Property Sector: Do Directors Need to Consider Personal Liability Issues?
Type
E-journal
Date
8 Mar 2011
Jurisdiction
United Arab Emirates
Taxonomy
Companies & Corporate Bodies, Employment Status, Terms, Documentation & Directors, General Insolvency Law
Copyright
LexisNexis
Relevant company
Hadef & Partners
Legal reference
UAE Commercial Companies Law, Federal Law No. 8/1984
Analysis
Michael Lunjevich and Melissa Murray take a closer look at what limited liability may really mean for company directors
In brief:
Despite the limited liability nature of companies, directors may incur personal liability for the debts and actions of the LLC if their behaviour or corporate decisions are not within the boundaries of limitations set by UAE law.
Directors can reduce their chances of being pursued for company debts and liabilities through the implementation of good corporate governance measures to ensure the commercial and legal reasons and assumptions behind their decisions are well documented to ensure there is a record to prove their actions were prudent and within the boundaries of the law.