I live in Dubai. I am a partner in a LLC factory holding 80 per cent of its shares and the other partner, who is also the manager, holds the rest. The factory incurred big losses recently. Six months ago, the manager signed a guarantee cheque for taking a loan for the factory. I only submitted the guarantee cheque to the bank. For more than four months, the factory had not paid the monthly instalments to the bank. The manager has run away and the bank is asking me to pay the pending monthly instalments within two weeks or it will submit the guarantee cheque to the police. Bank officials say I am the one who had submitted the guarantee cheque to the bank and who has 80 per cent of the factory shares and, hence, is responsible. My question is; Am I responsible for the said cheque? Am I obliged to pay the same from my private account? The factory is only two years old and we have been trying hard to run the factory without success. Please advise.
The questioner is not responsible legally for the said cheque as long as he has not signed the same. Submitting the cheque to the bank does not make the questioner involved in the cheque case and the bank’s threat has no basis. The police will not summon the questioner in this regard, as the legal responsibility shall be borne only by the person who signed the cheque. In case the cheque is forwarded to the civil court, the questioner’s private account has no relation to the said cheque, and execution shall be made only on the factory’s assets. Finally, if the factory’s loss is the result of fraud and deception by the partners to obtain the bank money unjustly, then the public prosecution may intervene upon the bank’s request and then the case may take another path.
Withheld passport
I live in Dubai. I want to know whether the employer has the right to withhold the passport of an employee. If the employer files a false complaint against the same employee and if that complaint is found to be malicious, can the employee file a complaint before the court for damages. Please advise.
Answer: I would like to point out that as per the law, the sponsor is not entitled to withholding an employee’s passport for any reason. If it is found that the complaint made by the employer against the employee is false and malicious, the employee is entitled to file a complaint before the public prosecution against the sponsor. Thus, the questioner may file a civil case claiming compensation for the damages he has suffered as a result of the same.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants
