According to the 2021 Global Ranking on Debt Collection, UAE is one of the most challenging places in the world for recovering the debt
I demand a limited liability company to repay commercial debt, but the company has refused to pay. What are the legal procedures taken in this situation?
What is the fate of my rights in the unpaid debt, can I litigate against the company manager?
Filing a claim and obligation of payment case against both the company and the manager in his person in an LLC company if it is proven that he holds assets of the company in form of revenue and benefits through the business of the company or in case fraud and grave malpractice. Articles No. 82, 84 of the commercial companies code No. 2 of 2015
Articles 645, 647, 650/1, 801 and 802/1) From the Commercial transactions Code – and on the basis of this court’s jurisdiction – that the creditor of the LLC may request the court for a declaration of bankruptcy if it stops paying due commercial debt on time as a result of its financial instability and the disruption of its credit
According to Article 84 of the Companies code No. 2 of 2015, the director of the LLC the company, may ask the partners and others for any fraud he or she does, and he or she is obliged to compensate the company for any losses or expenses incurred due to a mistake by the manager
A limited liability company manager is responsible for the company, partners, and others for fraud committed. He is obliged to compensate for losses or expenses incurred from his fault
It is established in the court jurisdiction as per article 84 of the Companies Law No. 2 of 2015 stipulates that the director of the LLC shall be answerable to the Company, the partners, and others for any fraud and shall be liable to compensate the Company for any losses or expenses incurred due to a mistake on the part of the Company Manager.