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Safeguarding the interests of a partner not involved in operation

I have a 5% partnership in a business (LLC) which is operated by another person who holds a partnership of 44% and the rest 51% is UAE National's share (as required by law). I also have a Partner's Visa from this company.

As I am not involved in any decisions or operations of the company, how can I be safe without any risks if the company gets involved in any legal issues like any huge fines for any other irregularities?

Will I be liable to pay if there are any fines? If yes, then how much would I be liable to pay? How much percentage would be my Share? Can I make some kind of contract to safeguard myself?

Hayyan Khan

Avrio Legal Group

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10 Jul 2020, 05:57

Hi,

There should definitely be a contract in place to protect yourself legally.

Since you have no direct involvement in the company, you must indemnify yourself through an agreement based on The relevant UAE laws.

If you’d like to further discuss this, please contact us at our email.

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Mohammed Bani Hashem

Mohammed Bani Hashem Advocates & Legal Consultants

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11 Jul 2020, 06:44

Dear Questioner,

Pursuant to the query, we need to know your matter in detail and need to see your contract to give you proper advice.

Kindly contact us on the phone or email to have a detailed discussion.

Also, you can make a contract as per the UAE rules to protect yourself from future risks. If you have any queries please do not hesitate to contact us.

Thank you.

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