How can I withdraw from a family business partnership while ensuring no liabilities?

Hello,

Since the service provider holds 0% ownership, they generally do not have any claims on the company’s assets or shares unless there is a specific contract granting them certain rights, such as profit-sharing or decision-making authority.

Review any agreements with the service provider to determine their legal standing. You have the right to withdraw from the partnership if the partnership agreement allows it.

However, there may be stipulations regarding how and when you can withdraw, which are typically outlined in a partnership agreement.

For further assistance, kindly share your WhatsApp number.

Dear Inquirer,

We are pleased to serve you and address your inquiries.

The partner’s rights upon withdrawal and other rights are regulated by the partnership contract itself, so please refer to the provisions of the partnership contract.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants

Dear Questioner,

Thanks for your inquiry!

According to UAE law, a service provider who holds 0% of the company's shares does not have any claims on the company in case of any changes in the partnership.

However, it is important to review the partnership agreement to determine if there are any clauses or agreements that may affect the service provider's rights.

As a partner, you have the right to withdraw from the partnership at any time, as long as it is done in accordance with the partnership agreement and UAE laws.

This may include providing written notice to the other partners and following any procedures outlined in the partnership agreement.

If you are the guarantor for a loan, you may be able to transfer this responsibility to another partner, as long as the bank approves the change.

You should consult with the bank and review the loan agreement to determine the process for transferring guarantor responsibilities.

If your father has authorized your siblings to be dual signatories for bank cheques, this may also need to be updated in accordance with the partnership agreement and bank procedures.

It is important to consult with the bank and review the partnership agreement to determine the process for changing signatories.

You may be able to withdraw from the partnership before the approval for your siblings as dual signatories is completed, but this will depend on the partnership agreement and any applicable laws.

It is important to consult with us as a legal professional to ensure that you are following the correct procedures and protecting your rights as a partner.

Kindly do not hesitate to contact us via phone or email for further guidance.

Greetings,

Hello,

The share transfer and rights will be as per the MOA. You may relinquish, sell, or transfer the shares to your father or brother by amending the MOA.

Once amended, the banks will be updated accordingly. Please contact us by email or call [------].

Dear Questioner,

Thank you for reaching out with your query regarding the family business partnership.

In a situation like yours, where a service provider has no ownership stake, they generally do not have any legal claims on the company if something happens to one of the partners.

However, the specific terms of your partnership agreement (if any exists) will dictate the obligations and rights of all parties involved.

As for your desire to withdraw from the partnership, your rights to exit and the procedures for doing so will depend on the partnership agreement and any local laws governing such partnerships.

Typically, you would need to notify the other partners of your intention to withdraw and follow the exit clauses outlined in the agreement.

The transition of loan guarantor responsibilities to another partner is also something that can be negotiated, but it would require formal agreement from the other partners and the lending institution.

Regarding the vehicle authority and your question about withdrawing before the bank approval of the dual signatory, you may be able to exit before the bank approval, but I would advise that the entire situation be handled with care to avoid any legal complications or liabilities on your part.

I highly recommend discussing the matter in detail to review your partnership agreement and any other documents, as well as considering how best to withdraw without causing any issues.

Please feel free to reach out to me directly via WhatsApp or phone at [-------], or you can email me at [-------], and we can go over your options in more detail.

Best regards,

Suhail Rana