Questions & Answers
Questions & Answers
9 available 9 • View allLiquidation of a company for maneuvering of the managing partner
3
Q: My name is W. S., I am a partner in a hospitality services company with 33% in Dubai.
By delaying the operation, The managing partner is exhausting the capital of the company and driving the company to bankruptcy aiming to take it for himself.
I sent him a timely legal notice to close the company and he did not react. I would like to know the cost of placing a lawsuit for “liquidation, compensation and refund of the paid amount in the company capital plus the interest“ against him along with the lawyer professional fees for this matter.
I would like to be connected with a lawyer who is experienced in similar cases and who can handle this case.

Dec 22, 2018
1709
Return of a paid investment to a partner willing to quit
2
Q: Hi,
I invested in a hotel business in Dubai with 7 investors including me. the cost invested by all of us was 1.05 million.
One of the investors ran the restaurant full time every day, for 20 months. The guy who ran it full time cheated all of us by not paying us even a single penny in 20 months & made sure the debt goes up above AED 750K.
The other 6 investors don't have any legal proof as we only invested funds. The document owner is the guy who ran the restaurant 51% & the other 49% is on friend's wife name.
He hasn't paid salaries to staff, rent, vendors, vat nothing. We investors even invested additional 300k to pay rent initially, and even that he did not return us. He cheated us.
Now all investors have decided to kick him out & invest more funds to clear the negative 750K. I don't want to continue with these guys anymore, so I want to quit. But they are asking me to quit with zero!
I have invested AED 156500 & they are not ready to pay even one dirham. Please advise how to get at least some of my investment.
Please help.

Nov 28, 2018
450
How to implement a verbal agreement with a partner while he neglects it?

3
Q: Dear sir/madam,
I have a free zone company based in Sharjah, holding 51% shares and acting as a director, manager, and shareholder/partner. My partner who is holding 49% shares of the company is on the company's visa, as well as myself.
When he bought the company shares from my previous partner, we had a verbal agreement that he will give cash to support the company, including paying for the renewal fees, etc, because I will be the only one running the company on daily basis.
Now he is neglecting the agreement and always making excuses. The company renewal is due very soon. Am I protected on this case as it was only a verbal agreement (not a notarized agreement)?
I do have WhatsApp messages that he agreed on giving some cash to the company (not in English though). What legal action can I take to push him to give the cash to support the company?
Can I take him out of the company and what is the step to do so?


Jul 24, 2022
236
How can the majority of partners terminate the other partners?
1
Q: Dear sir/madam,
We have 5 partners in a recently opened company. Two partners are dishonest and are not reporting properly to the company.
We (the other 3 partners) want to terminate them on the basis of their wrong practice. What are the probable ways?

Jul 26, 2022
222
A new partner is delaying the payment of his share. What to do?




2
Q: Dear Lawyers,
I have a company in Sharjah FZ. I hold 51% shares and my partner holds 49% shares. I am the director, manager, and the sole beneficiary of the company bank account. We are both now under the company visa.
I, as the business owner, demand a few things for him to provide before he can benefit from the company. The point of the agreement is:
- The new shareholder needs to provide business development capital for AED 145,000, payment will be on several terms.
Since I made the change on the license and put him under the company visa, he has been delaying paying the capital.
I have been chasing him through messages and phone calls, but he is still not responding. This made the cash flow of the company a mess.
1. What legal step can I take to take him out of the company and seek compensation for the mess he made with the company?
2. Will it be better for me to file bankruptcy or to fight the legal action against him?
Thank you so much, appreciate your answer!





Aug 24, 2022
313
How to claim back money invested in a business for the fraud of partner?


1
Q: I opened a cafeteria with my colleague spending AED 120000/- each. I was an investing partner and my colleague was the working partner.
A few weeks after the cafeteria opened, we had a lot of disputes because I noticed fraud in accounts and initial setup expenses from his end.
So I decided to exit the business and I asked for my money back. But he is refusing to pay back anything. The trade license was issued in the sponsor's name and not in any of our names so I could not do anything.
Also, I paid him most of the money in cash as I trusted him then. However, I have a mutually signed agreement with the 120k mentioned as paid to him in that.
How can I get my money back?



Mar 30, 2023
311
Paid for business costs to be a partner, now ignored. How to reclaim my money?



