Questions & Answers
What legal troubles can I get into if my business partner absconds?
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?
By default, it is deemed that partners have contributed to the capital of the company in the percentage of ownership. If the other partner wants to sell and provided you are recorded as a partner in the trade license of the company, he cannot do so without your consent and presence (as ALL the partners have to be present for the transfer of shares before the notary public) or unless the court decides.
If the partner runs away leaving a mountain of debts... as long as you DID NOT sign any personal guarantee or cheque your personal assets will not be affected. Anyone who would want to recover its debts will have to sue the Company and the Manager.
In any event, I would advise you to close this chapter formally to avoid potential pitfalls.
