Q: 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%.

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?

Q: Hi. Kindly advise regarding: (1) Closing a professional civil company (management consultancy) in Dubai with 4 partners + 1 local agent. There are 4 partners (all family members) who are out of the UAE. 2 partners have investor visas & 2 have partner visas. 3 visas have expired during July-Sept 18 and 1 Investor visa expiring 17/11 as being out of the country for 6 months+. Online at www.gdrfa.ae on logging in, the 3 expired visas are showing 'Inactive'. Does it mean visas are automatically cancelled & they can come on visit OR visas have to be physically cancelled at the immigration dept? The company has no assets/liability. We want to close the company. The company's labour est card is already cancelled. (2) Effect of a partner's personal credit cards' liability on the company as a he is a partner. In the above company, 2 partners have credit card dues. Is there an impact on 2 aged partners coming back to the UAE if the banks file cases & secure order on attaching the defaulting partners share in above company? (There is no business/assets). Can 2 aged partners be asked to submit the company a/cs?

Q: The query is regarding the closure or freezing of an LLC company registered in Dubai. The expert is required to get the job done while 2 out of 4 holders of 49% share are outside the UAE.

Q: I posted a question about closing a large business ($400.000) loan for our Florida start-up company to be manufacturing. We were told: "... partners who reside in countries with travel restrictions or medical conditions will be represented by the UAE central bank legalization officer who shall oversee the entire process in their absence in line with UAE COVID-19 safety measures. Furthermore, you the beneficiary is expected to take full responsibility for the legalization cost of all documentation to be used in this transaction at the Dubai magistrate court with the assistance of the UAE central bank official who shall represent you in the entire process of this transaction." The quoted fee was $6,800 to be paid in advance or at closing if we attend personally. Does this sound like a legitimate procedure for using an agent to sign loan documents? How can we conduct due diligence on this investment firm based in Kuwait to be sure we are dealing with the actual company? Thanks.

Q: Hi, We have a professional services license (2 partners) + 1 local service agent registered with DED, Dubai. The partners wish to close the business because of unavoidable circumstances. We wish to proceed with all the necessary paperwork for cancellation. Unfortunately, the local service agent is not available. We have been trying to connect to him multiple times but have not been able to reach him. The due date for the renewal of the company is coming up and we want to proceed with all the paperwork for cancellation prior to that. Kindly advise us about the options if the local service agent is unavailable.

Q: I am a 50% shareholder in a company at RAKEZ, and the 50% shareholder is my partner who has left the country and will not return. I cannot run the company alone. Next month the company is due for renewal, the expenses of which I cannot afford. I want to close the company. RAKEZ people say file a case and bring court papers to close the company. Where can I go, what should I do, can I get help? I do a small job in the shop.

Q: Hello, I am a manager of an LLC company with 25% share. In February 2003, a partner joined the company with a 25% share. After two months, he didn’t like the company and left. After two years, we did not know where he was. We just heard that he left to Tunisia before his visa expired. What to do with his 25% share, please?

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.

It is the second 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 UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on Corporate Governance for Non-listed companies.

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.

With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.