Questions & Answers
Questions & Answers
8 available 8 • View allPassing a resolution in an LLC company without informing a partner
0
Q: Dear Madam,
What is the requirement to pass a special resolution in an L.L.C company?
My friend is a 24% partner in an L.L.C company and the other two partners are a local sponsor (51%) and a third-person (25%) shareholder.
Recently, they debited from my friend's account a huge amount on account of 50% rent for the last 13 years. To make this transaction, the local partner and the other 25% partner, who is the owner of the property, jointly passed a resolution for charging rent for the last 13 years without informing him in advance.
I would like to know: is this valid?
What are the requirements to pass a resolution in this type?
No one informed my friend in advance about this resolution. Is this resolution valid?
My friend is the affected party. What is the local company law saying?
Kindly reply!

Oct 1, 2020
426
Settling a disagreement among founders regarding a partner's role


2
Q: We have a founders' disagreement and need a third-party expert opinion to resolve the issue.
Founder A (Founder & CEO) - Holds 51% equity in the company.
Founder B (Co-Founder & Chief Business Officer) - Holds 39% equity in the company.
The rest of the equity is split with angel investors.
The disagreement is between the founders.
Founder B is responsible for business development and sales. After clearly raising several times that Founder B is not brining revenue, not having proper sales pipeline to estimate our growth factor, justify current and onboarding investors, Founder A wants to change the role of Founder B.
Since we have 4 years vesting, Founder A is asking justification to Founder B's role and wants to bring in a new person by stopping equity vesting for the future for Founder B.
However, Founder B is not willing to agree with this and is asking for both parties' equity dilute; not justifying to Founder A why Founder B is failing in the role.



Aug 18, 2020
352
Alternative dispute resolution between the owners of a company 
2
Q: I have co-founded a UAQ FZ this year and I am in a dispute with my co-founder.
We had several discussions on discontinuing the partnership after our license expires. I had an uneven share of responsibilities and have voiced this for a while, even to our advisor during mediation sessions.
We built our community, social media, and email database together. I said we should leave with the partners we brought in and go our separate ways once our license expired. All costs for the business have been paid equally.
With few months left of our license, my partner blocked me from my email and access to our database. The domain and email are in his name, and he is holding these as a hostage even though I am 49% owner.
I understand he is 51% owner and manager, but does he has the right to do this and hold the company domain and email under his account?
He is abusing his role as a manager and domain owner, and I wanted to know what my legal rights are here as co-owner.

Nov 1, 2017
1926
Obligation of the cheque signatory when he wants to leave the company
0
Q: I am working in a tourism company in Sharjah, the 100% ownership is with the sponsor. The company started in March 2019, after 3 years only, to change to LLC as per the license.
The sponsor gave me power of attorney to open a bank account so I am signing on cheques and all is going perfectly.
My company has 7 partners and they took various letters on the company letterhead and stamped for mutual agreement, and also my 2 blank cheques and one checkbook are with them.
Please advise, is there any issue if I quit the company?
I want to repay AED 50000 to the company because I paid credit to customers still not received, and I will pay but need few months time to repay the same. They threatened like talking more.
Please advise and how can you help

Oct 12, 2020
513
إنهاء شراكة واسترداد الأموال بسبب مماطلة الشريك


1
س: السلام عليكم ورحمة الله وبركاته،
من فضلكم استفساري هو:
اتفقت مع صاحب شركة خدمات في دبي على الدخول معه شريك بنسبة في الشركة. سلمته مبلغ 150 ألف درهم إماراتي ولكن نقدًا، وللأسف لا يوجد عندي إثبات لعملية التسليم إلا رسائل الواتساب وكذلك اتفاقية عرفية مؤشَّرة بختم الشركة.
ونظرًا لتهرُّب ومماطلة صاحب الشركة في تسجيل اسمي باقتصادية دبي وأيضًا عدم تحصيلي لنسبتي من دخل الشركة، قررت استرداد رأسمالي من عند هذا الشخص.
ما الحل في هذه الحالة؟
وجزاكم الله خيرًا!



May 10, 2022
266
What is the procedure to conduct the resignation of one partner in an LLC company in Dubai?


4
Q: What is the procedure to conduct the resignation of one partner in an LLC company in Dubai?
Both partners are Indian. Kindly provide online and offline procedures, duration, and relevant documents along with legal fees as well as professional fees.



