Questions & Answers
Questions & Answers
6 available 6 • View allLiability of company partners against the actions of a partner


0
Q: Can I be held financially/legally liable for any actions of my ex-partner after exiting the business by share transfer?



May 14, 2019
1203
Holding company partners liable for their part of its debts
1
Q: Hi Mr Younis,
I require help to sort out my father's legal issues pertaining to a company he had.
There are dues with a bank in the UAE and his partner who was also a signatory on the cheques has managed to remove his cases and has left my father to deal with the liabilities albeit he was the one who misused the company funds.
I have two questions:
1) How can someone who was a partner of a company absolve themselves of al legal recourse albeit their signature is on all bounced cheques?
2) Would your law firm be able to help with getting the cases resolved and getting my father's business partner take the responsibility for his share of the liabilities?
Thank you

Aug 13, 2018
938
Partnership withdrawal and claiming the paid money
1
Q: I opened a bar business in RAK with a Lebanese partner. I financed it with AED 280,000 and he does the operation.
Unfortunately, I withdrew my partnership as I cannot provide more money as he asked. We agreed on making an agreement that I will cancel my partnership and he will pay me the said amount every month by AED 5,000.
The problem is that he didn't pay until now and its been 2 years. Every time I ask him he is saying no money yet, till he told me that we need to re-calculate the AED 280,000. He didn't meet me to re-calculate.
Then, he moved the bar from the rooftop to the 4th floor and it's much bigger. So, he is saying that the bar is a different one already and we are not talking about the same bar anymore.
I have an agreement signed, that if he gets a partner, he will pay me as well as if he sells the bar.
Do I have any chances of getting the money back?

Jan 18, 2018
1407
Previous partner's liability for the outstanding bills of Etisalat
0
Q: I was a partner in an LLC company in Dubai from April 2017 to April 2018 with 4 partners having equal shares. In April 2018, when the trade licence was renewed, it was renewed with only 1 partner which was not me (earlier 3 partners were removed).
So the new sole owner who was an existing partner earlier didn't update the Etisalat with the new trade licence. How am I liable for the outstanding bills which are around 13000 Dhs even though my name is not included in the trade licence?

Sep 9, 2020
376
How to clear liability after leaving a mainland company?
1
Q: I was a partner in a mainland company. During my tenure, I had given a personal guarantee for a bank loan for a mainland LLC company.
I have exited the company. The company is in poor financial condition. I wanted to know if the personal guarantee will/can be enforced if the company fails to pay the bank debt.
Can my personal assets in the UAE and INDIA be called upon?

Dec 15, 2020
310
The possibility to prove that a civil company is a commercial company
1
Q: Dear sir/madam,
There is a civil company with a professional license that owes me 925,000 AED as per an existing execution lawsuit. The company has not paid me in the last 5 years despite one of the partners/managers being detained for one month.
I met the partner/manager of the company and he said he will start a lawsuit to declare that his civil company is a commercial LLC. Then he will only have to pay 50,000 AED (declared capital of his company as per his MOU of the civil company).
He showed me a precedent lawsuit wherein the cassation court stated that they are responsible to judge if a company is civil or commercial, irrespective of the license.
Question 1: Have many companies with civil licenses been deemed to be commercial companies recently? Is it easy to prove that a civil company is a commercial company?
Question 2: What type of evidence has the partner/manager to produce to prove that his company was a commercial company even though it has a 25-year-old civil license?

Sep 25, 2022
228
Legal blog
1 available 1 • View allAmendments to the UAE Company Law 2
An interview-format article covering the topic of the amendments to the company law in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
May 24, 2021
734
Laws & Regulations
2 available 2 • 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
29523
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
32997

Other answers by
34 34 answers •
View allHow long should the work visa take to be issued by authourities? 0
My visa is not yet approved by immigration but I have already signed my offer letter from my new company.
It has been 2 months already without any information on my new visa.
What could be the reason for the delay in my visa? My visa status is active until 9/04/2023.
Feb 16, 2023
149
Is it possible to resign after one year to go back to home country? 0
Hi,
Good day!
I have been working in my company for about 1 year and 1 month and I want to resign to go back home to my country.
Are there any consequences for that?
Any advice, please?
Sep 19, 2022
219
Reducing the salary of an employee before termination 0
Hello Nicole,
Greetings!
I have been working in a private company in Dubai for the last 13 years under an unlimited contract. Recently, they have made my position redundant.
I am now serving 3 months notice period as per the labour contract (2 months already served, I am now in 3rd and last month).
My employer has put me on forced paid leave to adjust my notice period against leave days balance. I need some clarification per below, please.
1. The employer is paying me a full salary for a notice period of 3 months. However based on the recent announcement from the Ministry of Labor (for Private Co. employees), can my employer reduce my salary temporarily/permanently in this last month of notice period?
2. If the answer to question 1 is YES, how will it impact the calculation of my end of service benefits like gratuity or leave balance encashment? Will it be recalculated based on the revised (reduced) salary?
3. Am I eligible to claim any other Termination/redundancy pay apart from gratuity and leave balance encashment?
Apr 6, 2020
1076
Charging an employee for employment expenses 0
Hi,
I am a first timer here in Dubai. My employer wants to charge me all her expenses incurred during my application; like medical examination, visa, work permit and the money she gave to my agency.
What should I do?
Mar 13, 2020
602
Getting the amount of a bounced cheque after car buying fraud 0
I sold my car and the buyer gave me a cheque. The cheque bounced because the account is closed. He is doing this as a regular business.
I have already filed a complaint to the police station and I'm waiting for the judgment from the court. Maybe he will get the fine only.
How can I get my money?
Which case should I file: a civil case or a car buying fraud case?
He may not have anything under his name. If a civil case is filed against him, he knows how to avoid this case .This person has more than 14 cases. Recently, he got out of jail. The issuer of the cheque is a local Emirati guy.
Feb 28, 2020
619

