Q: I'm a partner in a company. My partner who is also a manager ruined the company. There's a big load of debts in the market which also crossed the capital. Is there any way, according to the law, by which I can sue him for mismanagement of funds and get my investment back? If the capital is gone and further losses are more than the capital, what are my legal rights in this situation?

Q: We are 2 partners in a technical services LLC company, it's 6 months old. I paid some money to my partner to clear the instalment amount with setup consultancy which he didn't pay yet. Also, he's not investing his share further comparatively my investment is more for setup. He is still using the business license keeping me away (hiding), his phone is not reachable all the time, only contacting me on Whatsapp and telling lies. Due to his untrustworthy, I would like to claim my investment and damages from my partner and need to withdraw my partnership. Give me a solution.

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: Dear sir/madam, Can a partner of a company make an acknowledgment of debt to himself? There is a small professional license company with two partners. Each partner has the power to sign documents singly. Partner 1 gave 1 Million AED as a loan to his company from his personal account. There is no equal amount paid by Partner 2. The company bank accounts show that the company received money from Partner 1 and there is no evidence that this amount was paid back. There is an existing court verdict that states that Partner 1 gave loans to the company and partner 2 did not provide any evidence that it was paid back. Can Partner 1, in his role as partner and signatory with power to sign singly, sign an acknowledgment of debt on company letterhead in favor of himself in his personal capacity? I thank you for your help!

Q: I opened a cafeteria with my colleague spending AED 120000/- each. I was an investing partner and my colleague was the working partner. A few weeks after the cafeteria opened, we had a lot of disputes because I noticed fraud in accounts and initial setup expenses from his end. So I decided to exit the business and I asked for my money back. But he is refusing to pay back anything. The trade license was issued in the sponsor's name and not in any of our names so I could not do anything. Also, I paid him most of the money in cash as I trusted him then. However, I have a mutually signed agreement with the 120k mentioned as paid to him in that. How can I get my money back?

Q: My company is FZC - Free Zone Limited Liability Company (FZ-LLC). The company is incorporated in the Free Zone with 2 shareholders and has 2 licenses- Commercial & Industrial and has a warehouse for stocking the goods. Every year when the license is renewed, the warehouse rental is also renewed. In the last 4 years, the licenses and warehouse are not renewed and the warehouse is not handed over to the Authorities. The Authorities filed a legal case saying that the warehouse rental needs to be paid for 4 years, and only then the premises can be vacated. Then the judge issued the verdict saying that the owners are liable to pay. Since the owners cannot pay the amount, the judge orders travel bans and arrest warrants for the owners. The company is LLC, which means in general, the owners of an LLC are not personally liable for the debts of the company. This means that if the company is sued, the owners are not responsible for paying off any debts with their personal assets. Am I right?

Q: Dear Lawyers, I am a 50% partner in a company. I had given a 2M AED loan to the company about 10 years ago. There are expert reports and bank records to prove the loan. The company does not have any bank balances or assets. Should I start a lawsuit against the company and demand 2M AED, or should I start a lawsuit against the other 50% partner and demand 1M AED? One benefit of suing the company is that I can obtain an acknowledgment of debt, and later in an execution case, I can issue a certificate of solvency to have the other partner arrested. However, suing the other 50% partner directly would include their name in the executive writ. Please guide me! (I believe all necessary legal information is provided here. If something is missing, I can provide additional details here.)

The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

The provisions of this law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes in the UAE.

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.