أسئلة وأجوبة
What should I do if my partner takes control of our company’s assets and misuses funds?
Hello,
My 50-50 business partner has taken control of the company phone, social media, and bank accounts.
Previously, he took 20,000 in cash to pay for his operation without consent.
What can I do?
Hello,
Taking money from the business without consent, especially for personal use (like paying for an operation), could potentially be considered misappropriation of funds or even a breach of fiduciary duty, depending on the legal structure of your business (e.g., LLC, partnership).
This is a serious issue that should be addressed immediately. If the situation escalates, you may need to take legal action to either force your partner to repay the funds, regain control of company resources, or even dissolve the partnership.
Legal actions can range from filing a formal complaint with the authorities (if fraud or embezzlement is involved) to pursuing civil action in court.
For further assistance, kindly share your WhatsApp number.
Dear Questioner,
Thank you for reaching out regarding your concerns!
- Review the Partnership Agreement:
Check the terms regarding decision-making, asset management, and fund withdrawals. In a 50-50 partnership, both partners must agree on major decisions.
- Communicate with Your Partner:
Discuss your concerns with your partner about their unilateral control and unauthorized withdrawal of funds. Clear communication may resolve the issue.
- Protect Company Assets:
Contact the bank to ensure both partners are required to approve transactions and regain control of social media and the company phone.
- Legal Consultation:
If the matter isn’t resolved through communication, consider legal action. I can assist with reviewing your agreement, drafting necessary letters, or representing you in dispute resolution or legal proceedings.
Let me know if you’d like to proceed or if you need immediate assistance.
Best regards,
Mohammed Salah
Legal Consultant
Dear Client,
Thanks for your question! I hope you are doing well. I will assist you in this matter.
In this serious situation, start by documenting all unauthorized actions your partner has taken. Review your partnership agreement for relevant clauses. Attempt to communicate directly with your partner to resolve issues.
If unsuccessful, consider professional mediation. Should that fail, consult with us. Legal options may include filing for an injunction, initiating a lawsuit for breach of fiduciary duty, or pursuing criminal charges if applicable.
Take steps to secure any remaining company assets you can access and inform relevant parties about the dispute. Be prepared for the possibility of dissolving the business.
Act swiftly to protect your interests and seek professional legal advice to navigate this complex situation effectively.
If you need further clarification or additional support, you can contact us via WhatsApp. We are dedicated to providing professional, timely, and comprehensive assistance tailored to your situation.
Thank you!
ABDUL WAHIED
1. Check the partnership agreement:
Review the partnership agreement or the company’s incorporation agreement. If there is a clause that states how the company is run and decisions are made, you can use it to support your case.
If your partner is acting in a way that conflicts with the agreement, it is a legal breach.
2. Check the distribution of shares and powers:
If you have a controlling interest in the company, you may have rights to make certain decisions without your partner’s consent.
Greetings of the day,
1. Look at the partnership agreement or memorandum of association (MOA) of your company. This document typically outlines:
A) Decision-making authority.
B) Financial responsibilities.
C) Profit and asset control.
2. If there is no formal agreement, general business laws of the UAE (or the jurisdiction where the company is registered) will apply. Request an Immediate Meeting and send an official email or letter requesting a meeting to discuss the unauthorized actions, including:
- The cash withdrawal of AED 20,000 without your consent.
- The unilateral control over the company phone, social media accounts, and bank accounts.
Ensure all communications are documented for future legal use.
3. Consider involving a neutral third party, such as a mediator, to resolve the dispute amicably.
4. If your business is based in Dubai, you can file a complaint with the DED, which oversees business disputes.
5. If your partner has committed financial misconduct, such as unauthorized withdrawal of company funds for personal use, file a police complaint or a civil case.
Kindly contact us for further assistance!
Best regards,
Sara Al Saedi Advocates & Legal Consultants
According to UAE law, you can take legal action against your partner for unauthorized actions such as taking control of company accounts and using funds without your consent.
You can file an official complaint or initiate a legal case to protect your rights. You can contact us via WhatsApp to review your case.
We specialize in these matters and will assist you in taking the appropriate steps.
Addressing this situation involves assessing your partnership agreement, documenting all relevant actions taken by your partner, and attempting communication and mediation before resorting to legal measures.
If necessary, seek legal counsel to explore options for protecting your interests in the business.
