Questions & Answers
Removing the name from a trade license to avoid the financial consequences
Hi Ms. Rajasree,
Good Day!
I was a resident of the UAE. Last year, I moved to Germany (since Sep 2020) handing over my partnership rights to my partner at the Al Twar court notary premises (Qusais).
However, off late, I did find that the partner is in a big mess and he hasn't primarily paid any rentals ever since my exit; also hasn't taken my name from the trade license with the Dubai economic development.
Now all the payment dues (and other related company issues) are also reflected in my name and the court has also issued a verdict (via RDC) to our company which now implies to me too (since my name wasn't taken out).
Our company is an LLC company. So my questions to you are:
1) Is there a process to take my name off. from the trade license if I approach the court and explain as I wasn't a part of this by any means as already I have the originals of the partner's amendment signed?
2) If so, for appointing a legal entity, how could I execute a POA from Germany to a legal firm in Dubai?
Dear questioner,
Thank you for contacting me!
I understand from your brief that you have amended MoA through which you have sold all your shares and retired from the position of shareholder. However, your name is still on the trade license.
Amending the MoA is the right procedure to transfer the shares and it is concrete proof of your retirement as a shareholder or partner.
I assume that you are not the manager of the company and you are just a shareholder only. In that case, the RDC judgment will have limited or no effect on you.
However, you should immediately demand the other partner to reflect the changes in the trade license as well.
Further, regarding the PoA, you shall get it notarized and attested from the ministry of external affairs, and then the UAE embassy in Berlin.
Please feel free to contact me if you need any further clarification!
Regards,
Rajasree Ravivarma
