DCC 312/2007
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Directors, Companies & Corporate Bodies, Lending & Security, General Contract Law
Copyright
LexisNexis
Decision date
18 Mar 2008
Catchwords
Director's liability – Limited Liability Company – Personal Liability of the Director - Banking – Credit Facility - Contract
This case involved a director who had signed a credit facility with a bank. A key issue was where the contract had been clearly marked as being between the bank and the company but the director had failed to sign clearly in his capacity as a director if that mean he had personal liability as a result.
Key Legal Questions in Judgement:
Where is the line drawn with reference to the director's personal and professional actions
Is the presence of the company name in the preamble of an agreement, and the signature of another considered as having signed on behalf of the company and its owner, despite what is mentioned there or he standing of the person calling on the obligation.
Can a director be granted all powers to contract on behalf of a company, except when there is a specific clause to the contrary
Is a Director of a limited liability not personally liable for its debts if he commits a fault Article 219 of Federal Law No. 4/1984