Introduction In the current constantly changing economic climate, it is very hard for companies and their stakeholders to make the right decisions in a short period. People have to comprehend the worth of management, as well as their liabilities and complete their duties regarding the standards set by a country and the companies they work in. Directors play an important role in the development of corporate culture and governance. Governance should be properly organized and successful to promote the growth of companies in different countries under different conditions. According to Sharma, corporate governance is “the set of processes, customs, policies, laws, and institutions effective the way of a corporation (or company) is directed, administrated or controlled” (216). Shareholders and other stakeholders cannot neglect their duties concerning a variety of transactions and other financial and commercial operations of their companies. At the same time, they have to set the requirements of the relations that may be developed between the stakeholders and describe the duties every director should meet while managing a company. However, despite several attempts are made to forecast and avoid corporate problems, misunderstandings, and other mistakes, certain acts of fraud and mismanagement still take place, and companies have to identify the liabilities of directors in such situations. In this paper, the UAE and US company laws will be analyzed and evaluated with certain attention paid to fraudulent trading and wrongful trading to explain how and why directors of the UAE and US companies have to learn and comprehend their liabilities in regards to the acts of fraud and mismanagement. Company Law’s Basics In every country, citizens have to be aware of laws, follow, and respect them to live and consider the basics of governing and managing affairs. The idea of punishment is the required portion of control that does not make people follow their needs and interests only but know how to treat the people around and organize their activities. In the world of business, many challenges and laws can be offered to overcome them and make the right solutions. Company law is one of the possible types of legislation that helps to gain control and administrate the activities of shareholders, directors, employees, and other stakeholders, who want to create, register, govern and dissolve companies (International Business Publications US Company Laws 21). Managers and directors clarify their responsibilities with the help of company laws and learn how to use their opportunities to promote the success of their companies. Every country introduces a unique approach to the introduction of corporate law and the identification of directors’ potential personal liabilities for the acts that contradict the issues of company law. Also, every company has its own corporate culture and regulations that identify the duties of directors and the regulations that can be used for acts of fraud and mismanagement. However, there are also such researchers like Brian Cheffins, who continues arguing that company law is “fairly insignificant in constituting the company when compared with th