Liability of Managers and Directors in an LLC Company in Dubai UAE
The formation of a Limited Liability Company in UAE is the widely used and adapted method by expat as it gives them ownership of 49% in a local business partnership.
The manger in a limited liability company can be appointed for a specified length of time or for an unlimited time. The appointment is to be made and governed under a memorandum of association (although at times can also be determined via a side bar agreement).
A general manger has the authority to take any action or decision in the best interest of the company. If it is stated in the memorandum of association that the manager cannot be removed then the only way to apply for his dismissal is to hold a vote with the shareholders to do so. It is important to note that the manager will still be held responsible and liable for his actions as the GM even after his or her removal.
In the event a third or external party files a complaint or case regarding any illegal or fraud the general manager can be held liable in his personal capacity.