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Abu Dhabi Court of Cassation Clarifies Liability in Complex Investment Arrangements
A recent Abu Dhabi Court of Cassation judgment clarifying how courts may determine liability in complex investment arrangements involving multiple corporate entities, overlapping management roles and limited formal documentation. The decision also confirms that corporate office alone does not create personal liability and that individual liability requires a separate legal and evidential basis.
Abu Dhabi Court of Cassation Clarifies Liability Under Investment Management and Custody Arrangements
An Abu Dhabi Court of Cassation judgment clarifying that the liability of licensed financial institutions in managed investment arrangements depends on the substance of their contractual roles, rather than labels such as “limited-discretion manager” or agent. The Court confirmed that institutions assuming investment-management, custody and liquidation responsibilities may be liable for outstanding investment balances, while directors and managers are not automatically personally liable absent separate wrongdoing.
Dubai Court of Cassation Clarifies When a Market-Rate Return Is Payable on Frozen Bank Balances
A Dubai Court of Cassation judgment confirming that where the Central Bank of the UAE issues a binding instruction requiring frozen account balances to accrue a return at the prevailing market rate, licensed banks must comply. The Court also clarified that while such a return may be recoverable, an additional award of interest on the accrued return is prohibited as impermissible interest on interest under UAE law.
Dubai Court of Appeal Clarifies Scope of Investment Migration Advisory Mandates
A Dubai Court of Appeal judgment confirming that where a service provider's role is limited to advisory, administrative or coordination services in investment migration matters, the refusal of a residence or citizenship application does not, by itself, establish contractual liability.