Q: My husband was awarded shares in the company he works for. Now he is leaving and wants to sell them and the company refuses to acknowledge the fact that he holds shares even though it clearly states that he does in the 'Articles of Association'. What advice can you give to us? Thanks.

Q: Hi, I invested AED 75,000 with a company that intended a takeover of CCTV installation, and the company is located in DAFZA with 4 partners. They made me sign an internal contract which wasn't signed by all the partners and I never got a copy of the same signed by all 4 partners. I kept chasing them for the same as well as for MOA from DAFZA and name change on Trade Licence but got only excuses. Finally, after 3 months of chasing them, they informed me that they don't intend to take over the company and wanted to divert my funds elsewhere. I refused and asked for a refund. They gave me a fraud cheque that got bounced due to the unauthorized signatory. I filed a police complaint, after which the authorized signatory was summoned by police. Later the signatory contacted me and wanted to settle it in 4 PDCs across 3 months but on a condition that I return him the fraud cheque which is the only proof I have proving his fraud intentions. Kindly advise if his demand for the return of fraud cheque is valid?

Q: We invested in a clinic venture (LLC) as a 25% partner with an investment totalling approx. AED 600k. The starting date of the clinic was supposed to be 31 December 2018 as per the sale and purchase agreement. 9 months have passed, and even the basic inspection to activate the license has not been done. I want to file a case against the original investors whose scope of work includes the activation of the clinic license, as they are currently deceiving me and creating excuses not to start the clinic. They haven't shown till date a breakdown of expenses and where my investment has gone as the condition of the clinic has worsened. Additionally, they are now asking for more money or threatening to close down the clinic as they haven't paid the rent for 5 months and have informed me only this week. Kindly help me in this case. What can I do?

Q: Before 2 years, I gave a loan to the owner of an advertising company. He was getting an order of advertising on a 2-3 month credit basis. However, he did not have the cash amount to pay the suppliers; hence, I gave him a loan against a share of transaction profit. Against my cash cheque, he was giving me 2-3 month post-dated cheque for the amount value of cash paid + the profit. Things went well until the very last cheque bounced with an amount value of AED 80,000. Further, I gave the same owner but under a different company (gym business) AED 100,000 to purchase new gym equipment. He gives me rent of 3K per month until 6 months and after that, he pays me 114K to own the gym equipment. Only 2 x 3K cheque cleared but the rest bounced. Now, I'm left with 80K cheque from the advertising company, 3 x 3K from the gym company, 100K from the gym company, 14K from the gym company. Can I legally proceed and successfully get my money back? What are the procedures and how much will it cost? Thanks

Q: Does a partnership agreement between parties need to be notarized in the UAE?

س: إلى السادة المحامين المحترمين، الموضوع/ أنا مسثتمر تجاري كنت أرغب في شراء مؤسسة تجارية بمبلغ مليون درهم واجتمعت بمالك المؤسسة ووكيلها القانون. المؤسسة التي أرغب في شرائها عليها التزامات وديون وليس لي علاقة بذلك كوني مشتري والبائع ليس لديه مبلغ لسداد ديون على المؤسسة وكان يرغب في سداد الديون عبر أموال المشتري. وهنا قام البائع بعرض سند تنازل عن المؤسّسة مُوقَّع من وكيله القانوني ومختوم من مؤسسته، وهنا فعلاً دفعت مبلغ قيمة الشراء بحسن النية كي يسدد ديون المؤسسة ويُخلي ذمتها ويستطيع التنازل عن المؤسسة خالية من الالتزمات ولكن هذا لم يحصل. تأخَّر في التنازل رغم محاولة المشتري مرارًا وتكرارًا التواصل مع المالك ووكيله القانوني إلا أنه كان يتحايل ويماطل بأنه يحتاج إلى وقت وما شابه ذلك. بعد الإلحاح عليه لرد المبلغ المُستَلَم، قام بتحرير شيك ووقّع الوكيل القانوني عليه وعند الصرف لم يكن يقابله رصيد. فُتحَت دعوى أمر أداء وقام البائع بالاستئناف واحتجّ بأنه لا يعلم عن موضوع البيع شيء وأن الوكيل مستثمر وأن صاحب المؤسسة مجرد كفيل دون أن يُثبت ذلك وتم تعيين خبير كانت دراسته مجرد رأي بدون أدلة. ما الحل؟

Q: Someone offered me a partnership in a business. They will capitalize and finance the business while for me I will run it for them, 3 investors. They will give me 10% of the yearly profit, is this a good percentage? Then as for me to survive on a daily basis, they will give me AED 5000/monthly and this amount will be deducted from the yearly profit, it's like an advance payment from the yearly profit. is this a good offer? Hoping for some enlightenment.

س: السلام عليكم ورحمة الله وبركاته، اتفقت مع سيدة على الشراكة في محل تجاري. حولت لها المبلغ تحويلاً بنكيًا وبعدها لم أسجِّل اسمي بصفة شريكة. كانت تتهرب وبعد شهرين من التحويل، أرسلت لي رسالة أن خذي أغراضك من المحل فقد خسرنا وسلمت أختي المحل وليس لك شيء عندي (علمًا بأن المحل موجود وهذا الكلام منذ عام ٢٠١٩). طالبتها بإرجاع المبلغ وقالت ليس لك شيء عندي وبعدها حظرت رقمي. حاولت أحل الموضوع معها بدون محاكم ولكنها لم تستجب لي. توجهت للمحكمة ورفعت قضية والمحامي طالب باسترداد الدين الذي في ذمتها بدون شرح تفاصيل الموضوع. جاء ردها بأنها تنكر المبلغ وبعدها أقرّت أن التحويل كان بهدف الشراكة في محل وليس قرض. طلبت المدَّعَى عليها بتوجيه اليمين الحاسمة أن المبلغ قرض وليس لهدف الشراكة. أنا لم أحصل على الشراكة ولم يتم استرداد المبلغ. ما الحل؟ جزاكم الله كل خير!

س: السلام عليكم ورحمة الله وبركاته، من فضلكم استفساري هو: اتفقت مع صاحب شركة خدمات في دبي على الدخول معه شريك بنسبة في الشركة. سلمته مبلغ 150 ألف درهم إماراتي ولكن نقدًا، وللأسف لا يوجد عندي إثبات لعملية التسليم إلا رسائل الواتساب وكذلك اتفاقية عرفية مؤشَّرة بختم الشركة. ونظرًا لتهرُّب ومماطلة صاحب الشركة في تسجيل اسمي باقتصادية دبي وأيضًا عدم تحصيلي لنسبتي من دخل الشركة، قررت استرداد رأسمالي من عند هذا الشخص. ما الحل في هذه الحالة؟ وجزاكم الله خيرًا!

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.

In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.

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.