Q: Hi. I would like to file for bankruptcy for one of my mainland LLC companies under the new bankruptcy law in the UAE and would like to connect with law firms that provide this service. For the first meeting with such law firms, I am looking for free consultation only. Thanks.

Q: Hello, I hope you're all doing well during this tough time. I have a question in regards to bounced cheques, specifically corporate cheques. I have a cheque for AED 800,000, and it has bounced. The owner of the corporate has asked for a month to pay back. However, I am worried he will leave the country and not honour his obligation. My questions are fairly simple: 1) Am I to put a case on the individual who signed it or the corporate? 1) If I put a criminal and civil case on the corporate right now and he's unable to settle amicably, can I put a travel ban on the owner (who signed) as it is a corporate case? 2) Does the new insolvency law as of late 2019 also apply to corporates? 3) Is the owner personally liable if the company doesn't have assets or cash?

Q: In the UAE, a company in financial difficulties should go for bankruptcy or liquidation? What is the cheaper and faster option provided the owner is a manager and partner in the company?

س: مرحبًا، أنا مواطن من دولة عربية وعملت في دبي. أثناء عملي سجلوني بالشركة بصفة مدير عام ومفوّض بالتوقيع مع تثبيت اسمي على رخصة الشركة. علمًا بأن الشركة ذات مسؤولية محدودة. خلال تلك الفترة وقّعت على شيكات وتم صرفها من قبل المستفيدين ولكن بعد ذلك قدمت استقالتي وألغيت إقامتي في الإمارات وقدمت طلب إلغاء اسمي من رخصة الشركة بصفة مدير عام. بقي شيك واحد من الموقَّع عليهم غير مصروف وهو 21 ألف درهم بدل إيجار مكتب. لم يُصرَف الشيك من البنك بسبب عدم وجود الرصيد لصرفه؛ علمًا بأنني غادرت البلاد في هذه الفترة وألغيت إقامتي ولكن استغرقت الشركة 4 أشهر لإلغاء اسمي من الرخصة واستبداله بمدير آخر. كما أنه هناك شيكات أخرى أصدرتها الشركة مُوقَّعة من مفوِّض آخر بالتوقيع ولم تُصرَف حتى الآن. من الواضح أن الشركة عليها التزامات مالية أخرى ولم يتمكن الشركاء من حلها. علمًا بأن الشركة قد أغلقت دون إعلان إفلاس. أرغب في الاستفسار عن الالتزام القانوني بحقي بخصوص الشيك الموقَّع وأي التزامات قانونية أخرى مترتبة على الشركة وارتباطي بها. في حال سفري إلى السعودية أو أي من دول الخليج، هل يترتب على ذلك أي ملاحقة؟

Q: Dear Experts, I had an LLC company in Dubai, and one of my suppliers filed a case against my company due to a bounced cheque. The cheque was signed by the former finance manager (who had POA just to sign the cheques). Now, this supplier has made the employee a party in the case alongside the company and imposed a travel ban on the signatory (finance manager). My company has been closed for the past year. I need your expert advice on this matter. First, I want to secure the release of my former employee, and then I need to know how to protect myself from this liability, as the company is closed and I do not have the funds to settle the liability. Please Advise!

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.

This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.

This article tries to explain the concept of Force Majeure and its application in residential tenancy contracts in the light of a recent RDC judgement.

An interview-format article covering the topic of rental disputes amidst COVID-19 in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

على قدر وجود تعاملات تجارية سواء بين الأفراد من غير التجار أو الشركات أو بين كليهما، تكون هناك حالات حيث يصبح المدين بوضع مالي يتعثر فيه عن سداد المستحقات المالية تجاه دائنه، فيصبح في حالة ما يعرف بالإعسار. وقد عالج المشرع الإماراتي هذه الحالات حرصاً منه على حفظ الحقوق وإعطاء المدين فرصة لسداد ديونه، ونظم هذه العملية من خلال المرسوم بالقانون الإتحادي رقم 19 لسنة 2019 بشأن الإعسار.

بتاريخ 24/10/2023، صدر قرار الهيئة العامة لمحكمة تمييز دبي في الطعن 4 لسنة 2023 مرسياً مبدأً جديداً مفاده أن الأصل في الناس هو الإعسار وأن اليسار عارض، وأنه يتعين -تبعاً لذلك- على طالب التنفيذ أن يثبت يسار خصمه المنفذ ضده أو تهريبه لأمواله كي يستصدر أمراً بضبطه وإحضاره ثم حبسه لإكراهه بدنياً على السداد. وكما هو متوقع، أحدث هذا القرار ردود فعل كثيرة ومتنوعة، سيما وأنه قرار نوعي يقلب كثيراً من الأوضاع المعتادة رأساً على عقب ويغير من الحالة الاجتماعية السائدة الشيء الكثير.

Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.

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.

The provisions of this Federal Decree-Law No. (51) of 2023 Promulgating the Financial Restructuring and Bankruptcy Law, known as the "Bankruptcy Law" governs Financial Restructuring and Bankruptcy regulations in the United Arab Emirates