In Brief:
Directors have potential liability in cases of bankruptcy.
Directors must be aware of their statutory obligations. For example, directors are obliged to:
- call for a general meeting if losses exceed half the share capital;
- keep proper books and records; and
- avoid wrongful trading.
Background
Background
The Bankruptcy Law (Federal Decree Law 9. of 2016 concerning bankruptcy) is the first comprehensive UAE law to deal with and delineate insolvency procedures. It offers a number of roadmaps which a business in financial hardship can take advantage of with a view to continuing to trade.
During the current times, it is useful to assess these options.
Government mediation and conciliation
Background
The Bankruptcy Law (Federal Decree Law 9. of 2016 concerning bankruptcy) is the first comprehensive UAE law to deal with and delineate insolvency procedures. It offers a number of roadmaps which a business in financial hardship can take advantage of with a view to continuing to trade.
During the current times, it is useful to assess these options.
Government mediation and conciliation