Q: Hi Rajasree, I am trying to seek help for my brother's business in the UAE which is under financial distress right now and some cheques have bounced. Additionally, labour payments were not done for the last 3 months. His health deteriorated due to the stress and he left the country about 1.5 weeks ago. We would like to file for bankruptcy and liquidate the business. Please let me know if your firm can help with this. Thanks. Best regards, A.Dec

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

Q: If a company is liquidated or has filed for liquidation and there are PDCs jointly signed by any of the signatories [company employees], then please advise if the joint signatory is still liable for such PDCs (which have bounced, but no case is filed).

س: متى تسقط الديون عن الشركات ذات المسؤولية المحدودة وهي مازالت موجودة؟ وهل يُحاسَب الشركاء أو المديرون (بالغرامات أو الحبس) أمام المحاكم المدنية مع أنهم جميعًا خسروا كل ما لديهم من أموال ولم يقصروا في إدارة الشركة وهذا مثبت بالمستندات؟

س: أعمل في تنظيم الفعاليات وقمت بتأجيل إحداها بناءً على قرارات الإجراءات الاحترازية الصادرة من الجهات المعنية، وحاليًا يطالبني بعض العملاء برد المبالغ المُسدّدة منهم، كما أرسل أحدهم إنذارًا من محاميه. هل أنا مُلزَم بالسداد بالرغم من عدم إلغاء الفعالية وإنما تأجيلها لحين السماح بتنفيذها من الجهات المعنية؟ وكيف أرد على الإنذار؟

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.

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.

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.

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.