2
Q: Hello,
I met someone who needed financing for the business and offered me a business partnership. We entered into an agreement to add my name to the trade license as a partner, working on a 75/25 ratio.
I incurred various expenses for his office, such as paying past DEWA bills, Chamber of Commerce payments, unpaid chiller bills, internet bills, and phone bills.
All expenses were covered from my bank, and I have all transaction details with bank statements reflecting payments towards his office. I also paid cash salaries for overdue employees.
However, he is not creating a legal agreement with me nor returning my money despite not proceeding with the partnership. I am seeking advice on legal options for such financial fraud.
I have all documents related to him and his company, including bills paid towards his company, as well as screenshots of our conversations where he agreed to make payments but has not followed through.
Kindly help me find a suitable way to tackle this situation where my funds are stuck.




Jan 10, 2024
86
How can I get money invested in a company after I got cheated by my partner?



1
Q: Hello.
I invested almost 60,000 dhs in a company to be a business partner in the future and get power of attorney.
But my business partner lied to me, he took all the money and now our business is almost closed.
I asked him to pay me all the money I gave to him (with papers he signed in) and he is not paying me. It has been like this for almost 2 years now!
Do I have any chance of getting my invested money back?
Thanks




Mar 7, 2024
170
What is the procedure to conduct the resignation of one partner in an LLC company in Dubai?


4
Q: What is the procedure to conduct the resignation of one partner in an LLC company in Dubai?
Both partners are Indian. Kindly provide online and offline procedures, duration, and relevant documents along with legal fees as well as professional fees.



Mar 20, 2024
185
Legal blog
1 available 1 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
Mar 14, 2017
6316
Laws & Regulations
1 available 1 • 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
29525

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451 451 answers •
View allAre there any restrictions on a diplomat buying property in the UAE? 0
Hello,
Is there any restriction on a diplomat buying property in the UAE, where he works as a diplomat at his country's consulate?
Feb 20, 2025
69
If someone has a case in the UAE, can they travel to another GCC country? 0
Hi.
One of my friends joined a Telegram group. They said, "We will transfer some amount to your account, and your task is to transfer this amount to another account. Once the task is completed, you will get 30 or 50 AED per task."
He completed 3 to 4 tasks, but he realized it was not good, so he stopped. After one week, when he opened his account, it was blocked, and the bank said, "We are conducting an investigation; after this, we will let you know."
After some days, he had an accident and went to his home country. He then received a call from a landline number, which was from the Abu Dhabi police station.
They said, "We have received a complaint against you; come to our investigation department." However, due to his surgery and treatment, he could not go.
After some time, his bank account was reopened, and he did not receive any further calls. I want to know, if he comes back to the UAE or goes to any other GCC country, will he face any problems?
If someone has a case in the UAE, can they travel to another GCC country?
Please advise!
Feb 17, 2025
134
What can I do if my employer refuses to pay me and I have no contract? 0
Hello,
What legal action can I take in case the employer refuses to pay my salary and I don't have a contract with them?
Feb 18, 2025
122
I want to open an online shop. Do I need a license to open an Etsy shop? 0
I currently live in Sharjah and have a UAE residence visa but I am not a UAE or GCC national. I want to open an online shop (Etsy or Shopify) to sell handmade items, such as crocheted goods, bookmarks, greeting cards, etc.
Do I need a license to open an Etsy shop?
If so, which license do I need to sell my products online, including UAE and worldwide?
How much would it cost me?
Can I keep my residence visa (sponsored by my father) and not change it?
Feb 14, 2025
116
How can we locate a person with an ongoing legal case? 0
Hello,
I am seeking your legal advice regarding a friend who was previously imprisoned in Abu Dhabi. His case there is now closed, but he has another ongoing case in Dubai.
Currently, we have lost contact with him and are unsure of his whereabouts. How can we check where he is or access any other legal facility?
Are there legal procedures to locate a person with an ongoing case?
What steps should we take to get more information about his status and legal position?
Feb 11, 2025
138

Other answers by
3 3 answers •
View allSelling a share in a business without knowing its value 0
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
795
Checking a bounced cheque case and paying fines from outside the UAE 0
Hi,
I have a cheque bounce case filed against me by the bank in Dubai. The bank is not willing to negotiate at all no matter the solution offered.
How do I pay the fine to resolve the case with Dubai Police while being outside the country? Will I be able to get a visit visa with a pending criminal case?
I would require a visit visa to enter the UAE again. Kindly advise with the possible options to pay the police fine being outside the country.
[Cheque value AED 95,000 and the fine is AED 5,000].
Dec 30, 2019
4048
Claiming the amount of a labour judgement from a closed company 0
Hi,
My wife filed a case against her employer due to non-payment of an amount over 60,000 AED.
She won the case and it has been a couple of months but we did not receive the payment because the facility where she was working with has been closed already.
Please advise what we can do now.
Dec 29, 2019
942
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