Questions & Answers
Questions & Answers
11 available 11 • View allLiability of employee for the loan taken in the company's name
3
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
3830
Can CEO be sued for unsettled bank loans of the company?
0
Q: My associate was working as CEO (employee) in an entity in Sharjah. The owner has left the country with unsettled bank loans.
(1) Can the Bank put the CEO in jail charging him that he was operationally responsible for the bank borrowings?
(2) What defence my associate can get from the UAE Law?

Sep 10, 2017
688
Will an employee signatory be liable for bank loans of the company?
4
Q: Hi,
During my employment with my Company, I had signed a few guarantee for a finance taken by the company amounting to more than AED 100 Million. As I was the signatory to that particular Bank account I was asked to sign the security Cheque.
I have resigned 6 months ago and the cheque is still with the bank; will I be held responsible in the event the bank takes legal action if the company does not repay the loan?

Oct 21, 2017
1593
Consequences of failure to pay a commercial loan 
3
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
2095
Liability of a guarantor after the debtor fled the country

12
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
7458
Liability of the guarantor toward creditors in the UAE

6
Q: Hello,
I signed as a guarantor for my brother for a company loan he took, I was a partner. However, my brother has left the country 2 years ago.
Now, I have a civil case on me and the court and bank ask me to pay the amount of AED 450,000.
Please advise, what happens if I am unable to pay this money?


Oct 21, 2018
4825
Liability of an employee for company loans after leaving
0
Q: I have signed a security cheque for a car loan on behalf of POA General of a company. Now, I have left the company one year ago and the POA is not valid.
But recently, the security cheque has bounced and I got a warrant from the court. I am not the partner and I don't have any relation with the company.
Please advise.

Dec 26, 2018
617
What you need to understand about civil company
2
Q: Dear Khubaib,
Ramadan Kareem. Hope all is well.
We are registered as a mainland civil company in Dubai. The legal type of civil company comes with unlimited liability and that is stated clearly in the MOA.
However, we are marketing research and consulting firm and we can take huge risks especially when we apply for large government tenders.
- How can we mitigate this risk?
- Is it possible to amend the clause in the MOA?
- Can we take any measures to mitigate the risk such as an insurance policy?
- What kind of insurance do you recommend?
Thanks,
A.

May 26, 2019
666
Failing to pay the amount of a judgement by the company owner

9
Q: What happens if you are not able to pay any money even after the judgement/execution of a civil case? If there are no assets that can be claimed?
There were a genuine business loss and no money to settle with the bank/court.
Please advise


Oct 7, 2019
1743
Legal status of a company general manager if the owner fled for debts
1
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
1036
What are the consequences of unpaid debt on the guarantor?

1
Q: I guaranteed a bank loan for my company although I'm not a shareholder. The owner guaranteed too but he resides in South Africa.
The South African business owes the UAE business AED 850k and the bank loan outstanding is AED 880k. I am owed AED 1000k in unpaid wages/personal loans to the company.
Can the bank come after me for loan settlement (payments are currently up to date) if there is a default even though I'm owed more than they are?


Aug 18, 2021
370
Legal blog
1 available 1 • View allUAE Travel Ban: What You Need to Know 163
The UAE travel ban may be imposed on a person on various grounds, for instance, as the result of criminal offences, unpaid loans, breach of immigration laws or family matters. Implications of such a ban can be financially severe and daunting for the affected person. This article aims to give readers a clear understanding of what is the UAE travel ban, what are the grounds and procedures for its imposition and removal, how to check if the person is banned from travelling and other related topics.
May 6, 2024
135997
Laws & Regulations
3 available 3 • View allFederal 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
47896
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148342
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
32998

Premium
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View allHow can I vacate my tenant if the rental agreement ends before the eviction notice deadline? 0
My Dubai tenant's rental agreement is ending by the end of September 2024 and the completion of 12 months of legally served Eviction Notice is the end of December 2024.
I have two questions:
(a) Can I send a rent increase notice 3 months before as the rent has increased as per the RERA rent calculator?
(b) The second question is, do I have to renew the rental agreement for 3 months (until December 2024) or not?
Thank you.
May 1, 2024
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How can I reach a settlement with the bank for a mortgage of a jointly owned property? 0
I have a jointly owned property in Abu Dhabi. The mortgage was defaulted on as I had to leave the property with my children following an assault by my ex-husband. He left the country in 2018 and never paid the mortgage.
As I was in the country, the bank filed a criminal case against me, and I was sentenced to 3 years. I won the appeal against the bank and then filed another criminal case a few months later in Dubai. Again, I won and paid a fine.
In 2019, the bank started a civil case against me and my ex-husband to have the property repossessed. However, at the time of the purchase of the property, there were no Title Deeds, the bank requires this.
I cannot give them the Title Deeds to sell the property and pay back the amount owed to them as my ex-husband refuses to provide a POA. The bank has filed another criminal case against me only for our jointly owned property.
I wish to resolve this and pay off the bank and receive any money left from the sale. How can I resolve this issue of the Title Deeds?
Oct 4, 2022
282
The procedures for filing for divorce on mutual consent 0
Dear sir/madam,
I am separated from my wife due to compatibility reasons. We got married in the Indian consulate in Dubai on December, 23rd.
We would like to file a divorce on mutual consent as soon as possible. May I get some advice here on the procedures?
Sep 13, 2022
671
My previous employer failed to pay my gratuity. Can I file a case 6 months after resignation? 0
My previous employer failed to pay my gratuity six months past now since I resigned, Is it possible to file a case against him after a 6 months period?
May 31, 2022
1270
Can a real estate agency hold a percentage of a property sale until transfer is done? 0
A real estate agency has signed an MOU stating that a 10% security deposit from the buyer and the seller will be kept in the real estate agency and will be released upon transferring the property.
The transfer of the property was blocked due to the court order.
According to my colleagues, the real estate agency is not a trustee and they are not allowed to have taken my security check in the first place, is this correct?
Jun 28, 2021
1263
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