Q: I worked for a DIFC company for a year. The company went into liquidation and since that time (2009) I was not able to get my end of service benefits (AED 60,000). I am contacting the liquidator, sending emails every now and then, but most of the time no answer or the same answer "There is no update, we are trying to sell the company assets. We will update you soon..." How can I recover that money? Please advise.

س: لدينا شركة ذات مسؤولية محدودة بدبي وهي مدينة بموجب عقود مع عملاء وديون أخرى لشيكات مستحقة الدفع. لا توجد أموال طوال العام المالي 2019 وحتي هذه اللحظة مع العلم أننا كنا وما زلنا نحاول إخراج الشركة من الأزمة وضخ أموال من جيوبنا الخاصة أملاً في استقرار الوضع المالي، ولكن حين جاءت أزمة كورونا، زاد الامر سوءًا. كيف نتصرف عندما نواجه دعاوى قضائية؟ وما الحل؟

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

Q: For a business loan, a cheque has been issued on behalf of the company and is signed by its manager for 557000/-. The company now is under liquidation (an order is issued by the court). Can the bank present the cheque to the police once it bounced, subsequent to the company's failure to pay the installments? If yes, under the above circumstances, what happens? How much fine it may attract from the prosecution other than a civil case by the Bank? Kindly advise!

Q: I have an LLC company in Dubai mainland since March 2013, and I'm a 49% shareholder of the company. I have taken a loan from a bank in August 2019 and have paid 7/48 instalments to the bank. Then, I was unable to pay back due to the COVID-19 crisis. I have the following unpaid debts: 1. Business loan from a bank, outstanding about 300,000/- 2. Principle outstanding credit cards on personal name: A. 60,800/- B. 15,000/- C. 5,000/- Sum of 3 cards 80,800/- 3. I have unpaid rent of business office in Dubai amount 8000/- of period Sept 2020 - Dec 2020. The landlord refused to accept to take keys as the contract ends in December. He perhaps filed some case against me. Currently, I'm out of the UAE and would like to get a benefit from the law of bankruptcy/law of insolvency.

س: كيف يمكن لشركة ذات مسؤولية محدودة أن تعلن إفلاسها؟

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?

Q: Hello, How can I file for private insolvency in Abu Dhabi?

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.

It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.

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.

للشركات كما للإنسان، دورة حياة. وحيث يبدأ الشيء، فلا بد له من نهاية، ولا باقي إلا الله. وإنه حيث نظم القانون نشأة الشركة، وعقد تأسيسها، فإنه كذلك لم يغفل تنظيم قواعد حلها وتصفيتها، ذلك لأن هذه القواعد بالغة الأهمية والحساسية، فهي تنظم طريقة أداء ديون كافة دائني الشركة، وتحصيل حقوقها، وتوزيع الأرباح أو الخسائر على الشركاء بعد بيان ما لها وما عليها. ونعرض في هذا المقال لهذه الإجراءات بحسب ورودها في قانون الشركات الإماراتي بإيجازٍ غير مخل.

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.

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.

على قدر وجود تعاملات تجارية سواء بين الأفراد من غير التجار أو الشركات أو بين كليهما، تكون هناك حالات حيث يصبح المدين بوضع مالي يتعثر فيه عن سداد المستحقات المالية تجاه دائنه، فيصبح في حالة ما يعرف بالإعسار. وقد عالج المشرع الإماراتي هذه الحالات حرصاً منه على حفظ الحقوق وإعطاء المدين فرصة لسداد ديونه، ونظم هذه العملية من خلال المرسوم بالقانون الإتحادي رقم 19 لسنة 2019 بشأن الإعسار.

بتاريخ 24/10/2023، صدر قرار الهيئة العامة لمحكمة تمييز دبي في الطعن 4 لسنة 2023 مرسياً مبدأً جديداً مفاده أن الأصل في الناس هو الإعسار وأن اليسار عارض، وأنه يتعين -تبعاً لذلك- على طالب التنفيذ أن يثبت يسار خصمه المنفذ ضده أو تهريبه لأمواله كي يستصدر أمراً بضبطه وإحضاره ثم حبسه لإكراهه بدنياً على السداد. وكما هو متوقع، أحدث هذا القرار ردود فعل كثيرة ومتنوعة، سيما وأنه قرار نوعي يقلب كثيراً من الأوضاع المعتادة رأساً على عقب ويغير من الحالة الاجتماعية السائدة الشيء الكثير.

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.

سبق أن نشرنا على هذا الموقع مقالاً عن العدالة الناجزة، وأشرنا إلى أن المعنى الصحيح لهذه الفكرة ينبغي توجيهه إلى التنفيذ، بحيث يظهر فيه عنصر الإنجاز، وتتجلى فيه صفة السرعة، وذلك بدلاً من إصدار الأحكام ذاتها بسرعة كبيرة ثم تخديرها في مرحلة التنفيذ حتى تموت.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.

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