Questions & Answers
How to guarantee your rights before investing in a company
Dear Sirs,
I'm looking to invest in a company by purchasing movable assets. I will not be a partner in this company, however, the company owner is offering to give a security cheque against a minimum amount to be invested in.
My questions are:
Is it feasible to get a security cheque against the amount invested? does it secure my invested money? What are other alternatives to guarantee my money invested?
Is there any minimum amount where the debt amount is due, identified, unconditional and is not less than AED 10,000 and evidenced in writing?
After then I can be able to file for a court case whenever this debtor breaches the given date?
Your response is highly appreciated,
Thank you in advance, RAFIC
Dear Rafic,
Please be advised that a security cheque may not be the most feasible (or legally secure) method to protect your investment.
This is due to the fact that in the event the cheque bounces, it will be a long legal battle that will cost you more time and money.
What we recommend, and have done for clients in the past, is by way of a Security/Investment Agreement. The agreement will be drafted in accordance with the prevailing laws of the UAE and will provide guidance on the terms and conditions of the deal.
Needless to say, the agreement will also include a full set of provisions related to delayed/non-payment of your financial dues.
For further information, please contact us at our email.
A security cheque with an equal amount of investment and a contract shall help file 2 cases in case of non-compliance:
1- Would be a Fast Track civil suit against cheque(s), and
2- A case on Breach of Contract.
For any legal help, reach us on the phone.