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305 305 answers •
View allالضمانات التي تحصل عليها شركة التمويل مقابل إعطاء قرض 0
حصلت على قرض شخصي وكريدت كارد من مؤسسة للتمويل بإجمالي ٥٠ ألف وتعثرت لفترة والآن يطالبونني بدفع مبلغ ٢٠٠ ألف درهم بالفوائد وكنت أعطيتهم شيك بقيمة ٤٢ ألف وقتها.
سؤالي:
هل يوجد سند لأمر داخل عقد القرض (الأبليكيشن) الخاص بالشركة التي وقعت معها في البداية؟
أم لا يملكون ضمانًا آخر يُمكِّنهم من مقاضاتي به سوى الشيك الذي أعطيته لهم فقط؟
مع جزيل الشكر!
May 19, 2021
481
تقديم دعوى ضد مقاول استلم دفعتين من المال وأوقف العمل 0
هناك مشكلة مع مقاول إذ اتفقنا على بناء ملحق داخل منزل خاص ووقعنا العقد واستلم أول دفعة.
اشتغل حسب العقد واستلم الدفعة الثانية وأوقف العمل ويرفض المواصلة. تبين لي بعدما حاولت أن أقدم شكوى ضده أنه يستخدم ختم وعقد لشركة منتهية في سنة 2013 ولا يوجد لديه أي ترخيص.
كيف أستطيع أن أشكوه وبنفس الوقت أواصل البناء؟
May 20, 2021
961
Can the wife file for maintenance in the UAE after judgement in home country? 0
My wife and I are non-Muslims. Divorce was settled in our home country court which decided that I am the custodian of the children and no alimony has to be paid to her.
Children are living with me here in the UAE. However, she still resides here in the UAE using a tourist visa. She is planning to file a Maintenance Case against me in the UAE Family Court.
Can she do that?
Am I obliged to pay her alimony?
Dec 7, 2020
1377
ماذا بعد الحصول على حكم في قضية عمالية؟ 0
فصلتني الشركة فصلاً تعسفيًا وقمت بمقاضاة الشركة والحمد لله حصلت على حكم بمستحقاتي المالية من رواتب متأخرة ومكافأة نهاية الخدمة.
تقدمت بطلب تنفيذ ولم تدفع الشركة لي أي مبالغ حتى الآن!
ما الخطوة الواجب فعلها في هذه الحالة؟
Oct 8, 2020
555
Cancellation of an off-plan property and seeking refund 0
Hello
I bought an off-plan apartment with a developer, paid half and the other half was supposed to be paid on receiving the apartment which was supposed to be received end of 2019.
But they postponed it till March 2020, and now the project is way behind and no improvement at all as I'm in phase 2 and they are still building phase one.
What can I do to get my money back?
Sep 26, 2020
669

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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
68
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
132
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
116
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
113
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
133

