I live in Dubai.

I am a partner in a LLC factory holding 80 per cent of its shares and the other partner, who
is also the manager, holds the rest. The factory incurred big losses recently. Six months ago, the
manager signed a guarantee cheque for taking a loan for the factory. I only submitted the guarantee
cheque to the bank. For more than four months, the factory had not paid the monthly instalments to the
bank. The manager has run away and the bank is asking me to pay the pending monthly instalments
within two weeks or it will submit the guarantee cheque to the police. Bank officials say I am the one who
had submitted the guarantee cheque to the bank and who has 80 per cent of the factory shares and,
hence, is responsible. My question is; Am I responsible for the said cheque? Am I obliged to pay the
same from my private account? The factory is only two years old and we have been trying hard to run the
factory without success. Please advise.

The questioner is not responsible legally for the said cheque as long as he has not signed the same.
Submitting the cheque to the bank does not make the questioner involved in the cheque case and the
bank’s threat has no basis. The police will not summon the questioner in this regard, as the legal
responsibility shall be borne only by the person who signed the cheque. In case the cheque is forwarded
to the civil court, the questioner’s private account has no relation to the said cheque, and execution shall
be made only on the factory’s assets. Finally, if the factory’s loss is the result of fraud and deception by
the partners to obtain the bank money unjustly, then the public prosecution may intervene upon the
bank’s request and then the case may take another path.