Questions & Answers
Questions & Answers
8 available 8 • View allLiability of employee for the loan taken in the company's name
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
3851
Can the creditor put a travel ban on me?
Q: I am the managing director of a company. A creditor is threatening to put a travel ban on me. I have not issued a cheque to this creditor.
Can he really put a travel ban on me?
Jun 21, 2016
5598
Liability of Finance Manager for bank loans of the company
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
945
Taking the blame for a fraud act committed by a colleague
Q: Hello Sir,
I am working as an accountant for a company in Sharjah.
One of our employees had committed fraud with AED 300,000, as a salesman.
Now, he accepted to make such thing and he is also available and working in the UAE.
When I told our management about this, all they said was that I am responsible for this all.
Am I responsible for this? What are my legal rights here?
Oct 3, 2017
13
Consequences of failure to pay a commercial loan 
Q: Hello Sir,
I have a company and have outstanding loans worth AED 1.9 Million.
We have been paying regularly for over 2 years now, but I have not been able to pay my last EMI. The next one is due soon but I don't have the provision to pay as the business is very dull.
What are the consequences if I cannot pay?
May 24, 2018
2132
Labor claim of a former employee
Q: I sold my company four months back in Sharjah, UAE and relocated to India.
Now one of my employees who left the company and cancelled the visa prior to the company sale has filed a lawsuit against new owners for which he claims some salary due and a leave salary. I was not aware of dues or not informed by my management team.
Who is responsible in this case to settle the due as per law?
Oct 26, 2017
542
Liability of a guarantor after the debtor fled the country
Q: Hello
I signed as a guarantor for a person's company loan for AED 500,000.
The person is no longer in the country and now there is a civil case on me.
What is the penalty or jail term I would be looking at?
If I go through the jail term, is the outstanding amount is also cleared?
Oct 9, 2018
7515
Legal status of a company general manager if the owner fled for debts
Q: Dear Sir,
I had a General Manager visa from an FZE company in Hamriyah Free Zone. In 2011, the owner of the company fled the UAE due to financial issues.
I was not in the UAE at that time as I used to travel once every 6 months only. When I got the news that the owner fled the country, I did not travel on that visa and let the visa expire.
I have not been to the UAE after that. I want to come back to the UAE to start a business but I do not know if have an immigration ban or blacklist since my employer fled the country.
Can you please advise if the General Manager has any issues if the owner of an FZE company fled the country due to debts?
Thanks in advance.
Jan 19, 2021
1085
Laws & Regulations
3 available 3 • View allFederal Law No. (3) of 1987 Promulgating the Penal Code
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
47948
Federal Law No. (2) of 2015 On Commercial Companies
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
29572
Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law
The provisions of this Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law, known as the "New UAE Penal Code", governs criminal actions in the United Arab Emirates. The New Penal Code repeals the previous UAE Penal Code (Federal Law No. (3) of 1987 Promulgating the Penal Code).
Sep 20, 2021
504
Other answers by
How do I know whether I am able to enter Dubai for layover flights?
Hi,
I left Dubai halfway through my contract because of a family ailment. I didn't give notice, I had a leave and resigned when I got home. It's been 2 years since.
How do I know whether I am able to enter Dubai for layover flights?
Nov 5, 2017
435
How to cancel my visa if my employer does not sign cancellation papers?
Dear Sir/Madam,
I have been working as a Civil Engineer in a Dubai-based construction company since 2003 with an unlimited contract.
Due to financial issues, the company has decided not to renew its license and is closing down, but they have the dues that have to be paid to the local sponsor and he is not signing the cancellation papers.
Please advise how I can get my visa canceled.
Nov 6, 2017
93874
Setting up a Delaware company with overseas subsidiaries
My company is based in Cairo, and I need to incorporate a mother company in Delaware, along with subsidiaries in London, Munich, and other international cities.
How can I do that?
Nov 6, 2017
685
What to do if you received a call from a person claiming to be a lawyer
I received an unsolicited call on a Saturday night (6.06pm to be precise), on my mobile phone in my place of residence from a lawyer (think he's actually a partner) claiming to represent my ex-wife in a matter pertaining to a divorce agreement that was ratified in Zimbabwe at the end of August.
He threatened that the full force of his law firm will be thrown at me if I did not settle the monetary claim within 48 hours of our telephone discussion. 80% of the monetary amount in question was actually remitted that afternoon, prior to his call, which he didn't bother to inquire about.
There was no formal notification in writing that their services had indeed being retained by my ex-wife. I am not sure if he followed due process & his threats could be construed as coercion in a matter that was all but resolved.
Nov 5, 2017
531
Is it legal to discuss maintenance of a child with the employer of my ex-husband?
Hello.
I would like to know if it is legal or illegal to contact my ex-husband's HR dept due to his refusal to pay for child support since the birth of our child (Age 16 now). He lives and works in Dubai.
I have remarried and have other children, moved to Abu Dhabi 1 1/2 yrs back and contacted him at his office. He has failed on every promise until now. I cant afford the high legal fees to file a case.
Please, let me know what are my options. Thanks.
Nov 2, 2017
631
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