أسئلة وأجوبة
What happens to the company and its operations if one of the partners is deceased?
X Real Estate LLC is a newly formed LLC company in the mainland (DED) with 10 partners, 9 of them Indians and one Pakistani.
As per the new provisions, the company is owned 100 % by expatriate residents. The company’s business is buying and selling real estate in the UAE.
Query:
What happens to the company and other partners, when one partner dies with or without a will?
Can the remaining partners continue to operate the bank account or it will be frozen?
Are the operations of the company frozen? Can the remaining partners carry on the business as usual, buy, rent, and sell the properties?
Can the partners pay the share of the deceased partner to his legal heirs and distribute his share among the remaining partners?
Will this affect the other businesses of the remaining 9 partners in any way?
Dear A.,
Greetings of the day!
With regard to your query, kindly be informed that in general, the shares of the deceased are distributed to the deceased's legal heirs.
For further discussion regarding the subject, kindly provide us with the incorporation documents of the company, and feel free to contact us.
Maryam Al-Yassi Advocates & Legal Consultants
The company's profits are distributed. The company should not be dissolved.
However, the shares of the deceased must be transferred to his legal heirs after a certain legal procedure that includes the issuance of an official document from an official entity (courts) in which the legal heirs, their legal representative, and his powers to administer the estate are identified.
