- Director Breach of Fiduciary Duties
- Company Director Mismanagement Claims
- Director Removal Disputes
- Unauthorised Company Transactions
- Misuse of Company Assets
- What to do next
- FAQ
A shareholder opens the company's bank statements for the first time in a year. There are transfers to a firm she has never heard of, signed by the general manager. The amounts are not enormous, but they are regular, and the managing contract expires next month.A representative scene, not a reported case.
01Director Breach of Fiduciary Duties
A fiduciary duty is a duty to act in the company's interest, with care and loyalty. It is breached by self-dealing, undisclosed conflicts, using company opportunities personally or by acting beyond authority.
The proof is usually in documents: related-party contracts, approval records, bank transfers. We build a schedule of each transaction and who benefited. Without that, a claim stays an accusation.
02Company Director Mismanagement Claims
Mismanagement is different from a bad business decision. Courts are cautious about second-guessing commercial judgment. A claim succeeds where there was negligence, disregard of the company's documents, or a decision no reasonable manager would have taken.
Under the Commercial Companies Law, shareholders can bring a liability claim against managers for harm to the company. We consider whether the claim is better brought for the company or personally.
Speak to a Business Dispute LawyerSend us the contract or the key messages and we will tell you where you stand.
WhatsApp us03Director Removal Disputes
Removing a director requires following the constitutional documents and the Commercial Companies Law: the right body, the right notice, the right majority. Many removals fail because of procedure.
If you are removing, we prepare the notice and resolution so it holds up. If you are being removed, we review whether the process was valid and whether compensation or a claim for wrongful removal is available. Removal also triggers practical issues: bank signatory, licence manager and visa sponsorship.
05Misuse of Company Assets
Using company money, vehicles, stock or intellectual property for personal gain can lead to a civil recovery claim and, depending on the facts, a criminal complaint for breach of trust. The two tracks interact and need to be sequenced deliberately.
A forensic review of accounts often comes first. We tell clients not to confront the individual before assets and records have been secured. Related disputes appear on our shareholder and partnership page.
What to do in the next 48 hours
- Secure access and recordsMake sure you can lawfully access the books, bank statements and contracts. Avoid taking documents you are not entitled to see.
- List the suspect transactionsDate, amount, recipient, approver and reason given. A simple spreadsheet works.
- Hold the confrontationTalking to the director too early gives time to move assets or alter records. Speak to us first.
Documents we ask for first
- Constitutional documents and managers' appointment
- Board or general assembly minutes
- Bank statements and transfer approvals
- Related-party contracts
- Management accounts and audit reports
- Emails showing instructions and approvals
Questions we are asked
Can a director be sued personally?
Yes. Directors and managers can be liable for harm they cause through breach of duty or breach of the law, depending on the facts.
Can a shareholder sue on behalf of the company?
The Commercial Companies Law allows liability claims in certain circumstances. The conditions are specific, and we check them against your position.
Is this a civil or a criminal matter?
It can be both. Civil recovery and a criminal complaint have different standards and effects. We advise on whether to run one, the other or both.
Related disputes
Ready to talk it through?Have the contract, the latest message and any notice in front of you. Call or WhatsApp is fine.
Call nowThis page is general information based on UAE and Dubai legislation as we understand it at the date of drafting. It is not legal advice. Laws are amended, and the right step depends on your documents and facts. Outcomes are never guaranteed.