Q: I was registered as a manager or signatory for a company. One year ago, I resigned. I recently revealed that my name is still on my old company’s trade license. What should I do to remove my name… A: The director registered on the trade license is considered legally responsible for the company…

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Is the manager of the company liable if his name remains on the license after resignation?

I was registered as a manager or signatory for a company. One year ago, I resigned, lost access to the company’s documentation and bank account, and had my visa canceled by the employer.

Currently, I am working in a new company in the UAE with a new visa. I recently revealed that my name is still on my old company’s trade license for an unknown reason. I was registered as a manager in that company based on a Power of Attorney.

I am not an owner or a shareholder of that company, and my name is not mentioned in the MoA of my old company. To my knowledge, the owners and managers threw up their company, left the UAE, and did not care about the company’s fate.

The company has never operated and has no money in the bank account.

What should I do to remove my name from the trade license if the owners do not respond to my messages?

Are there any consequences for me after the expiration of the trade license and its blacklisting?

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1 Nov 2024, 18:13

In the UAE, the director registered on the trade license is considered legally responsible for the company, even if they do not own it or is not involved in its actual management.

Therefore, it is necessary to take steps to remove your name from the trade license to avoid any future legal liabilities.

Suggested steps:

Contact the current owners:

Try again to contact the current owners or partners of the company, whether by email, phone, or any other available means of communication, to request that the trade license be amended and your name be removed as a director.

Apply to the relevant authorities:

If you are unable to contact the owners or they are unresponsive, you can apply to the Department of Economic Development in the emirate in which the company is registered.

This may require providing documents proving your resignation and no longer being associated with the company, such as a dated and signed resignation letter.

1 Nov 2024, 18:14

Potential consequences of not taking action:

Legal liability:

You may be legally liable for any obligations or debts that may arise from the company, even after the expiry of the trade license.

Financial implications:

You may face financial claims or fines as a result of any violations or unpaid obligations by the company.

Impact on credit history:

This may negatively impact your credit history and hinder your ability to deal with financial institutions in the future.

Important notes:

Procedures and requirements vary depending on the emirate in which the company is registered.

Therefore, it is important to contact the relevant Department of Economic Development in the relevant emirate for accurate information.

Some cases may require submitting advertisements in local newspapers to prove your resignation and no longer be associated with the company.

By following these steps, you can minimize potential legal risks and ensure that you do not incur any unwanted liabilities related to the previous company.

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