Questions & Answers
The impact of a company shareholder on closure decision by majority
Hi,
I am a partner of a Dubai based (mainland) company. Due to the financial restraints, the investor (shareholder) has decided to close the company.
Now, I want to know if they can do this without my consent as the sponsor 51% and partner 26% have decided this. My share is 24%.
You are kindly requested to provide us with a copy of the memorandum of association of the company so that we can answer you accurately.
Advocate Bashar Abdalla 0505479696 or email us at bashar@almasayba.com.
Dear Questioner,
If the local sponsor and your partner decided to close the LLC company, they can do this without your consent because they have the majority of the shares in the LLC, more than 75%.
In case you wish to find an option to stop them, I suggest to have a meeting (bring with you the incorporation documents of the LLC: license, Memorandum and Article of Association, all amendments to the Memorandum and Article of Association) and see if there is any change or option to stop them.
I am looking forward to your reply.
Best regards,
Raluca Gatina
There shall be a provision in the MOA or subsequent amendment of the company for the liquidation of the company.
kindly have a look at it and see what is the quorum required for passing such resolution.
if you need consultation over the matter, feel free to reach to us.
