Questions & Answers
Questions & Answers
8 available 8 • View allLiability of company partners toward the debts of a partner
9
Q: Hi,
I run a trading company and we have 2 partners. My name is also in the license as a partner.
1. If the other partner ran away from the company with money, will I be responsible for the supplier payments & other dues if anything remains on the company because I am the other partner? Will I face legal action if they file a complaint?
2. If the other partner is signing the cheque on behalf of the company, and the cheque bounces for no money, will I be responsible for that because I am also a partner? Can they put a cheque bounce case for me although I didn't sign the cheque?

Dec 18, 2018
1962
What legal troubles can I get into if my business partner absconds?
6
Q: We invested as a partner in a restaurant in Ajman and I included my wife's name in the trade licence. Since the restaurant is not doing that great, the partner who has started this restaurant wants to close it and is looking to sell the restaurant.
We don't have any written proof of our investment in the restaurant other than the trade licence.
If this person runs away from the country what legal troubles can we get into? What is the best way to come out of this?

Oct 23, 2017
3936
Responsibility of business partners for a cheque bounce
1
Q: My business partner and I entered into newly started technical services LLC. Now it's 3 months old. We got trade license, office, sponsorship, labour and immigration card...etc.
The solution needed: my business partner already issued his friend a cheque of AED 8288 which was due on 16-8-2019 and it got bounced.
I paid my share amount of AED 4144 to my business since he used his friend cheque. I got a receipt from my business partner.
The question is, how can I get back my share amount from my business partner since the cheque bounced, I feel my business partner is trying fraudulence.
Please advise

Aug 27, 2019
690
Selling a share in a business without knowing its value


1
Q: I started a business with a partner (50/50 shares) who is managing the business, supported by my contributions to marketing and operations.
After 1 year of business, I'm still not getting clarity concerning the collections and payments, etc. Money is often collected by my partner in cash mode instead of the bank.
My partner keeps saying stay away from this and just focus on marketing and operation. Now I have decided to quit this business, but since there is no proper account, I'm not sure how much I should sell my 50% shares for.
Kindly advise me on how can I come out of this business and how much I should sell my shares for!



Jan 29, 2020
852
The responsibility of paying EOSB when a partner refuses to bear it




2
Q: Good Day,
My partner and I have been 50/50 shareholders in a transport company for the last 35 years. Now we reached a stage where we can't stand each other.
I offered my partner that I will run the company for 2 years and agreed on remuneration to him with a fixed amount to be paid irrespective of profit or loss for 2 years i.e. 2018 and 2019. We both agreed.
Now we are closing the company, or else, one of us buys the other share and we need to finalize on the payout.
I informed my partner to be equally responsible for the employees resigned in 2018 & 2019 regarding the end of service benefits which he has refused saying that he was not in the company for these 2 years.
Those employees have been working with us before we had this agreement.
Please advise if he is responsible for their payments equally or not.





Feb 5, 2020
459
The liability of a partner for loans after leaving the company




0
Q: Hi,
I am a 50% partner in a company and now I am going to leave it. I removed my name from the license and the memorandum of agreement. The company has a previous loan from the bank.
After leaving the company, am I still liable for the bank loans?
Or shall I obtain an undertaking letter from my partner and our local sponsor?





Mar 9, 2020
2718
Suing a partner for mismanagement of funds and causing losses
3
Q: I'm a partner in a company.
My partner who is also a manager ruined the company. There's a big load of debts in the market which also crossed the capital.
Is there any way, according to the law, by which I can sue him for mismanagement of funds and get my investment back?
If the capital is gone and further losses are more than the capital, what are my legal rights in this situation?

Jul 2, 2020
1377
Previous partner's liability for the outstanding bills of Etisalat
0
Q: I was a partner in an LLC company in Dubai from April 2017 to April 2018 with 4 partners having equal shares. In April 2018, when the trade licence was renewed, it was renewed with only 1 partner which was not me (earlier 3 partners were removed).
So the new sole owner who was an existing partner earlier didn't update the Etisalat with the new trade licence. How am I liable for the outstanding bills which are around 13000 Dhs even though my name is not included in the trade licence?

Sep 9, 2020
435
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
29583
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33062

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Can the tenant exit the lease contract early after losing access to gas? 1
There was a gas pipe explosion in our building and the whole floor is unhabitable.
So we are located on another floor, gas usage was cut and had to rely on electric plates which takes longer time to cook and there is the fear of fire if left unattended.
Gas will be reinstalled after 3 months and we wish to terminate the contract early because we cannot use the gas which is one of the facilities we agreed for in the contract and we feel unsafe in the building because every now and then the alarm goes on.
They gave us an option to move to their other buildings but will even be farther from work plus the transportation costs will increase.
Do we have to pay penalty charges for a situation that is not our doing? We are already having heart palpitations whenever there’s an alarm?
Oct 24, 2019
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Is it possible to terminate an employee due to her bad attitude 3
Good morning,
We have given an employee a final warning due to attitude and creating fights with employees.
Last time, she did the same thing after that she left the office early without informing the manager (she informed the owner of the company which is not the direct report) after that she was absent for 2 days without informing the same.
She sent a message to the owner of the company, but the owner did not reply nor approve her reason for being absent.
Is it valid that I serve her termination?
Thank you!
Oct 20, 2019
661
Filing a case for higher maintenance and possibility of travel ban 1
I'm an Australian non-Muslim expat resident for 10 years. My wife is the same, as are our three children, ages 19,16 (girls) and 11 (boy).
I have opened a case for divorce in Australia, and the hearing is in November. My wife wants to take me to court in the UAE regarding child maintenance.
I currently pay 35% of my monthly salary to my wife for child support. She wants more. I am due to leave the country next July permanently.
If she opens a court case, will that stop me from leaving? Has she got a case for more money?
Sep 12, 2019
1869

