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Rights and responsibilities of managers in UAE

Rights and responsibilities of managers in UAE

Every good leader is a part manager and every good manager is a part leader- Condoleezza Rice
In every organisation, manager is a key person who is entrusted with numerous responsibilities of utmost importance. He is not only required to supervise the business but also need to implement policies for a bright and profitable commercial venture. In this changing business environment, it is crucial to look into the rights and responsibilities of manager in limited liability company (LLC) in UAE.

In this article, we are going to discuss the same with the help of our best company lawyers of UAE.

Rights of the manager are as follows:
The powers and rights of the manager are usually prescribed under MOA and can be supplemented by way of issuance of a special resolution or a Power of Attorney from shareholders. He is in charge of the day-to-day management of the business and can enter into any arrangement to bind the company. He can issue cheques on behalf of the company. Take assistance from the best corporate lawyers for drafting constitutional documents for your company.

Responsibilities are permanent companions of rights! Following are the responsibilities that the manager must fulfil:

  1. Comply with all rules and laws issued by the state, and the provisions of the MOA and AOA. He will be accountable for breach or violation of applicable Law, the MOAs, the AOA or any specific agreement like Power of Attorney or any gross error.
  2. Satisfy employment and management contracts and preserve company rights.
  3. Call for a general assembly meeting within a fiscal year at least once and give effect to the resolutions issued by the general assembly.
  4. Prepare the annual budget, calculate profits and losses, prepare an annual report about the company’s activities/affairs and its financial position and make sure that before presenting them to the general assembly they are audited by the company’s auditor along with their recommendations on the distribution of profits for approval.
  5. Article 111 of the Law states that the manager would be liable to the company, the shareholders and third parties including employees, creditors, clients etc.
  6. Accountable for breach or violation of his duties, deception or fraud or misuse or improper use of power, or management errors, where the manager did not meet the standard of care expected of him/her.

The rights and duties of an LLC manager can vary depending on the nature of the company but to act honestly, and in the best interest of the company and the shareholders remains constant. For further information contact the best law firm in Dubai at or call us at +971508014003.

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