Questions & Answers
Dividing company loan between partners
My civil company has 2 partners. Both are 50% of the shares.
Our company lost a court case and has to pay AED 200,000 to the creditor.
The creditor started an execution case.
Questions:
A) Can I pay my 50% share (AED 100.000) and ask for my name to be cleared from the case (then the execution case will only be between the creditor and the other partner, for the remainder of AED 100.000)?
Or that is not allowed while the civil company is still in existence?
B) Is it possible to liquidate the company and then the execution lawsuit will be broken into two parts (Part 1: Creditor and partner 1 for AED 100,000, Part 2: Creditor and partner 2 for AED 100,000).
If yes to the above questions, please be kind to inform the process.
Thank you!
As per the law in case of the civil or commercial company, the liability shall be as per the limited liability mentioned in the MOA.
Please call e-mail.
Dear Client,
Good day!
Yes, our execution department will be happy to help you with this.
You need to meet the execution judge and explain the situation and tell how much partnership you have, provide all the company documents and then you can pay 50% of it.
However, we need to review the judgment to confirm whether it has to be paid jointly or severally.
For further assistance, please feel free to contact us via phone or email.
Thank you!
