Exercise your responsibilities carefully as the penalties for failure to do so can be severe.
Either the breach of duty itself, or the imposition of one of the sanctions described above, may lead to disciplinary action being taken against you and/ or limitations upon you being able to continue in your role.
Under the Federal Commercial Companies Law (No 2 of 2015) a director may be liable to pay compensation:
When a company brings an action against a director, the court may issue any order that the court sees fit.
A company may grant directors the right to be indemnified out of the assets of the company against any loss or expenditure incurred by the director in defending themselves in any court proceedings. This can be in any criminal or civil cases, which relate to anything done or omitted to be done by the director, and in which a judgement acquits, or is in favour of, the director. This right can be granted through the company’s articles. Delegation of authorities
Any director may appoint another director as his/her alternate who shall be entitled to vote in accordance with the appointing director’s instruction (if any) separately from his own vote.
A director can delegate powers under his power of attorney if his power of attorney includes subdelegation powers. These delegated powers should be set out in a sub-power of attorney.
A company may obtain and maintain directors and officers insurance. The company may purchase and maintain insurance for any directors or officers against any liability or expense.
UAE law requires insurers operating in the UAE to be IA (Insurance Authority) approved.