Questions & Answers
Legal way to resolve legal issues among partners of a company
One partner wants to leave the company. What are the options if the other partners are not willing to let him go?
It's a tech company and the partner in question is the CTO, without him, the company will almost certainly fail. There are accumulated operational losses to the tune of AED 4 million. It's a Dubai Mainland LLC.
The second partner is a Dubai company who acts as a collaborator in some of our projects. We recently found out that the GM and a couple of top managers in that company are building a clone of our most promising product.
We can prove it too. Both the teams happened to bid for the same opportunity and the customer realized both are exactly the same product and informed us.
Is this enough legal grounds to demand release from the partnership?
Hello,
I trust you are well.
In these types of scenarios, we have to consider preexisting documentation that could provide guidance.
For example, a partnership agreement or a shareholders' agreement may have a number of remedial options that may be implemented.
Alternatively, in the event of no agreements in place, we must refer to the relevant UAE laws that do not only govern the conduct of your company, but also the partners of the company.
Lastly, relating to the breach, there are a number of legal measures that can be made effective. However, providing sufficient proof of these is vital.
We are happy to provide assistance and guide you through this process.
For further information, please contact us by email.
