Q: I am a partner in an LLC company in the UAE. I am in India now and do not wish to continue association with the company there. I have told my partner to take over the company and remove my name from the license, but my partner is insisting that I visit the UAE to transfer the business to his name. Kindly advise!

Q: I hold a 25% stake in a Free Zone company in Dubai, with my business partner holding a 75% share and therefore being the majority shareholder. In April 2017, there was an agreement between myself and my partner, in which he agreed to transfer all of his shares to me. Upon this agreement, we both signed and stamped a request for transfer of shares document as well as a shareholders resolution. These documents were then submitted to the Free Zone Authority but then were subsequently withdrawn without my knowledge. As far as I was aware the documents were still being processed and I only found out about the withdrawal of the documents when I followed up with the Free Zone Authority. The Free Zone Authority has since acknowledged that they should not have returned the documents and are trying to mediate between myself and my business partner to submit the documents again but he is refusing to do so. I want to know what legal action I can take against my partner for his actions.

Q: My company is located in Dubai as an LLC. We have two shareholders, 1. UAE national shareholder with 95% 2. A foreign shareholder with 5% The UAE national shareholder transferred this 5% shares to the foreign shareholder through a share sales agreement, which was notarized at the notary public in Dubai and submitted it to the DED to amend the trade license etc. This happened in 2014. But till this date, the foreign shareholder did not pay the value of 5% shares to the UAE national shareholder or to the company. Also, the foreign shareholder was not actively involved with the company's operation and as per Article 17 of the Commercial Companies Law: "2. The partner may not contribute in work rendered unless he is a joint partner. The contribution of the partner may not consist of his having reputation or influence." Under these circumstances, is it possible for the UAE national shareholder to request from the court to cancel the 5% shares of the foreign shareholder and transfer back to him?

Q: Hello Ahmed, Perhaps you can help me! I am an equal partner in an LLC company. There are in total 3 partners. All of us are equal on the MOE (we are all managers). While I was away on a vacation, the partners got together to try to push me out. They have done this by trying to make my life an uncomfortable nightmare in the office, blocking my work, started hiding emails, and instructing an employee of ours to do the same. They also fired our accountant and moved our 4 years of books to a new accountant, who I've been told by them is "cleaning up". For 5 months, I've been getting excuses on why I have not been given access codes to see the new books or bank statements, etc. I'm locked out of various platforms. I am very worried now as I'm also responsible for what they do. They cannot buy my shares and I am concerned that they are scheming a way to get rid of me in another way. Can they shut down and open again for instance? What can you suggest about my rights here? Thank you!

Q: Hello sir/madam, Perhaps you can help me! I am an equal partner in an LLC company. There are in total 3 partners. All of us are equal on the MOE (we are all managers). While I was away on a vacation, the partners got together to try to push me out. They have done this by trying to make my life an uncomfortable nightmare in the office, blocking my work, started hiding emails, and instructing an employee of ours to do the same. They also fired our accountant and moved our 4 years of books to a new accountant, who I've been told by them is "cleaning up". For 5 months, I've been getting excuses on why I have not been given access codes to see the new books or bank statements, etc. I'm locked out of various platforms. I am very worried now as I'm also responsible for what they do. They cannot buy my shares and I am concerned that they are scheming a way to get rid of me in another way. Can they shut down and open again for instance? What can you suggest about my rights here? Thank you!

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.

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.