Director liability in insolvency in the UAE

How we help with director liability in insolvency

• Evidence and document review

  Our review covers appointment and authority records, board minutes, contemporaneous accounts, disputed transactions and insolvency papers. We identify what supports your position and what needs clarification or further evidence.

• Does company bankruptcy automatically make directors pay every debt?

  Article 246 of Law 51/2023 provides a court-ordered liability route tied to specified proven conduct and an amount proportionate to the person’s fault, rather than automatic transfer of all corporate debt. Identify the act, management role and timing before assessing exposure. Preserve contemporaneous board and financial records. Other guarantees, company-law duties and free-zone insolvency rules need separate assessment. Identify the director's role, information available at the time and specific conduct challenged. Preserve board records, financial warnings and advice received. Company insolvency does not by itself describe a director's liability; the alleged duty, transaction and applicable framework need separate analysis.