Q: I have been given some investments in a few companies with a contract on a fixed agreed profit. Now, they default on the agreed profit and even delayed paying back of capital. What procedure do we have to follow to recover our investments?

Q: I am a 50% shareholder in a DMCC company. The other shareholder is withholding company profits. They have also given themselves a large pay rise and taken money out of the company bank account. They refuse to give me my share of the profits. I would like to know what options I have to remedy the situation. Thanks!

Q: I have invested in a company, which they promise to pay me 20% return in March 2015. They paid my returns for about 2 years, though most of the times it was delayed. They stopped paying me almost a year ago and have not paid a single Dirham since then. The company seems to be a fraud because the other investors with whom I am in contact with faced the same issue and their payments are stopped for one year. I am seeking legal advice on how I can recover my money from them.

Q: Hello, I own a French startup company. I have been contacted by a foreign company that is willing to invest the sum of 1.5 Million Euros in a convertible loan basis for a 5 years term period. There is an annual return on investment of 4% annually, and an option to acquire equity minority stakes of not more than 15% in the company at the expiration of the loan period solely at our discretion. It seems pretty fair, but as the transaction is to be done in a Dubai Islamic bank, they said that I will be responsible for legalizing the loan agreement in the Dubai court under their supervision upon my arrival in Dubai. There will be a charge equivalent of no more than 12,800 Euros that will be used as security documentation and swiftly wire the investment funds to our local account in France. Is it a regular process for investment arranged with two international countries from a Dubai Islamic bank or is it a fraud?

Q: Dear Sir/Madam, An investment company in Dubai has consistently been late with almost every payment of interest due every six months. They do not acknowledge that the payment is late, even though the certificate states that it will be paid on 10 May and 10 Nov each year from 2020 to 2025. The longest delay so far has been 26 days, with only one payment being 2 days early. They do not answer my calls or messages. The payment due on 10 Nov this year is still awaited as of 26 Nov. What can I do?

Q: There is a company in UAE dealing in assured monthly returns, and fixed interest. They format a proper contract and give security cheques for principal and interest amounts. My contract is finished and I am asking for the principal maturity amount. The company is giving new dates every time and not releasing the maturity amount. Should I deposit the security cheque? What will happen if the security cheque bounces? How to legally deal in such a scenario.

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 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.

An interview-format article covering the topic of the amendments to the company law in the UAE. 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.

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.