Other answers by
109 109 answers •
View allCancellation of SPA for delay in delivery and defaulting on payments 0
Hi
I bought an off-plan property from a developer in downtown during the peak time. My payment plan was based on construction with completion being Dec 2019. I have paid more than 50%.
I requested the developer to readjust my payment plan as the project is delayed. They moved on payment forward and sneakingly changed completion date to Aug 2021 in the document. The SPA still says Dec 2019.
Now I'm struggling to pay the next payment due to COVID-19 and project is completed 56% as par Dubai land department and 60% as per the developer. The developer is asking for payment and calling me every day.
My question is can I still use the delay in the project as a clause to cancel my unit?
Can I cancel my apartment and how much can the developer deduct?
After selling me, the developer started offering customers post-handover payment plans for 4 years, which is very unfair as even if I complete my payment, no one will buy from me as the developer is selling something with 4 years post-handover.
Can legal help be provided in this regard?
Jun 7, 2020
880
Easy way to know whether a job offer is real or scam 0
I am a health professional in Canada.
Years back, I posted my CV to work in the middle east on a job site in the gulf. Last week, I got 3 emails claiming from a general hospital in Abu Dhabi, a hospital Dubai and another medicare hospital in Dubai for online recruitment.
they showed interest in my CV. All emails were from free accounts (gmail.com address). I chose then to forward an email to the concerned HR department of the concerned hospitals.
I forwarded one email to the official email of one of the hospitals (as given on the hospital site). They replied and said, yes, the email is legitimate and you can apply with confidence.
Now I got an offer letter from Dubai hospital with handsome salary offer but from a Gmail address. They're asking me to start position in one month only and asking to contact a travel agency based in Dubai.
Is it a scam or true? I have forwarded the email to the HR department of the hospital to determine authenticity.
Jun 7, 2020
14625
Employee rights in case of changing an unlimited contract to a limited contract 0
Hi,
What is the law if an employer wants to change a contract from an unlimited to a limited contract?
Is the employer liable to pay the 3 months arbitrary dismissal (if valid) + other monies owed prior to changing the current unlimited contract to a limited contract?
Jun 7, 2020
4877
Terminating the SPA and claiming refund for changing specifications 0
Can a developer change the layout of the building as shown at the launch event and part of all brochures/online advertisements/model under the pretext that the same is not included in the SPA?
For the launch, we got convinced with the building design and layout but at delivery, it’s changed without prior intimation.
Can I make a legal case or can they take the guise that it’s not part of the SPA?
Can I get a refund for the 30% advance payment and refuse possession of the unit?
Jun 8, 2020
695
Inability to continue paying the installments of a property because of COVID-19 0
Hi sir,
I live in the UK. I am an investor and a broker for a property development company. One of my customers bought an off-plan property from it i.e just Cavalli Villa 2 years ago. 33% was completed and handover is due in 2021.
My client paid part of the deposit around AED 390000 (£80000) and she has been paying to the project for the last two years until early this year when COVID- 19 hit the UK. Since then, she has been ill and lost her job and, therefore, she is unable to pay.
My customer received a letter from the company saying that if the outstanding amount is not paid within 30 days, then they will take her to court. They say that they would cancel her plot and she will lose all MONEY paid so far.
My client needs payment delay until her situation improves but this request has been declined. The money secured under the ESCROW account. Can the developer have the power to take money from the escrow account?
What is her right under Dubai law? Can she do anything to avoid court order? The UK is in lockdown at the moment with no proper or normal banking functions.
Thank you!
Jun 9, 2020
1510

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Other answers by
183 183 answers •
View allThe landlord refuses to wait for days beyond rental cheque due date. What to do? 0
Dear sir/madam,
My rental cheque is due tomorrow and unfortunately, I’m not able to honor it. I asked my landlord to wait a couple of days but he doesn’t want to wait and said that he is going to cash the cheque tomorrow.
Of course, the cheque will bounce, what would be the procedure then?
Do I have a certain amount of days before eviction to pay the rent?
Sep 25, 2022
471
What happens when the property is sold mid-lease? 0
Dear Sir/Madam,
Does the existing tenancy contract between the tenant and the previous owner remain in force even after the new landlord has purchased the property in the middle of an ongoing lease?
And when should a new tenancy contract be made?
Should it be made immediately after the property has been sold, or at the end of the ongoing tenancy contract signed between the previous owner of the property and the tenant?
Also, does a new contract have to be in place for the tenant to exchange the cheques, or does the existing tenancy contract with the previous owner remain valid for the purpose of exchanging the cheques?
Apr 5, 2023
765
Evicting an employee from school accommodation while a labor case is pending 0
Dear Sir/Madam,
I was wrongfully terminated by my school under Article 44 on March 20th, 2023. I have a case in the labor courts, and the first hearing is on April 4th, 2023.
However, my employer is asking me to vacate the school accommodation. I asked the Ministry of Labor and the courts, and they informed me that the school cannot evict me until the case is resolved.
Is this information correct?
I am currently unemployed and have nowhere else to go until I find another job.
Apr 3, 2023
126
If I have a travel ban in KSA, can I travel to the UAE on a work visa? 0
Hi,
May you and your family be blessed.
I'm extremely tense and need your kind feedback on the following issue.
If I have a travel ban in KSA, can I travel to the UAE on a work visa?
I have been visiting Dubai on a tourist visa without any problems.
The ban was imposed because I had to leave KSA suddenly and could not return after an exit-entry, and I was unable to pay back my car EMI and credit card payment totaling 30k SAR, which I intend to pay off gradually now.
When I left KSA, they only had my fingerprints at the time. I also understand that while coming for a visit to Dubai, only a retinal scan is done.
On the other hand, when obtaining a work visa, UAE takes and registers fingerprints as well. Could this lead to any issues for me?
I have finally obtained a better-paying job after a long time and can finally save up to pay off my debts. The case registered for which the travel ban is imposed is only for SAR 16000.
As of now, I cannot afford to hire a lawyer to check in UAE.
Thank you for your help!
Mar 29, 2023
1875
Tenant's rights: Can my landlord evict me, raise my rent, and ban my pet? 0
Dear Sir/Madam,
My landlord wants to evict me from the property where I reside. They have not provided a court order for eviction within the past 12 months.
Additionally, they are requesting a 40% increase in rent and are insisting on a 6-month fixed-term renewal, despite the RERA index indicating no such increase.
Furthermore, they have included an unreasonable clause that prohibits pets, even though I have lived on the property with a pet for over three years.
What options do I have if I do not agree to these demands?
Mar 16, 2023
447
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