News and developments
How Can Managers Be Lawfully Removed under the Commercial Companies Law in the UAE?
In the UAE, the process for lawfully removing a manager from a company is governed by Federal Decree-Law No. 32/2021 on Commercial Companies. This comprehensive legislation outlines the procedures and requirements for the management and operation of various types of companies, including Limited Liability Companies (LLCs).
Within this decree-law, clear guidelines and procedures are provided to ensure a smooth and lawful transition in cases where the removal of a manager becomes necessary. Specifically, Article 85 of the decree law addresses the position of the office of the manager and outlines the procedures for their dismissal.
It's important to note that the dismissal of a manager may be conducted in accordance with the provisions laid out in the company's Memorandum of Association or contract of appointment. Any dismissal that violates these provisions may result in legal consequences.
Furthermore, Article 84 of the decree law emphasizes the liability of managers for any fraudulent acts, abuse of power, or gross errors committed during their tenure. This article underlines the importance of adhering to legal and ethical standards in managerial roles and provides a basis for the removal of a manager who fails to meet these standards.
In summary, understanding the legal procedures outlined in Federal Decree-Law No. 32/2021 is crucial for lawfully removing a manager in the UAE. By adhering to these provisions, companies can facilitate smooth transitions in management while maintaining integrity and legal standards.