Other answers by
Can a company change the holidays of the UAE for expat employees to their country's holidays? 1
Hello team,
I have a Chinese team in a Dubai-based company, they are working in Dubai itself.
Can we exempt them from Dubai national holidays and provide holidays related to China national holidays?
Can you please suggest something?
Jan 4, 2023
375
What should you do when you get a police call without knowing the reason? 2
I got a call from police yesterday said I should come today to give a statement they didn’t tell me what it’s about.
I’m freaking out, all I know is I owe Etisalat. Apart from that, I don’t have any issues here. Can you help?
Feb 13, 2021
2580
Partner's liability while other partners are outside the country 1
My wife is a partner in a civil company in Dubai. The company has 4 partners; 3 of them are out of the country.
The company bought things for AED 50k which was not paid back and now they filed a case.
What will be the liability for my wife? she is not the manager of the company.
What will be my wife's liability for that company?
Feb 4, 2021
543
Trade license and banking legality for any kind of trading activity 2
Hi Sudhanshu,
Hope you are well.
What are my rights for establishing an e-com business meant for trading outside the UAE.
1) Do I still need the UAE trade license?
2) Can I receive payments in the UAE banks through international online business since I live in the UAE and would be here for some more time?
Best regards,
A.
May 19, 2020
531
Filing criminal and civil cases against a company for cheque bounce 2
Hello,
I hope you're all doing well during this tough time.
I have a question in regards to bounced cheques, specifically corporate cheques.
I have a cheque for AED 800,000, and it has bounced. The owner of the corporate has asked for a month to pay back. However, I am worried he will leave the country and not honour his obligation.
My questions are fairly simple:
1) Am I to put a case on the individual who signed it or the corporate?
1) If I put a criminal and civil case on the corporate right now and he's unable to settle amicably, can I put a travel ban on the owner (who signed) as it is a corporate case?
2) Does the new insolvency law as of late 2019 also apply to corporates?
3) Is the owner personally liable if the company doesn't have assets or cash?
May 14, 2020
1727

Other answers by
Recovering an amount lended to investors with security cheques 0
I had given a cash loan of 1.2 million to a restaurant owner in Dubai for 1 year, on a PDC security.
They served me some profit for almost a year, and when the date of repayment came, he started giving me different dates.
I bounced the cheques and complained in Dubai police, the police have opened a case and put a travel ban on the signing authority.
While running out of the country, the lady who was the signing authority was arrested and sent to the police station and from there to the public prosecution.
They used some links and skipped out of the country although the company and other partners are still in Dubai.
Please advise me what should be done to recover the amount, as the signing authority ran away.
Jun 11, 2019
617
Custody, guardianship and division of assets in a divorce 2
I want to divorce my husband; my concerns are as below;
If the divorce proceeding is under Sharia Law, what are my chances when it comes to;
1. Child Custody & guardianship - I believe I will get the custody until age 11. My question is if the husband is unemployed for 6 months now, can he still be considered as guardian since he can't provide for the family?
And if I can show that he has never been a provider for the family (basically, I pay ALL the bills since we got married) & I have a proof that he had an affair a year ago, can I get the guardianship as well & full custody?
Can the child get an opportunity to choose where he wants to live with when he reaches puberty?
2. DIVISION OF ASSETS - Since I got a land inheritance from my parents, is he entitled to get 1/2 of the property?
Obviously, he has no house/properties in his home country as well as savings and I am worried he will get everything. I own 50/50 in which he didn't sweat a dime on it.
Awaiting your advice.
May 23, 2019
712
Breaching contract by the service provider and possible action 2
Compensation for poor performance & false accusations.
We hired a consultancy agency to provide us with their services. During our working relationship, the deliveries were consistently late, and the service was unreliable.
We gave them numerous chances to improve performance and meet timelines.
The details of these problems have been communicated to them repeatedly but they did not address the problems in a timely manner, causing us extra expenses in addition to mental and emotional agony.
During the project, my father passed away & they have used this matter as an excuse to pause work on the project without notifying us causing us further delays.
Recently, we serviced them a notice for contract termination for their failure to adhere to mentioned services.
In response, they have wrongfully accused me of talking badly about their staff & making insulting & inappropriate comments about their work which have made the working relationship difficult.
Do we have legal rights to pursue?
May 14, 2019
621
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