The directors of a company in Dubai need to fulfill a series of legal and moral requirements. The position is occupied by a professional who will act in the best interest of the company and will make the necessary business decisions to allow the company to progress or to avoid situations like company bankruptcy or company liquidation.
Dubai is a city that allows full foreign ownership for companies located in the special free trade zones. While a local resident is sometimes appointed as the company director in Dubai, a foreign investor can also occupy the position.
Our Dubai law firm can provide legal counselling and advice if you are the director of a company in Dubai.
A director’s duties and responsibilities
The company director is appointed by the shareholders and its obligations are as much towards the company as towards the shareholders, who must be informed of any changes regarding the company. The director also has to seek the shareholder’s approval for certain matters and decisions. The director of a company in Dubai has the legal duty to ensure that that enterprise observes the requirements of the Dubai Companies Act. Changes in the company must be reported to the relevant authorities.
The limited liability company is one type of legal entity in Dubai that requires a company director or manager. Such companies must have between one and five managers. A limited liability company that has more than seven shareholders must also have a supervisory board.
Our law firm in Dubai can give you more information about the types of companies in Dubai and their organization.
We invite you to watch the following video about a director's duties in Dubai:
Liabilities for company directors in Dubai
The directors of a company in Dubai are liable towards the company, its shareholders and third parties for any acts of fraud, abuse of power and violation of the law or the company’s articles of association. They can also be liable for poor company management.
Company directors can have criminal liability for making false statements, entering false information on corporate documents, willfully omitting substantial information or divulging company secrets for personal gain. They are also liable for conflicts of interest that may arise during the performance of the duties towards the company.