the personal assets of the company's owners or shareholders to be liquidated in order to pay off the debt.

This means that your personal assets may be at risk if the company is unable to pay off the debt.

In order to protect yourself from this liability, you may consider filing for bankruptcy or liquidating the company. This will involve a legal process and you may need to seek the advice of a lawyer.

It is important to note that filing for bankruptcy or liquidating the company may have long-term consequences on your credit and ability to do business in the future.

It is recommended that you seek the advice of a lawyer who specializes in commercial law in the UAE to guide you through the legal process and help you protect your personal assets.

Good afternoon,

This is a cheque execution. They will impose a travel ban and freeze his account. He needs to file a dispute against this execution, asking the court to allow installment payments and unfreeze the account.

For details, please contact us at [--------].

Dear Questioner,

Thank you for reaching out regarding this complex situation involving your former LLC company and the bounced cheque issue.

Firstly, addressing the release of your ex-finance manager, who is now under a travel ban, is critical.

Since the cheque was issued in their capacity as a representative of the company, we can argue that the responsibility lies with the company and not the individual employee, given their role and the fact that they acted under a Power of Attorney.

We would need to review the specific details of the case to explore options for removing the travel ban on your ex-employee.

Regarding your liability as the company owner, there are a few strategies we can consider to protect your personal assets and address the outstanding debt, especially since the company has been closed for over a year.

This might involve negotiating with the supplier or exploring legal defenses based on the company’s current status.

I strongly advise setting up a consultation where we can delve deeper into the details of your case. This will allow me to provide you with tailored legal advice and work towards a resolution that safeguards both your interests and those of your ex-employee.

Please feel free to reach out to me directly via WhatsApp or phone at [--------], or email at [--------] to discuss further and arrange a meeting.

We are looking forward to assisting you.

Best Regards,

Suhail Rana

Legal Representation:

Your ex-employee will need legal representation to argue that they were only an authorized signatory with limited powers and not responsible for the company’s financial decisions.

The fact that they held a POA just to sign cheques can be a crucial point in their defense.

It’s advisable to consult a lawyer who specializes in corporate and insolvency law in the UAE. They can guide you on the best course of action, which might include formally dissolving the company’s legal obligations if it hasn't been done yet.

Contact Al Kaaseb Advocates & Legal Consultancy For a free consultation.