Similar provisions also apply to the general manager of the LLC. Article 219 of the UAE Commercial Companies Law provides that "It shall be mentioned that the company is an LLC, along with the company's capital. If this is ignored, the manager shall be personally liable in his own funds for the company's liabilities in addition to damages". This article refers only to the civil liability of the manager. Criminal liability is stipulated in article 322 of the Commercial Companies Law that "without prejudice to any stronger punishment in any other law, a punishment of no less than three months and no more than two years in jail and a fine of no less than ten thousand and no more than one hundred thousand Dirhams or any of these two punishments, to the manager or board member who intentionally falsifies the budget or the profit and loss account, or intentionally omits substantial facts in such documents with an intention to hide the real financial position of the company". This means that the manager is also liable to the company, partners and any third parties for a breach of the law or the company's regulations or fraudulent management activities.
Prior to filing a case against an LLC, Legal Consultant research into the company's activities, its partners, its transactions needs to be carried out in order to plan how to approach the case. . The burden of proof rests with the creditors to evidence the acts of the partners or manager the manager for any fraud or misconduct.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.