Q: I am looking to buy a company in Dubai. I would acquire 75% of the company. What can the other owner with 25% do in the company? A: His share power is limited to the votes that he has by virtue of how many shares he holds. Depends on the licensing authority's regulations and the memorandum…

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The rights of company shareholders based on their shares

Hello Mrs Yamalova,

I am looking to buy a company in Dubai. I would acquire 75% of the company.

My questions are:

What can the other owner with 25% do in the company?

What is his share power, so to speak?

Thank you for your help.

Ludmila Yamalova

HPL Yamalova & Plewka DMCC

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26 Jan 2020, 06:10

Dear Questioner,

Generally, his share power is limited to the votes that he has by virtue of how many shares he holds.

The specifics of what a minority versus a majority shareholder can do ultimately depends on the licensing authority's regulations and the memorandum and articles of association.

Should you require further tailored substantive legal advice, kindly contact my firm via phone or email.

Regards,

Ludmila

26 Jan 2020, 07:21

Mrs Ludmila,

Just one more question.

Is there any legal way a shareholder can kick out another shareholder without his consent?

26 Jan 2020, 07:33

No, generally, there is no legal way that a shareholder can kick out another shareholder without his consent.

However, if there are legal grounds (for example, fraud) for his removal, you may request an order from the court to have him removed.

Additionally, if you have not bought 75% of the company, you may request for the shareholders to have the 25% shareholder removed before you buy-in.

26 Jan 2020, 07:54

Mrs Ludmila,

Thank you for help and answers.

I will contact your law firm for future help.

Best regards

26 Jan 2020, 07:58

We look forward to it and will always be delighted to assist you.

Kind regards,

Ludmila

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The rights of company shareholders based on their shares