Director's personal liability when a UAE LLC defaults on payments

Default position: limited liability protects you from company debts. BUT three personal-liability triggers exist under Federal Decree-Law 32 of 2021 on Commercial Companies: (1) trading while insolvent (continuing to incur debts you know cannot be paid); (2) commingling company and personal funds; (3) any personal guarantee you signed for suppliers/banks. Pre-insolvency, immediately stop incurring new debts, segregate any funds, and engage a restructuring specialist for the Federal Decree-Law 51 of 2023 bankruptcy framework — it offers a moratorium during a restructuring plan.