Questions & Answers
Questions & Answers
8 available 8 • View allThe company right to claim its debts upon liquidation

1
Q: I own a business in Abu Dhabi (I am the 100% direct owner and I have a local service agent) and one client based in Saudi Arabia didn't pay us for two years.
If I close the business in Abu Dhabi, can I still sue the Saudi company and claim the money in the court even though the company will no longer exist, or I still have to maintain the license active?
Thanks


Oct 9, 2017
817
Liquidation of a company for maneuvering of the managing partner
3
Q: My name is W. S., I am a partner in a hospitality services company with 33% in Dubai.
By delaying the operation, The managing partner is exhausting the capital of the company and driving the company to bankruptcy aiming to take it for himself.
I sent him a timely legal notice to close the company and he did not react. I would like to know the cost of placing a lawsuit for “liquidation, compensation and refund of the paid amount in the company capital plus the interest“ against him along with the lawyer professional fees for this matter.
I would like to be connected with a lawyer who is experienced in similar cases and who can handle this case.

Dec 22, 2018
1701
Is appointing a liquidator mandatory during Liquidation?
1
Q: Is it possible to liquidate a company without a liquidator service?
The company is LLC.

Apr 15, 2019
2016
Which option is better in the UAE: bankruptcy or liquidation?

2
Q: In the UAE, a company in financial difficulties should go for bankruptcy or liquidation?
What is the cheaper and faster option provided the owner is a manager and partner in the company?


Apr 30, 2020
1039
Director's responsibility for rental cheques upon bankruptcy/liquidation
3
Q: Good Day,
We are an LLC based in Fujairah. Due to COVID, we have run out of money and will need to declare bankruptcy or liquidate it. However, when all rental cheques were handed over, they were from my personal account (as we took a loan to start the business and did not have a bank account for the business yet).
These cheques are still in the possession of the lessor. It would be possible to replace the cheques but I will still need to personally sign each cheque, as I am the director of the LLC.
If we liquidate, would I be held responsible for the payment of the outstanding rent?
Can I end up in jail if I don't pay?
Is this not exactly why an LLC is established?
What will be my responsibilities as we are not getting cash into the business?

Jul 5, 2020
703
Can the investor of bankrupt company start a new company?
2
Q: Hi,
What are the consequences on the investor for leaving an LLC going bankrupt in the UAE?
- Can the non-resident investor start a new business in the UAE?
- Any issues in obtaining a new investor visa? Others?
Liabilities are:
- Bounced cheques for property rental with landlord sending a legal notice.
- Other services (mobile phone, electricity, water, sewerage... etc.).
Thanks

Nov 22, 2020
360
Filing for bankruptcy or liquidation in case of business failure


1
Q: I am a partner of a small civil company with a professional license issued by DED.
My company has lost court cases wherein we have to pay 400,500 AED. These cases are in the execution stage.
My company also has debts of 364,000 on our books. The company is not in a position to pay the proven debts in execution court or the pending debts mentioned in our books. I want to close the civil company.
Question 1: Is it better for me to file for bankruptcy or file for liquidation of the company?
(Or will the court immediately start one procedure if I register the other procedure?)
Question 2: I heard that the court starts criminal proceedings automatically if bankruptcy proceedings are started. Is this true? What rules to follow to avoid criminal charges?
Question 3: After the civil company is declared bankrupt, will the partners still have to pay the creditors (In the ratio of the shares they held in the civil company) because our company is not an LLC.
Thank you for your help!



Nov 1, 2021
673
If no assets are found, can the court reject the bankruptcy case?

1
Q: Dear Sir/Madam,
I got approval for bankruptcy proceedings as a trader.
If, in the court expert report, no money or assets are found for liquidation, can this lead to the court rejecting the bankruptcy case, as there will be nothing to give to creditors?


Feb 16, 2024
78
Legal blog
6 available 6 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
Mar 14, 2017
6308
The Legal Alternatives of Bankruptcy in the UAE Legislation 1
The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.
Apr 9, 2019
2437
What You Must Know about Company Liquidation in the UAE 15
Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.
Mar 18, 2020
7276
Bankruptcy Law and Personal Insolvency Law 10
This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.
Oct 1, 2020
4900
Recent Amendments of the Laws in the UAE 4
An interview-format article covering the topic of the new amendments to the laws in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Feb 3, 2021
3050
Filing for Bankruptcy and Insolvency in the UAE: What You Need to Know 8
Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.
Nov 12, 2024
310
Laws & Regulations
2 available 2 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.
Mar 25, 2015
29524
Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law 0
The provisions of this Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law, known as the "Bankruptcy Law" governs Financial Restructuring and Bankruptcy regulations in the United Arab Emirates
Oct 2, 2023
130

Other answers by
453 453 answers •
View allTerminating an employee after sick leave and claiming compensation 0
Hello,
My employer fired me under Article 44 for not showing up for work for 7 days in a row. But that’s not the case at all. I was sick and the management was aware and they let me go.
I went to another country to get treatment because it’s expensive in Dubai. My employer did not pay me my salary for the month I worked and fired me.
I have official sick leave from another country and there is correspondence where my employer sent me to another country for treatment.
The problem is that the employer says that he will take compensation for the training that was specified in the contract, but I did not undergo training at all; I immediately started work from the first day of work and there was no training.
Does my employer have the right to charge me such a fee and not pay my salary?
Feb 29, 2024
449
How to make the seller hand over the tenant's security deposit to the buyer upon completing a sale? 0
Should the seller in Dubai hand over their tenant's security deposit to the buyer upon completing a sale?
Who is responsible for managing this process?
At the time of the exchange, the broker said he would follow up with the seller and collect the deposit.
He hasn’t, and the seller has not handed over the deposit.
Feb 8, 2024
414
How to deal with in-laws provoking and recording reactions? 0
Dear Sir/Madam,
My husband's family constantly provokes me and then records my every exaggerated reaction.
Now I'm worried that they might use those things against me.
Feb 8, 2024
235
How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan? 0
Hi,
I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price.
On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU.
The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response.
I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled.
Please, I need advice.
Feb 8, 2024
611
Employer asking for visa reimbursement after resignation: do I need to pay? 0
Hello Sir/Madam,
I have already finished my first year with my company and resigned.
My employer is asking me to reimburse the cost of my visa because I did not finish my two-year contract.
Do I need to pay? The cost is 7,000 AED.
Oct 20, 2023
796
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