Crimes Committed by Agents or Representatives

When a company is failed to meet his professional obligation, for example paying salaries, paying taxes, paying vats, meeting with the provisions of business like articles of association or memorandum of association, then it’s a serious crisis for a business because it increases its liabilities. Criminal liabilities in commercial world is a hot debate nowadays. Legal structure of UAE does not provide any flexibility to criminals and discourage any type of criminal activity in UAE. Federal Law introduces several laws to stop and punish the corporate frauds and unpaid liabilities. It is clearly outlined in Law. Let’s find out Criminal and Corporate Liability of a Business in United Arab Emirates.

Let’s have a little talk over companies Law first. Article 21 from Federal Law 32 of 2021, which is also, known as Companies Law, got implemented on 2^nd January 2022. Companies Law in UAE, defines the criminal liabilities and corporate liabilities in UAE. Emirati Advocates and Legal Consultants can be hired to understand this in details. Lawyers can always help grabbing the details. Let’s talk further about Criminal and Corporate Liability of a Business in UAE. Learn more about Crimes and Penalties Law.

Article 66 of same Penal Code states that company is accountable if any crime committed by the company representatives. Even though Dubai Court has also passed a judgement regarding this, where “DUBAI CASSATION COURT” passed this judgement that company will not be count liable for the offensive or criminal activities of its employees. As we said above that UAE National Advocates from top Law Firms are the experts who can help grabbing the latest information and knowledge.

Company Law in UAE states that a business is a business entity, and a legal personality when it is formed. Conditions and exceptions will take us very long but for understanding we can mention that business has its existence as a separate business entity. If company directors, or its agents commit crime or financial frauds, then business will be held accountable. However, Cassation Court Dubai also clears through verdicts that company cannot face or might not face the criminal liability, if any fraud is made by the partners, shareholders, and its agents. Managers of the companies can also be held accountable. If they commit mistakes, frauds, embezzlements etc, then they can be declared responsible for this. When managers have their name in trade license then they can also be nominated on behalf of company in litigation.

The legal requirements and procedures for prosecuting a company. It is for prosecuting a company indulging the white collar criminal offense. It is regulated and checked by UAE Criminal Procedural Law. This law is exactly like prosecuting other crimes. Public prosecutor is a state representative, who represents the states and its interest in litigation and investigates the two parties when they come across each other in any criminal matter. Article 9 from UAE Criminal Procedural Law, provides a jurisdiction to public prosecutor where he can conduct the investigation, manage the proceedings and pass a judgement. Basically he issues an indictment. But there is a process to reach up to this final decision which should be followed. Let’s unfold the process as follows;

• Police stations have to investigate the matter and forward to public prosecution. Police department has also authority to reject the complaint or remove it after the investigation. Police department conducts the investigation and send to public prosecution. Police role is more up to gathering evidences, than investigating the matter.

Initially the complaint has to be registered in police station. The police station that covers the territory in which, the crime is committed, has to be approached to lodge the complaint. Once the complaint is lodged then, police officers investigate the matter, gather the proof, evidences and submit the report to public prosecutor. Police officer is responsible to prepare the file. But Article 12 of UAE Criminal Procedure Law, also allows the public prosecutor to initiate the proceedings independently.

• Public prosecution is a department known as government representative. Who has the right to investigate and provide the decision. Public prosecutor is a state agent, who investigates and form a decision.

Once the case is prepared then this is sent to public prosecutor. Public prosecutor has to conduct the further investigation. If public prosecutor finds the initial investigation, incomplete, then he has right to send back the file to police department for further investigation and gathering the proofs. Public prosecutor has authority to dismiss the complaint or if public prosecutor finds a problem then he can pass the decision as well. Indictment can be issued by public prosecutor because he is granted a right to issue the indictment.

The decision of public prosecution can be challenged in Cassation Court of Dubai. Dubai Courts are the last destinations to pursue the matter.

Law provides a provision to victims that they can ask for compensations in Civil Courts. Once the criminal court passes a verdict in which it is proved that, there has been a loss or damage, then victim has the right to open a civil court for the compensation. Civil Case can be opened anytime, but if the criminal court declares the nominated person guilty, then victim has right to open the case. It is always a duty of Civil Court to count losses and damages.

Criminal Law Lawyers are the expert attorneys who are expert in Criminal Law and can help both parties e.g. plaintiff and defense in criminal courts. A criminal matter is comprised of police complaints, public prosecution and criminal courts. Professional criminal law lawyers help the individuals and business entities in criminal matters. Please make sure that always prefer to hire top lawyers and legal consultants. An unfavorable judgement from criminal court, can cause another judgement in Civil Court.