Mar 20, 2024
198
Can a proxy agent act as a signatory between the company and free zone without using an Emirates ID?


0
Q: I have a query as to whether a proxy agent can act as a signatory between the company and the free zone without using an Emirates ID or Emirates Pass.



Jun 19, 2024
70
How can I withdraw from a family business partnership while ensuring no liabilities?




1
Q: Hi,
I’m one of three partners in a family business, where a father holds 50%, and two siblings hold 25% each, with 0% for the service provider. Does the service provider have any claims on the company if something happens to one of the partners?
I’m currently the guarantor for a loan, and I have authority over vehicle sales and purchases. What are my rights to withdraw from the partnership? How can I do it legally without causing any liabilities for myself?
Can the other partner take over as loan guarantor instead of me? What are the procedures? My father has authorized the siblings as dual signatories for bank cheques, but the bank has not yet approved this.
Can I withdraw from the partnership before the approval is finalized?
Please advise on the rights of a partner when withdrawing from a partnership.





Sep 16, 2024
75
Legal blog
2 available 2 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
Mar 14, 2017
6332
What Can I Do If I Have a Dispute With My Joint Shareholder? 5
An interview-format article covering the topic of shareholder disputes in the UAE and pre-emptive measure to be considered. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Mar 24, 2020
5902
Laws & Regulations
1 available 1 • 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
29548

Premium
Other answers by
177 177 answers •
View allHow to liquidate a free zone company after the death of one partner 0
I am a company owner In Shams free zone of 50 per cent share and have a partner visa. My partner was a Russian who went to Russia and died.
When I went to the free zone to cancel my visa and close the company, they have asked me to get his attested death certificate and NOC from his heirs.
The problem I am facing is his family doesn’t want to give the death certificate nor they want to give NOC. Now my resident visa validity is over and I am on fine every day.
Neither the free zone is cooperating nor the partner's family. What is the other way I can cancel my visa and close the company?
Can someone guide me, please?
Apr 19, 2021
700
How the objection of a client be dealt with after being notified for termination by DLD? 0
I have been notified by DLD that I am in breach of an off-plan sales agreement, and the developer wishes to terminate the agreement.
The date on the notice is March 9, 2021, and I received it from the developer on March 11, 2021. The notice says I have 30 days "from the date of being notified" to make the outstanding payment.
On the termination notice from DLD, a list of objections is present. One of the objections states that the developer must hand over the final SPA to me.
In this case, I have not received the final SPA from the developer. I made an objection in writing to the DLD pointing this fact out and sent it via email, and received a confirmation of the same from DLD by return e-mail on April 6, 2021.
30 days from March 9th is April 8th, or from March 11th is April 10th. Does the developer have to respond to my objection before the DLD will allow them to terminate the agreement?
In this case, will the time I have to make the payment be extended by any period?
Apr 19, 2021
1414
Opening a trustee with wife and signing a postnuptial agreement 0
I would like to open a trustee with my wife and sign a postnuptial agreement.
Apr 19, 2021
461
Closing a business while the local service agent is not reachable 0
Hi,
We have a professional services license (2 partners) + 1 local service agent registered with DED, Dubai.
The partners wish to close the business because of unavoidable circumstances. We wish to proceed with all the necessary paperwork for cancellation.
Unfortunately, the local service agent is not available. We have been trying to connect to him multiple times but have not been able to reach him.
The due date for the renewal of the company is coming up and we want to proceed with all the paperwork for cancellation prior to that.
Kindly advise us about the options if the local service agent is unavailable.
Apr 19, 2021
812
Returning to the UAE to run business after being convicted with a crime 0
Hi,
I want some information regarding my uncle. He was arrested in November 2015 and was in prison until 13 June 2016 when he was deported to Pakistan.
The reason for the arrest was that my uncle had his own business in Sharjah and he was involved in a case where his employee accused him of attacking him and other allegations. He was arrested and convicted.
He needs to reenter the country as he has his business in Sharjah but I believe he is blacklisted/banned. How can I find out if he is blacklisted/banned and how can it be removed to allow my uncle to reenter the country and take over his business?
Is there any way of helping to resolve this issue?
I know that if he enters on a visa, he could be arrested at the airport, and don’t want that to happen.
Thank you!
Apr 5, 2021
508
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